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Technology Stocks : Nokia (NOK)

NOK 7.030

+1.7%

3:59 PM EST

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To: slacker711 who wrote (2928)	12/6/1999 10:45:00 AM
From: tero kuittinen	Read Replies (2) of 34857

I don't see the connection between Nokia's remarks and the ensuing orgy. OK - next year's sales growth may hit 40%. But the earlier target already was 25-35%. We knew it was going to be near the high-end, anyway. So how does a 5% hike in one year's growth target result in this? They didn't touch the long-term growth target. What's even more bizarre is the immediate halo effect on Ericsson and Motorola. If Nokia tops 40% sales growth in 2000, it can't possibly be good news for Motorola. The overall market is not expanding fast enough to justify 100 P/E ratios for all top three mobile manufacturers. Global sales growth is not increasing in either handset or network markets. It's decreasing. It still beats the tar out of PC industry growth - but the peak is in the past. It's the damnedest time to start revaluing mobile telecom stocks. The current freaky buying spree can't be traced to the actual telecom sales projections. It's the dreaded "K-TEL effect" I hoped we could avoid. Hook a company into the cyberwagon and hitch a ride to the magical candyland of triple digit P/E ratios. Tero

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