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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (47618)	10/7/2001 9:42:14 PM
From: techreports	Read Replies (2) \| Respond to of 54805

Incorrect, tech. Actually, correct in one sense only, i.e., carriers do not want to finance carriers. But Nokia and others recognize that they are often the only source of infra financing. As of the end of 2000, Nokia had committed to EUR$3.6bn in network financing for 3G networks. The three biggest 3G loan commitments are in Europe. One of them is with Hutchison UK, a big risk because it doesn't even have a network yet. Carranza2, that was the past. More important to look at the future. Will Nokia and others finance carriers today and for the next 12 months? Probably not. Also remember that Europe was like 6 to 8 months behind the US when it came to the down-turn. It would make sense for Qualcomm to start now, because everyone else is scared and can't. GE invested money in Asia during the Asian crisis while others were running. Many other companies have learned from this and Jack W. says there is less value right now. You refer to "qcom's overvaluation" as if it were fact. Imo, that puts the burden on you to substantiate your allegation. Feel free to fire when ready; I've got my calculator fully charged and have put on my valuationist costume. Just look at the multiple Qualcomm gets compared to the other wireless companies. Oh, but Qualcomm deserves a higher multiple, right? If that's the case, then the market already recognizes this and hence buying Qualcomm at today's prices is a bad idea, because it is already discounting that Qualcomm is a great company.