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From Wireless Investor Newsletter;

COMMENTARY: WOW, what a run Nokia (NOK) has been on of late, almost
doubling in the last seven weeks alone. With Vodafone (VOD) in the
of its hostile takeover effort with Mannesmann AG's, and with RF Micro
Devices (RFMD) getting hit based on delays in a Korean order, Nokia has
clearly been the Wireless Investor Portfolio's latest all-star.

As many of you may recall, we set forth the reasons why we were bullish
Nokia back in our second issue on September 14, 1999. We also set
the reasons why we preferred Nokia over its European rival Ericsson
(ERICY). Our rationale set forth in that issue still holds true as we
still prefer Nokia over Ericsson. However, we are changing our view
somewhat as we don't believe that the Nokia versus Ericsson comparison
particularly helpful.

Given the explosive growth of the wireless sector, we think that both
Nokia and Ericsson will be the primary beneficiaries of the market
to concentrate around the industry leaders. With the top 3 handset
manufacturers (Nokia , Ericsson, and Motorola (MOT)) accounting for
60% of the global market share for phones, we believe that the gap
the large manufacturers and the smaller ones will continue to grow.
industry business model of using profits from selling large volume,
low-end handsets to fund research and development to produce high-end,
full-feature, high-margin models continues to favor the industry
as the market matures. While more difficult to judge, there are
economies of scale at work in the infrastructure markets in which
Ericsson, Nokia and Motorola are also the industry leaders. With Cisco
Systems (CSCO) hinting at an infrastructure alliance with Nokia and/or
Ericsson, a major competitive threat to both companies infrastructure
businesses is diminished.

Essentially, the exponential growth of wireless tells us that this is
a zero-sum market. Given market trends, we expect both Nokia and
to be primary beneficiaries. While not yet adding Ericsson or Motorola
our portfolio (we may soon), we do think that, with proper execution,
three companies will profit handsomely from the overall wireless market

Visit for a full listing of our
wireless portfolio and to review past issues of The Wireless Investor.
Thanks to those who have sent emails with comments and suggestions. We
will attempt to address many of them in future newsletters.

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