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

To: DaveMG who wrote (996)	9/18/1998 12:37:00 PM
From: tero kuittinen	Read Replies (2) \| Respond to of 34857

It's also possible that since Nokia is still up by 100% this year and Qualcomm is down it's easier for Qualcomm to bounce. I've heard that the Lucent take-over rumor is currently creating extra interest in Qualcomm. I personally think that P/E ratio is a lot more useful measurement than the sales version. When you look at the sales, Motorola looks like a bargain - when you look at the P/E ratio the gruesome truth is revealed. I don't get this Lucent valuation - it's as big a mystery as the former Alcatel craze. Just a month ago either Fortune or Forbes named Alcatel as one of their top ten "buy and hold forever" stocks. Anybody who is now tempted to buy Alcatel should visit: alcatel.com and then contemplate the fact that Alcatel's global market share in handsets is around 3% and falling. Seven (7) models just for the European market. Seven. It's a veritable kennel: not one of these models is not a dog. That product line-up is one of the most extravagant vanity projects in recent European corporate history. Even Motorola with its big brand name and free-spending habits hasn't dared to make a smartphone - and Alcatel blithely shovels money into a Star Trek touch-screen PDA/phone combination that must have been ruinously expensive to bring to market. As far as I know, nobody is buying. Alcatel is facing the same predicament as Philips, Mitsubishi, Sagem et al: when you have poured hundreds of millions of dollars into a failed bid at becoming a household name in mobile telephones, how do you get out? The answer is: you don't. You keep throwing good money after bad and bleeding profit from your other divisions. Only when the losses are so massive that shareholders revolt can the write-off take place. Outside the big three Siemens and Sony are the only ones of the European/Asian GSM hopefuls that have any kind of consumer impact. Interesting test in the new "Mobil" magazine. Motorola's latest European GSM model scored 82 points... just four points above the new Benefon. Nokia scored in the nineties. Benefon is the weakest Finnish digital mobile phone company and what I'm wondering is this: if Motorola is struggling to beat the worst Finnish mobile phone company with its very latest model, are they really going to have the come-back some analysts have predicted? Tero