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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: Jim Oravetz who wrote (4728)	5/21/2001 8:19:52 AM
From: elmatador	Read Replies (1) \| Respond to of 5390

ERICSSON: SOME EFFECTS FROM RATIONALIZATION, BUY - REDEYE (News agency Direkt) -- Ericsson`s focus to improve company cash flow is already beginning to show results, according to research group Redeye, keeping the buy rating for the Ericsson share. The rationalization programs will improve one of Ericsson`s greatest problems, that is to say inefficiency. While the second quarter looks weak, demand will gradually improve in late fall of this year, Redeye wrote. After meeting with the company, Redeye wrote that there are already signs of results from some of the austerity measures, such as the back-to-profit program for the mobile phone unit. Ericsson`s efforts to centralize component inventories and R&D are also on track. Redeye also reported signs of some improvement in cash flow in April. Still, the most radical measures to boost cash flow are being implemented in the areas of customers invoicing and supplier debt. In all, despite some positive signs, there are no illusions of a positive surprise when Ericsson releases its second-quarter result in July, according to Redeye. The research company projects a second-quarter pretax loss of 5.7 billion kronor and sales of 60.2 billion kronor.