"Ericsson (NASDAQ: ERIC) has the 'Swedish blues'," jests global expert Yiannis Mostrous, noting the stock fell sharply after issuing a warning. Nevertheless, he remains bullish.

In his The Silk Road Investor, the adviser explains, "Ericsson issued a warning for its gross and operating margins for the third quarter, which fell to 35.6% (43.0% last quarter) and 12.9% (19.4% previously). Promptly, the stock tumbled 24%."

He contends, "Although this is a severe blow to the stock price, the company remains one of the long-term holdings in the global infrastructure area."

The reason? He suggests, "Wireless telecom remains one of the best long-term growth stories. The beauty is that this growth story is applicable to both developed and developing economies. Emerging markets, in particular, are important because they continue to build huge wireless networks, with China and India at the forefront."

"Investors continue to underestimate the growth potential at Ericsson (NASDAQ: ERIC)," says global analyst Yiannis Mostrous in The Silk Road Investor. He considers the stock a core holding.

The Sweden-based company develops and produces advanced systems and products for wired and mobile communications in public and private networks and produces mobile phones through a joint venture with Sony.

Mostrous notes, "The company operates in one of the most promising segments of the global economy, where the demands of bigger and better networks increase almost daily."

According to the advisor, "It's currently upgrading networks for more than 50 phone companies, with about 6 million customers signing up for faster mobile access each month globally." Industry experts, he points out, expect mobile subscribers to surpass 5 billion in the next five years.