NOKIA top large-cap pick, according to Mark McKechnie,Banc of America Securities' senior wireless communications analyst, Mark McKechnie "recommends Nokia (NYSE: NOK Strong Buy) as his top large cap pick with its dominant market share in handsets and tremendous cost advantage."
The above excerpt from:
As the Internet 'Goes Wireless,' Outlook for
Wireless Communications Sector Is Robust,
According to Banc of America Securities Analyst
SAN FRANCISCO, Feb. 3 /PRNewswire/ -- The following is being issued by Banc of America Securities, a member ofthe National Association of Securities Dealers, CRD number 26091:
With greater pricing competition and better quality services driving growth as well as robust global fundamentals, the wireless communications sector is experiencing a revolution as the Internet goes wireless, according to Banc of America Securities' senior wireless communications analyst, Mark McKechnie.
(``Handset sales were up 63 percent last year and wireless component shortages in 1999 have left a dry channel to kick off this year, so the big question for 2000 is -- will supply catch up with demand?' says McKechnie. ``The driver that will have the most impact on this market is the development of the wireless Internet.'
McKechnie made his comments to investors yesterday at the 17th Annual Banc of America Securities Technology Conference, which runs through Friday, February 4 at the Ritz Carlton in San Francisco. This year's Tech Week will feature195 presentations from public and private companies representing a broad spectrum of investment opportunities in
communications services, computer and peripherals, distribution, networking, semiconductor, software and Internet industries.
Lower service costs and deregulation in the communications industry have brought down wireless fees for customers, while the quality of wireless phones has improved with increased battery life and talk time and a conversion to digital services. These two trends are driving the growth of this sector and will continue to do so through the next decade, predicts
McKechnie.
Wireless communications companies have strong global fundamentals in the end market, with explosive sales in the U.S.attributable to new concepts like one-rate plans, McKechnie says. Europe has seen exponential subscriber growth and demand in Latin America and Asia is also increasing as their economies recover.
``We have witnessed the evolution of the Internet from businesses to homes and now we are seeing a new push toward taking the computing power off of the desktop and putting it into people's pockets,' says McKechnie. ``The Internet is very underutilized today, but within two years most people will have wireless Internet capabilities. The question remains how we'll get there.'
McKechnie believes that the introduction of the WAP -- wireless application protocol -- browser will kick off a virtuous cycle in the wireless Internet similar to the Netscape browser in the wired Internet. Carriers are busy upgrading their networks with packet overlays like General Packet Radio Service (GPRS) to optimize the power of the wireless Internet.Packet service will play an integral role in the development of the wireless Internet as this will allow subscribers to maintain a constant connection without squandering valuable network capacity.
``There is a giant sucking sound called the wireless Internet, which is just in its infancy. The movement is already kicking in and now the only determinant is how quickly we can build out these new systems to accommodate the demand for these services,' says McKechnie.
In this space, McKechnie recommends Nokia (NYSE: NOK - news), $188.31, Strong Buy)) as his top large cap pick with its dominant market share in handsets and tremendous cost advantage.
Banc of America Securities LLC (BAS), a subsidiary of Bank of America Corporation, is a full-service investment bank
and brokerage firm. With principal offices in San Francisco, New York City and Charlotte, BAS employs more than 4,000
associates in offices around the country, and with affiliates, offers capabilities worldwide.
Bank of America Corporation, with $633 billion in total assets, is the holding company for the largest bank in the United
States, with operations in 21 states and the District of Columbia. |
