Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: Mephisto who wrote (2933)	12/6/1999 3:21:00 PM
From: Mephisto	Read Replies (2) \| Respond to of 34857

"In a meeting with Wall Street analysts Friday, Nokia said it now expects worldwide use of mobile phones to reach 1 billion by the end of 2002, rather than at the end of 2003, as it had previously forecast. As a result, Nokia said it expects revenue to grow 30 percent to 40 percent in 2000, above its former forecast of 25 percent to 35 percent. That prompted a slew of brokerages to raise earnings estimates and stock price targets on Nokia, the world's largest maker of wireless phones. At Salomon Smith Barney, for instance, analyst Alex Zena raised 2000 estimates to $2.90 a share from $2.75 and 2001 estimates to $3.75 from $3.42. He raised his price target to $225. Nokia continues to stay in front of the competition and has launched more mobile phones this year than it did last year," Cena wrote to clients. "Nokia is also well positioned to drive growth from wireless data as well." Excerpts from an article by Jeffry Bartash is a reporter at CBS MarketWatch.

To: Mephisto who wrote (2933)	12/6/1999 5:07:00 PM
From: tero kuittinen	Read Replies (3) \| Respond to of 34857

The accessory angle is great - it seems to work like a charm. A razor and blades business model where both are profitable. Fine. But what we're seeing is 50 billion dollars added to Nokia's market cap in a matter of weeks. Just a couple of weeks ago Nokia's target for the end of year 2000 was 120 dollars. Now we're talking 220 dollars in six months. Did something fundamental happen? Or are the investment banks now just chasing the market, instead of really looking at the business and basing their targets on that? I don't think that Nokia even touched their long-term projections in the Texas meeting. It's a great company, but what this market is doing is assuming that the long-term profit picture is suddenly a done deal. People can't keep adding the GDP of a Central American nation to the market cap of a leading company every month just because they're feeling perky. Jacking up the price earnings ratio to 100 doesn't make the company any more succesful. It just places an enormous burden on future earnings growth. The year 2000 quarters need to be not only good but flawlessly superb. I would be covering Amazon if I was into ulcers. Tero