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

To: marginmike who wrote (936)	8/28/1998 10:26:00 AM
From: tero kuittinen	Read Replies (2) \| Respond to of 34857

The handset sales may be recession-proof up to a point - but the profits derived from them are not devaluation-proof. If South American currencies go, it's going to be a lot harder to make money there selling high tech equipment. That is why I think that Nokia's big proportion of sales in Europe and USA is good when weaker currencies are under attack. It's hard to see US dollar or Euro dropping dramatically in the near future... but very easy to see Latin currencies plummeting by 20-40%. That would poison both network and handset profit growth there, just like it has in Malaysia, Indonesia and Thailand. I don't think that European recovery hinges on China. Sustained growth in USA is much more important and USA & EU might be able to hold each other above the waterline even if Asia craters. Tero