Doesn't it spook you that three of Nokia's major vendor-financed 3G customers are all in Europe and that Nokia in 2000 had over EUR 3.6 bn in outstanding loan commitments for 3G? That's a whole lot of money to lend to the financially strapped. At least one Turkish carrier has defaulted.
With the upcoming global recession, Nokia is going to be in a tight spot: Does it honor its loan commitments to the strapped carriers who are hurting not only because of the 3G licensing follies but who are also feeling a recessionary pinch or does it lend on the come, hoping things get better?
I understand the necessity of vendor financing. No loan, no sale. A rock and a hard place. Difficult to navigate properly. One or two miscalculations and the balance sheet will seriously suffer.
I don't like it any more than you do as any problems related to vendor financing delay 3G royalties to Q.
By the way, I play both sides of the street, too. Should have sold some Q in late '99/early 2000 and Nokia when it was in the 60s. Live and learn, give me one more mania and I will sell. My interest in Nokia is not true ownership, control and ultimate benefit but not present ownership.
I've held both, so far.
Don't understand trimming Q position except to take profits since you said a long time ago, if my memory serves me right, that you were in Q primarily for 3G royalties. |
