11:08 ET I2 Technologies (ITWO) 28 11/16 -7 11/16: --Update-- Stock retreating
after management made cautionary comments on the conference call with analysts.
Company concerned about quality of pipeline and execution in Europe. In addition,
ITWO reported a sequential increase in Days of Sales Outstanding. Raymond James
cuts stock from "buy" to "neutral."
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MOBILE PHONE STOCKS. Given the positive results that Nokia Corp. (NOK/A 83), the
Finnish phone maker, posted last night, mobile phone stocks are expected to be active this
morning. According to Nokia, management expects growth for 1998 to exceed its target of
25-35% as business is very good on a global basis as top line growth continues to expand. In
the latest Q2 period, mobile phone sales increased 50%, while fixed-line telecommunication
equipment sales rose 45%. Given the expanding communications market and growth potential
that remains in this area, cell phone stocks are expected to be a highlight this morning.
Expects shares of Ericsson (ERICY 30 15/16) to move up on the news from Nokia, and shares
of Motorola (MOT 51 5/8) could also follow in their footsteps. Shares of Nokia were beaten
up late last year as the company reported a lackluster Q4 as sales were in the single digit after
double digit-growth in the prior quarters. However, since early last year, the stock has made
considerable improvement, rising 55% since April alone as the company returned to its fast
track growth path with sales in Q1 increasing by 30%. With another quarter of strong results,
Nokia is again leading the pact of mobile phone makers. And as the world adopts the
deployment of new wireless networks based on GSM technology, Nokia and Ericsson appear
to be in very good positions to exploit their experience in this area. |
