 Good day, fellow investors. One of the sectors I have been looking into is the 5G sector. We have looked at Qualcomm. I couldn't have known that Apple will settle, so I was looking at the risks. This was a reward. It materialized, so I'm happy for Qualcomm investors. I'm not sad that I missed the boat or something. Simply didn't fit my risk reward long term and this is my strategy and I'll stick to it. However, today I'm going to talk about other 5G opportunities. We're going to dig into Nokia. We're going to discuss Ericsson and then I'm going to talk about Ericsson's subsidiary that's offering same exposure to 5G as Ericsson and Nokia, but offers a 13% yearly dividend yield, which is something crazy and I think you will be excited about it. There's a little caveat, but I'll talk about that later. Let's start with Nokia. So, Nokia, it's a stock that I discussed already on this channel a year or something ago. I made a positive model about their earnings and came to a sum of present values at a 10% discount with a value of 4.5 euros. So, the plan is for Nokia, everybody is accepted about 5G, but the plan is that there will be a 30 billion cake related to spending on 5G in 2025. If Nokia gets 20% of market share, it boils down to revenues of 6 billion, so hopefully 600 million in profits. That doesn't really move the needle on a 32 billion dollar market cap. And since I made the video last year, also Nokia didn't go anywhere, also over the last three years, except for the dividend. Actually, it didn't go anywhere for 20 years, but that was a different company. And just as I was writing this up, Nokia stock dropped 5% on Goldman's downgrade due to competition from Samsung and Ericsson. However, Nokia still bets on 5G. They hope to double their earnings by 2020, not in 2019-2020, and then increase their dividend. But that still is then, if they make 40 cents per share, that's still a price earnings ratio of what? 13, and that's still not that cheap as there is unclear visibility on what is beyond 2020. What will be the prices? What will be the margins on 5G application? What will be the technology, etc. So going back to my model, I really don't know, okay, earnings, let's say 40 cents in 2020, but I don't know whether it will be again 40, 45 cents in 2023 or 20 cents. Will there be a slowdown in spending, delays in application of 5G? There is a lot of capex to develop the technology, so really a lot of uncertainty and not really a value investment. It might do good, but it's unlikely and I see it as really okay, already fairly priced for what might happen. A P-Ratio for 13 for me simply isn't cheap. If it would be a 2020 forward P-Ratio 5, then I might look at it. Now simply isn't cheap enough. Let's see Ericsson. Ericsson, similar situation. They didn't grow for five, six years and just in 2018 it's the first time since 2013 that they have reached organic growth. So you see, okay, telephones, investing, these capex cycles really last long, but when they are slowing down, it's a difficult environment. The competition is fierce and the upside isn't really stellar. You see 20 targets, no growth in sales, just a big improvement in margins that should lead to high profits. However, they are confident in reaching 2020 and 2022 targets, but that depends on what the market will do, where will the 5G Internet of Things market be and it's again a long shot. Like Nokia, it's already expensive. The dividend yield is just 1.13% and it's too much risk to chase maybe a dividend yield of 4% or 5% in 2019. There are much better investments out there. So forward price on Ericsson 23 maybe it will go like Nokia 213 in 2020, 2022 and that's simply too risky and I'll show you why it is too risky because if you wish for 5G exposure, the key is to look for those companies that are not on the radar of anyone, offer you the same upside but which much less risk, much higher yields. I have found Ericsson subsidiary offering a 13% dividend yield, same exposure to 5G, much less risk because they don't have the capex and things like that. Let me show you. So there is a company called Ericsson Nikola Tesla. It is from Croatia and they distribute and make products for Ericsson. Ericsson owns 49% of the company. It has been like that since ever, 20 years, something like that. This is Ericsson Nikola Tesla's stock. I was fortunate to buy it somewhere in 2002. The stock was trading at 300 or 280. The dividend was 100 so I bought it with a 33% dividend yield and I thought I could live with a 33% dividend yield. The market saw it became exuberant in 2007 as global investors became exuberant about frontier markets. The stock went about 4000. I sold about 3000 much earlier but okay and after 2009 the stock fluctuated between 800 and 1500 but the business remained the same. It kept paying huge dividends but the stock drifted as nobody cares about Croatian stocks, Croatian market but the company is continuing to work doing what they have been doing since ever. What are they doing? They are simply selling Ericsson's equipment, okay working for Ericsson, developing but also selling that in countries where no Nokia wants to go, nobody from Sweden wants to go install something in Moldavia, Yugoslavia, Bosnia Herzegovina, Uzbekistan, Kazakhstan, Africa and Ericsson Nikola Tesla with the hereditary of Yugoslavia that was an independent state, connections, business connections with all those countries and they have been developing their infrastructure for the past 30, 40, 50, 60 or 50 years probably and they have this let's say intangible business connections that Ericsson uses to make money, the margins are much more healthier and as demand grows for 5G also their cycle will again explode like it did in 2012 where the profits were much, much higher. Let me show you the dividends. So I have looked for the dividends over the last 10 years. Those are volatile depending on the cycle well the company is free G development was really good for G a little bit less but you can see that the average dividend over the last 10 years was 145 this is in Croatian Kunas but okay and the stock price now is 1090 so what that's a yield of 12-13% and as the 5G sector gets rolling I think Ericsson Nikola Tesla will again have a positive boost and we might see again dividends of 150-200 which would be 20% on the current market price. A little bit on the issues the volume is really low you have to take a plane open an account in Croatia buy stocks directly on the market which again includes a little bit of fuss but if you want something exotic an exposure to 5G I think this is very very interesting why it's very interesting let me show you this is the faculty of electrical engineering and computing in Croatia. I have had in my high school about four or five friends that went there I went to study economics we used to go to mathematical competitions together. One works at MIT now the other works at Facebook we have one at Google at Apple and Pricewater Waterhouse and Cooper's in Europe so it's an amazing university Ericsson is sourcing their workers from there those who want to stay in Croatia so if you want a cheap engineering education from an amazing university that practically guarantees you employment wherever you want you should go to study to Croatia. The yearly fee is a little bit high when compared to MIT it is about 1,100 euros that's 1,300 dollars per year so four year education is very expensive yes I know you would end up at five six thousand dollars so compare that to the other similar universities in the world I would call it very very expensive so if there is someone who knows someone who wants to study and don't get into a 200,000 dollar debt after four years and have a great education you might want to come to Croatia the only caveat is you have to learn Croatian as with the stock the only caveat is you have to go to Croatia open an account and then slowly accumulate over time because the volume isn't really great but you can get to a position of a million dollars I think over a few months as for me if I have to invest in 5G for now I would invest in Ericsson if there is a postponement postponement in time when those countries cis countries Balkans etc implement 5G in comparison to other countries like US Australia Japan and so so the benefits might be delayed a year or two I'll keep watching and if I have extra money that okay I think it's a good investment I think already now it's a good investment but they expect the dividends of the stock price might fall and it's all speculators on the stock market in Croatia so it might fall more and I'll see in the next years I'll follow the stock a little bit I always keep an eye on the Croatian market but just an interesting idea to see okay if you look for opportunities around the world you might find them and that's what I am doing thank you for watching looking forward to comments on this interesting topic and I'll see you in the next video