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

To: elmatador who wrote (24182)	3/11/2003 11:36:33 PM
From: Eric L	Respond to of 34857

Matador, << Swap networks division for SI or ERICY terminals divisions and concentrate on terminals. This is the script I am thinking it is going to be played. >> I seriously doubt that. Obviously everybody's infra division is taking it on the chin in this economy, and infra only vendors are getting hammered. That will not last forever. Nokia used to run with the pack of all that wanted to be #2 to Ericsson. They are starting to pull away. More than any of their competitors they have been able to continue to fund R&D in WCDMA, in EDGE, in All-IP, and they retain and continue to build a cash hoard from operations while putting solid earnings on the bottom line, paying a dividend, funding strong marketing, maintaining a strong credit rating, minimizing financing exposure, and leading several industry initiatives. When the infra tap turns on, and it will turn on, they are great position to continue to narrow the gap somewhat on Ericsson and pull further away from Alcatel, Siemens, Lucent, Nortel, and Motorola. Margins will restore as 3G volume builds. Being able to supply both infra and terminals while retaining good financial health is, IM, a significant competitive advantage and Nokia knows it. Divesting Nokia Networks would weaken the competitive advantage on the terminal side and Nokia knows it. As I say ... I seriously doubt that. Best, - Eric -