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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (30862)	3/12/2000 9:58:00 PM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

ERICY...Reemerging as Telecom Leader By William L. Valentine Columnist 03/06/2000 12:16 PM Swedish cellular-phone and equipment maker Ericsson (ERICY: Nasdaq ADR) is a company I know well from previously owning it. But I haven't held the stock in about a year and that's a long time in the telecom world, so I thought I'd revisit it. At the time I was parting company with the stock, it was having some troubles. I took the opportunity to sell Ericsson for its more stable nemesis, Finland's Nokia (NOK: NYSE ADR). Both stocks have since done very well. Today, Ericsson has reemerged from its disappointing former persona, and while the stock is a bit ahead of itself right now, investors brave enough to ride out the bumps will continue to be rewarded. Overlooked Wireless Operations Stockholm-based Ericsson, Nokia and Motorola (MOT: NYSE) have been playing musical chairs in the leadership spots of the global cellular-phone market. Before recently being eclipsed by Nokia, Ericsson could claim to be the largest seller of these phones in the US and the rest of the world. But a fall from grace began in 1998. The company was troubled by a combination of factors, including an incomplete consumer product line, executive turnover and the Asian economic crisis. Ericsson's most visible product is the cell phone and the company has done a good job to create brand recognition. But for all the hubbub surrounding the dynamics of cellular phones, the real growth side of the wireless business often gets overlooked. Namely, I'm talking about wireless network-equipment products and services, which account for two-thirds of Ericsson's revenues -- more than twice that of the company's cell phones. The company also makes modems, microelectronic parts and defense electronics. Like the best non-US technology companies, Ericsson does a good job of providing information to American investors. The company's Web site (www.ericsson.com,) for example, is a wellspring of fascinating information on the company and its strategy for the future of wireless communication. Taking All Sides in Format Battle Do you know your CDMA from your TDMA? Do you give a GSM? The most vexing issue surrounding wireless communication is that of standards for organizing transmissions. Right now, as you travel around the world, you see different radio-frequency standards that prevent most phones from working outside your home region. For example, if TDMA (time-division multiple access) is the standard in your country, your phone won't work when you travel to an area covered by a CDMA network (code-division multiple access) or GSM (global standard for mobile communications). It was hoped that by now, the industry consortia would have ironed out their differences and adopted a universal standard, but they haven't. In the meantime, Ericsson, like its competition, has phones that work with each of the standards, but is working hard on developing ones that are mutually compatible with many standards to allow consumers to take them anywhere. Bluetooth Would Give Ericsson Bite As I've said before, the next sexy development in telecommunications will come by way of Bluetooth. Bluetooth is a technology that will allow hand-held wireless devices -- like cell phones, electronic organizers, Palm Pilots, etc. -- to send and receive Internet and data transmissions. This Dick Traceyesque technology -- known as WAP (wireless application protocol) -- is well on the way and you will hear about it on an increasing basis. Expect Ericsson to come out with several models in the next three years that carry embedded Bluetooth chips. I predict that we'll all soon be upping our earnings forecasts for hand-held wireless-device makers in response to the success of Bluetooth. Currently, Ericsson is not cheap. Trading at 87 times next year's earnings, I'd have to argue that the comeback is fully discounted in the stock price. Investors with short-to-intermediate holding periods may best wish to hold off until we get a pullback. However, for the bold, long-term investor, this company should be seen as one that could continue to do very well over time. William L. Valentine, CFA, is president of Valentine Ventures LLC, an investment manager of global stocks for individual investors.

To: IQBAL LATIF who wrote (30862)	3/13/2000 6:58:00 AM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

THe new economy stocks are under pressure, I would think that Japanese slow GDP or rather recession threat is on the back of global weakness, bonds are higher as flight to quality is in offing. Looking at some of the key indicators profit taking on new economy is on cards, some leading sectors look very stretched like SOX, some puts long ones can be helpful not at the open rather 2 hours into open after a rebound of SPH from the lower opening. Old economy stocks would be a natural hedge like bonds we will see some backing up as investors find near bottoms in stocks wehave been highlighting. That still needs to be tested today, I would like some of these old economy stocks to perform better and buck the trend. Lets watch and see.. 1382 on SPH should hold and the low of 9800 9850 on DOW, I would assume that DOT IIX SOX may be in for rough times today whereas DOW SPH may hold the supports..