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

To: tero kuittinen who wrote (4585)	5/4/2000 3:39:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 34857

ROTFLMAO, Ketel 1? eom

To: tero kuittinen who wrote (4585)	5/6/2000 8:16:00 AM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 34857

Why you should sell NOK and buy MOT, according to bearron's> Q: What's your case for Motorola, since Nokia seems to be taking market share? A: The history of the handset wars is one in which the baton for leadership gets passed around among Nokia, Ericsson and Motorola every few years. Nokia is a name we like and we have in the portfolio, but it is a much more expensive stock than Motorola today. And it is more of a pure play on the handset business, which is only a part of the Motorola story. I would not be rushing out to buy Nokia today at 76 times this year's earnings. With Motorola at 37 times this year's earnings, you are getting fully compensated for a slower rate of growth in the next year or two relative to Nokia. But I think Motorola could end up being the better stock. Q: Explain. A: They are going to get their fair share of the handset business. On the infrastructure side they will be a player in the next-generation wireless sets -- 3G -- on a global basis, and they will get their fair share of contracts there as well. They are one of the world's largest semiconductor companies and the demand for silicon has never been greater. That will be a good engine of growth for them. The purchase of General Instrument brings Motorola's presence more directly into the home through the cable-set-top box business. This is another avenue of growth as increasingly the set-top box becomes a sophisticated router, if you will, for interactivity on the Information Highway. Q: So the bet is on cable rather than DSL? A: Cable will be one of the major delivery mediums for Internet activity. The cable modem rollouts taking place are going well and, in some cases, better than DSL. Cable architecture has been endorsed by the likes of Bill Gates and John Malone. Cable is going to be a formidable competitor when it comes to Internet access. If Motorola can grow earnings at a 20% rate, it will wind up a better investment than Nokia growing at 30% because the starting price is so much lower. Q: So, what are your projections? A: We see earnings growing at about 22% over the next five years. We estimate Motorola will earn $3.14 a share this year and $4.20 a share next, and that's well below the high estimate on the Street of $4.60 a share. Our 12-month price target is 175 a share.