Ericsson LM Telephone
ERIC-Q
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About Ericsson LM Telephone (ERIC-Q)
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Large Swedish manufacturer of capital goods for telcom industry. Strong balance sheet. Touch business, low margin. There are many players that are well capitalized. Emerging markets are pressuring telcos to use their own capital products producers.
Large Swedish manufacturer of capital goods for telcom industry. Strong balance sheet. Touch business, low margin. There are many players that are well capitalized. Emerging markets are pressuring telcos to use their own capital products producers.
Over the next few years, you will see more and more consolidation in the telecom and cable industry. People that use mobile phones and Internet at home want more and more data, and want it faster and faster. Growth in video is growing very rapidly, particularly on the mobile side. This company basically sells all the plumbing to make all that happen. Stock has been a laggard, only up 10% in the last 12 months. However, from a capital spending standpoint, the outlook is quite strong
Over the next few years, you will see more and more consolidation in the telecom and cable industry. People that use mobile phones and Internet at home want more and more data, and want it faster and faster. Growth in video is growing very rapidly, particularly on the mobile side. This company basically sells all the plumbing to make all that happen. Stock has been a laggard, only up 10% in the last 12 months. However, from a capital spending standpoint, the outlook is quite strong
Although this is more of a value play than a growth play, it might now be migrating to a growthier outlook. Not involved in the telecom carriers because he sees a big increase in the level of investment that they are going to have to make. If there is one company that is extremely well exposed to that, it is this one. A dominant player and have leading technology. As carriers have to increase their spending, they recognize that this company’s technology is superior and this company will start to win more of that business. He can see a potential for improvement in their growth rate, and more importantly, improvement in margins.
Although this is more of a value play than a growth play, it might now be migrating to a growthier outlook. Not involved in the telecom carriers because he sees a big increase in the level of investment that they are going to have to make. If there is one company that is extremely well exposed to that, it is this one. A dominant player and have leading technology. As carriers have to increase their spending, they recognize that this company’s technology is superior and this company will start to win more of that business. He can see a potential for improvement in their growth rate, and more importantly, improvement in margins.
Great company, great products. Lots of consolidation in the industry. In a very good position, had a decent recovery. Valuations are stretched but prospects for growth are there. May still be some upside. Good quality company.
Great company, great products. Lots of consolidation in the industry. In a very good position, had a decent recovery. Valuations are stretched but prospects for growth are there. May still be some upside. Good quality company.
Telecom equipment guys have been in a very stable range for the better part of 12 years. Now is the time to be in equipment stocks. Has been a tremendous amount of under spending. This company is in the sweet spot of where the spending should be. Apple (AAPL-Q) has been receiving a lot of subsidies to get people to take a contract but thinks this is now over. (See Top Picks.)
Telecom equipment guys have been in a very stable range for the better part of 12 years. Now is the time to be in equipment stocks. Has been a tremendous amount of under spending. This company is in the sweet spot of where the spending should be. Apple (AAPL-Q) has been receiving a lot of subsidies to get people to take a contract but thinks this is now over. (See Top Picks.)
Used to own many years ago. Once you start competing with the Chinese companies, your margins are going to go down. They are not as motivated by profits. Doesn’t see room for improvement in margin side.
Used to own many years ago. Once you start competing with the Chinese companies, your margins are going to go down. They are not as motivated by profits. Doesn’t see room for improvement in margin side.
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