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

To: tero kuittinen who wrote (1393)	1/28/1999 12:13:00 AM
From: Wafa SHIHABI	Read Replies (1) \| Respond to of 34857

Nokia Corp. Dow Jones Newswires -- January 27, 1999 WSJE: Heard In Helsinki: Nokia May Ring Up More Gains By Gautam Naik and Almar Latour Staff Reporters Can Nokia's soaring stock continue to defy gravity? Many observers say: Yes. While Swedish archrival Ericsson struggles to regain its former glory, and Motorola of the U.S. prepares to launch a new line of mobile phones, Nokia appears untouchable. Shares of the Finnish maker of mobile phones have surged to 126 euros ($145.66) each, up nearly 3% on Wednesday and nearly 170% from October, when world stock markets declined. And many analysts say room exists for more gains. Of the 27 brokers who currently recommend the stock, 17 have the equivalent of a "strong buy" rating on Nokia's shares, according to I/B/E/S, which tracks analysts' estimates. Since November, at least half of all brokerage houses that follow Nokia have raised their earnings expectations for the company. Some of the gains might be short-term. Analysts are optimistic that Nokia will meet - and likely exceed - expectations when the company announces fourth-quarter and annual results on Friday. Those analysts cite strong phone sales during Christmas and bullish profit forecasts from Nokia's president and chief executive officer, Jorma Ollila. Consensus analyst projections have Nokia reporting 1998 profit of 2.63 euros a share. "They will probably beat official estimates," says Douglas P.E. Smith, an analyst at Salomon Smith Barney in London. Adds Lauri Rosendahl, an analyst for Aros Securities in Helsinki: "I think that the odds are that the stock will again go up on the report. The report will reflect Nokia's tremendous momentum in the fourth quarter, especially in relation to peers." Nokia is regarded as a premium stock. In terms of market capitalization, which stands at $80 billion or so, the Finnish manufacturer is Europe's biggest technology company. It has an estimated 27% market share in mobile handsets, which makes Nokia the biggest mobile-phone maker in the world. And while Nokia was quick to launch a new line of glitzy cellular phones, comparable efforts by Ericsson and Motorola are lagging behind their Finnish rival. But Nokia's respected management must tread carefully, partly because expectations are so high. In jittery times, even a small earnings shortfall can trigger a pounding of the stock. Shares of other telecommunications companies, such as Ericsson and Alcatel of France, already have experienced similar downturns. Nor is 1999 likely to be as spectacular a year as 1998. While Nokia's revenue from handset sales jumped an extraordinary 70% last year, the increase is expected to be a far-smaller 29% this year, an analyst says. Prices and margins also could come under increasing pressure. Indeed, the sales growth rate for wireless equipment, such as switches and base stations, is expected to fall to 15% to 20% over the next year or two, from the 25% to 30% level of the recent past, according to one projection. (Nokia gets one-third of its revenue from selling wireless gear.) Nokia is also sensitive to potential economic trouble in China, a major market. "If something goes wrong with China, something will go wrong with Nokia," warns Mr. Rosendahl. Still, he says, "it wouldn't be a long-term problem because the Chinese government appears willing to invest in mobile communications even in tumultuous times." Indeed, long-term, the explosive demand for wireless phones could continue to fuel the Nokia engine. Consider that, in December 1997, there were some 3.3 million net subscriber additions in Europe alone. In December 1998, however, the equivalent subscriber figure had soared to 6.9 million. Many of those subscribers own Nokia phones. Nokia also has built up other businesses. In two years, it has quietly signed upsome 140 customers - mainly phone carriers - for a new transmission technology known as Synchronous Digital Hierarchy, or SDH. And it is more aggressively pitching private radio networks to utilities and oil companies. "In this sort of economic climate, it is a rare company that is able to show revenue growth above 20% and expanding margins," says Mr. Smith of Salomon Smith Barney.

To: tero kuittinen who wrote (1393)	1/28/1999 6:42:00 PM
From: Sleeper	Read Replies (1) \| Respond to of 34857

Tero, where are you? On the eve of the much awaited earnings announcement by NOKIA (and the stock up 8+ today) there is not a word from you. I certainly hope your CDMA detractors have not sabotaged you and left the rest of us blind and uninformed. Please give us some idea of what the numbers will be tomorrow and your projections for the next quarter. Sleeper

To: tero kuittinen who wrote (1393)	1/30/1999 10:08:00 PM
From: charles meade	Respond to of 34857

Tero and others, what's the significance of the secondary offering of 120 million shares and the new stock option plan for management? Because Nokia does not make financial SEC filings, it's hard to get a sense for the impact. At the least, they would seem to be a negative for the stock price (which may have been reflected in Friday's market). Thanks for your insight. Charlie Meade