High oil prices and their impact on the global economy are a major risk.
We believe the 21 percent discount to our target price should close through 2006.
At $41.29 per proven barrel and $111 per 1,000 barrels a day production, the price more than doubles recent deals. Clearly this is a strategic move.
We expect the emerging markets to form a higher proportion of Ericsson's business in 2006 and Ericsson will have to fight hard in these markets and pay the price of lower margins to maintain its market share lead.
Take profits after a very strong share price run.
We find that capital flows trends are once again moving against the dollar, which could prove fortuitous in providing yet another leg to this gold price rally.
We believe the company's share price is likely to consolidate near present levels as it absorbs its recent aggressive evaluation rating.
After the recent share price weakness we see an attractive entry opportunity now.