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No. of Recommendations: 0
I don't think that the comparison between the Globalisation (or perhaps un-Globalisation) of Sonera and T. Rowe Price is a valid one. Fair enough, T. Rowe Price might not be a globalised company, but globalisation isn't necessary to ensure its survival. No matter how many advanced services Sonera can provide, unless it can go global, it simply won't be able to survive. Vodafone Airtouch already is the dominant player in the UK and US, and if it can acquire Mannesmann it will become the dominant player in Europe. Companies that big could deal with Sonera in seconds. Sonera might be dominant in Finland and Turkey etc. , but these are very small markets compared to the US, UK and "Euro zone" . I also disagree with your belief that valuation shouldn't be considered. If Intel (an extremely good company judged by the RM Ranker) was priced at $200 per share would the RM Portfolio be buying it now? Of course not, and I doubt that anyone would be able to advocate buying the stock at that price. If such an overpricing situation exists in Qualcomm (whether it does or doesn't is another matter), it would seem a little stupid to pour our 500 smackeroons of hard earned moolah into something that was overpriced. Clearly, as examples have shown, relative to sales of CDMA devices, Qualcomm and its $250 price target are getting a little ahead of themselves. That doesn't mean however, that either company is a bad investment, or that either won't become the next Microsoft, only that it wouldn't be appropriate to treat either as a potential buy.
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