Telefonaktiebolaget LM Ericsson (ADR) (ERIC)

talkingmonkey (24.97) Submitted: 12/07/07 11:18 AM : Start Price: $14.82 ERIC Score: -4.73

An efficient, well-run, and currently (11/07) very undervalued company that can claim some of the highest net and operating margins in it's industry. ERIC's only problem is that it's large cap brand that falls in and out of favor on a pretty regular basis. Which may not be a problem if you're looking for a "seasonal" trade, but it has been a lack luster performer for longs looking for safe big cap growth as it's valuation seems to have waxed and waned between fairly valued and completely undervalued over the past few years. Yep, when it's acting like it's typical self, this stock has nice consistent trading valleys without a lot of surprising high-growth momentum or channel breakouts. But, and this is a big but, just like a lot of good brands, ERIC has been totally beaten down and unfairly punished in 07. With a fair value around 41.00, it should be a good ride up once the market gets a clue.

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