Tero,
What's going on is that people no longer are comfortable with rosy long term projections and are demanding a greater risk premium for stocks, so that although Nokias near term prospects may not have changed one iota, the value ascribed to it has.People with long memories have marvelled in recent years at how PE ratios have expanded, what was once thought of as very very expensive came to be seen as cheap, ie a PE of 20-25.Look at DELL, CSCO, MSFT,how expensive they still are. Sometimes the past is seen as prologue, at others not. I know all of this is probably painfully obvious, but had to throw it out there anyway..
Good Luck....dave |
