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: Puck who wrote (7757)	10/19/2000 11:40:45 AM
From: EJhonsa	Respond to of 34857

If next year the Euro has re-gained all the ground it has so far lost, which would require it to gain nearly 50%, but NOK's net profit is flat in Euro denominated terms, am I to be glad that in dollar terms their profit has increased 50%? Well, that depends on how much Nokia relies on markets which use currencies against which the Euro's gained ground. For example, if Nokia saw significant revenue growth in the U.S. for such a year with shipments increasing and ASPs rising, it could get completely wiped out by the strength in the Euro. So if Nokia's sales come primarily from the US and other countries with currencies that lost ground agains tthe Euro, you should be glad. On the other hand, if Nokia got most of its sales from European Union countries or countries with currencies that gained ground against the Euro, then it's definitely a reason for concern. As we all know, in Nokia's case, neither of these extremes would bring about the truth, as the company generates significant revenues from literally dozens of different countries. That's why, in years such as this one, where major flunctuations have taken place between the value of the Euro and the value of the currencies of other major markets where Nokia participates in, unless we're able to get a sales/profit breakdown for every major market Nokia's in, it's best to focus on unit shipment and market share growth more than anything else, both of which were exemplary. Eric