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Technology Stocks : Nokia (NOK)
NOK 6.070-1.5%Dec 5 3:59 PM EST

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To: tero kuittinen who wrote (2103)9/9/1999 1:08:00 PM
From: Wyätt Gwyön  Read Replies (1) of 34857
 
Excuse me if I ask a question outside the realm of the CDMA/GSM wars...but one thing no one seems to dispute is Nokia's dominance as a handset maker. What are the EPS prospects going forward? A look at the five-year consensus on forward EPS says about 22%, w/trailing PE a little over 40. Is there reason to hope for much upside from the consensus figures? Sounds like Nokia is doing a lot with data-enabled terminals, which presumably carry higher margins. Dell has shown it is possible to acquire a monster trailing and run-rate PE in a commodity biz that seems a lot simpler than wireless.
I guess what I am wondering is, why is the trailing PE relatively low for a company (NOK) that dominates its niche in an exploding market? Seems like it could be priced a lot higher...am I missing something? Thanks for any input, Greg
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