Selling Phones to Emerging Market Consumers


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An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.

By Liu-Yue (Louie) Lam, Co-Founder, Oxstone Capital Management,

Nok, Nokia – Finland, $10.21, 11/12/2010

Nokia is still the world’s largest cell phone maker. Its leading market share position (at 33%) helps it achieve economies of scale in low cost production through standardized features and equipment. The new CEO and additional senior management changes will seek to fuel new R&D to produce new products and better compete against Apple and RIM in the smart phone market.

Financially, Nokia is in good shape with positive net cash. It currently trades at the bottom of its 52 week price range and near multi-year (5+) lows. Nokia pays a very attractive bond-like yield of 3.8%, but with all the upside potential of a stock. Current valuation is reasonable at PEG Ratio of 1.31x and a forward P/E of 11.5x. Its standardized products allows for product efficiencies. With minimal capex requirement, Nokia is still a cash machine spinning off plenty of cash for increasing dividends or investing in new product opportunities.

Nokia remains a trusted brand name and has enormous opportunities to cater to the emerging market consumer markets across the globe. The long term structural weakness in the Euro will help spur increase sales through better competitive pricing.

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