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Technology Stocks : John, Mike & Tom's Wild World of Stocks -- Ignore unavailable to you. Want to Upgrade?

To: wlheatmoon who wrote (898)	4/25/2000 7:07:00 AM
From: wlheatmoon	Respond to of 2850

NOK thetelecommanalyst.com Dominating Through Efficiency By John Bishop The Telecomm Analystsm recently spoke about NOKIA (NOK) with Greg Teets, telecommunications analyst for AG Edwards & Sons. He believes that product quality and high margins will allow NOKIA to maintain its advantage over its competitors. [THE TELECOMM ANALYST ? JOHN BISHOP] What has allowed NOKIA to be the leader in a highly competitive market? [Greg Teets] I think that very efficient manufacturing and being the dominant player have allowed NOKIA to reinvest and refresh their product line very rapidly. NOKIA has been very astute at designing handsets and incorporating features that users want much more successfully than its competitors. NOKIA's handsets are much better quality, and consequently people have fewer problems with them. [JB] Do you think NOKIA will be able to maintain its market position? [GT] I expect that NOKIA will be able to keep up its market position. NOKIA's margins, which are so much higher than those of its competitors, allow them to continually reinvest in the business. For example, MOTOROLA'S (MOT) operating margin for first quarter 2000 was around 1.5%. At the end of 1999, NOKIA had an operating margin around 25%. That's the difference between the No. 1 and the No. 2 players. [JB] What accounts for the difference in NOKIA's and MOTOROLA's margins? [GT] Once again, I think it comes down to very efficient manufacturing. As the largest player in the handset space, NOKIA has greater supply-chain efficiency than its competitors. Any supplier will cut NOKIA a deal, and the firm has been working very closely with its component suppliers. This close relationship has allowed NOKIA to avoid some of the component shortages that have plagued other firms for the last year and a half. [JB] What's your rating on NOKIA's stock, which has been trading around $50? [GT] I have an ACCUMULATE rating on NOKIA, and a 12- to18-month price target of $59. My revenue estimate for fiscal year 2000 is $27.6 billion with earnings per share of $0.69. For 2001 I estimate revenue of $38.3 billion, with earnings per share of $0.90.

To: wlheatmoon who wrote (898)	4/25/2000 1:02:00 PM
From: John Pitera	Read Replies (1) \| Respond to of 2850

Mike, I recall talking about CMTO on prior occasions. I'm a bit less enthusiastic about cable being the last mile interface with the home, than I was say 9 months ago. Hence, I'm a bit on the cautious side on CMTO, Thanks for posting the info, we can never read enough about these companies. BTW your next post, where we see that NOK has 25% margins and MOT has only 1.5% margins really underscores the competitive differences out there in the marketplace. John