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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (28845)	2/18/2003 12:54:47 AM
From: elmatador	Respond to of 74559

A caveat on conglomerates being good bet on R: Those guys that lost focus on their business and concentrated on the financial side of it: GE is the case in point, those may have a big problem on their hands and we have to be very careful with them. That because the managers never had to worry about the financial side of it, neither the financial side of it had to worry about the buts and bolts. Let me give you an example that illustrates this point. The reason why ERICY (albeit not being a conglomerate) is in the dumps is exactly by this reason. You think that ERICY is a mobile and telecom maker but it is only a arm of the two banks which are the minority owners but are the ones who really control the company through the A type B type shares' scheme The point I am trying to make is: It is more important to make money financing the deals than make money selling the stuff. Lets keep NOK shareholders thinking that the Finns know something that the Swedish don't, but the fact is that ERICY was just a vehicle for the two Swedish banks shareholders.