Hi Karin. Haven't heard from you over here for awhile. You know, analysts never cease to amaze me. Yesterday morning, Credit Suisse issued a strong buy report on ERICY. Today ERICY preannounces and the stock goes down by about 5. I guess if it was a strong buy yesterday it must be a stronger buy today at these prices and that is just what I am going to do. I know you mentioned them here before and thought you would be interested. Jeff
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LM Ericsson (ERICY, $28.31, STRONG BUY)Target (12 Months): $35-$40
Our channel checks indicate that AT&T's Digital One Rate plan
debuts with another handset, the Ericsson 788, sold by the majority
of AT&T outlets. The 788 is currently the smallest handset carried
by One Rate and, we believe, previously garnered significant demand
as a GSM model in Europe. AT&T now has two Nokia handsets, the
6160 ($200-250) and the 5160 ($100-150), and two Ericsson models,
the 788 ($200-250) and the 688 ($100-150). We expect that AT&T's
lineup, which caters to differing pricing points, will provide
ample momentum to produce a wireless Christmas selling season. We
reiterate our Strong Buy rating, given solid wireless fundamentals
stemming from deregulation and privatization, Ericsson's entrenched
position in a majority of the world's wireless hot spots, the
sustainability of higher gross and operating margins and the
prospect for a new handset product lineup. Our 12-month price
target is $35-$40.
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