Are we in the middle of the cellular revolution? What is the promise of the Wireless Web? This week we take a look at troubled wireless titan Ericsson <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ERICY)") else Response.Write("(Nasdaq: ERICY)") end if %>.
Joe Masters (TMF Master) is bullish, while Chris Rugaber (TMF RFK) is shaking his head. You'll get a sample below -- click on the Bull and Bear links to dig into the complete Duel. Read the arguments, the rebuttals, and then vote for a winner. Might as well practice the process.
Bull Argument...
Frankly, it isn't easy being bullish on Ericsson <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ERICY)") else Response.Write("(Nasdaq: ERICY)") end if %> these days. With the stock down some 50% from its all-time high of $26.31 per share achieved back in early March of this year, it is very understandable how one can be discouraged with this company. However, this performance -- or lack thereof -- has not been uncharacteristic of many other stocks in the telecommunications sector this year.
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Bear Argument...
The bulk of the bear case for Ericsson is fairly predictable, but that doesn't make it any less valid. The Swedish mobile infrastructure and handset manufacturer is losing money hand-over-fist in its cell phone division, and while the company's handsets only account for about 20% of its business, gross mismanagement in that unit has pummeled the company's shares.
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Bull Argument »
