This is the second time in the last 3 quarters after the Microsoft deal was announced that Nokia has traded down in sympathy with Ericsson's lackluster results. That is to be expected since Ericsson is the wireless industry leader with more than 2x the revenue base of NSN as well as a $1B+ royalty income stream. The question for the new Nokia CEO is how does it differentiate itself from the industry leader sufficiently so that it gets a growth multiple?
"......Phone companies have limited budgets to spend on networks as competition weighs on prices and rivalry from Internet-based service providers such as Skype and WhatsApp eats into their revenue. Capital spending by communications-service providers will rise to $367 billion in 2019 from $340 billion in 2012, equal to growth of about 1 percent a year, Matt Walker, an analyst at research firm Ovum, said in a report last month.......
"...............As phone carriers curb network spending, Ericsson is expanding its services business, aiming to be a partner who runs and maintains everything from phone networks to computer systems, while offering consulting and software.
The market for services used by telecommunications carriers will grow by as much as 7 percent annually over the next three years, Ericsson forecast in November. It was worth as much as $273 billion in 2012, almost half of which was made up of carriers doing the tasks themselves, Ericsson says....."
...them) at all times, for all stocks, BUT along with a serious share buy back, a 1 for 2 or even 1 for 4 R/S could work out very well for NOK here. Would be very nice to get share count below one billion. And again, while the idiots will not grasp this, a R/S is really price neutral and will not of itself send share value higher or lower. It would make NOK harder to manipulate though.
I stand by my assertions, and you offer no valid counter arguments that are capable of changing my opinion. Cheers.
While you're on the horn with them please mention this jeffreber44 spammer. His proclamations have cost me a small fortune! I loaded up on the "4/15/2014 done deal", the "we're up in the morning" call and frankly I'm concerned about his pending "guarantee" call. I lost my rent money on this jackrabbit! Thanks pal...
At $4 per share, Nokia will have enough net cash on hand to buy out the entire float and still keep the remaining businesses debt free...so hmm no
The saying goes that the only thing guaranteed is death and taxes. Everything else comes down to risk and reward. You pays your money and takes your chances honey. Continued good luck to all us Nokia longs.
I am hoping for the dividend to be restored shortly after the deal is done. 3% would be a icing on the cake after my stock gains holding Nokia.
The big news here isn't that they have just forced another vendor to capitulate to extortion.
Significantly this is the first cross licensing agreement they have signed since the royalty on Windows Phone went to $0. It is also the first announcement they have made that doesn't specify that the new partner will be making net payments to them.
You also left out the April 30th 2012 deal where MSFT invested $300 million in Barnes and Noble after paying them $310 million to settle the suit they brought against BKS for infringement of unnamed I.P. on March 21st.
No bad news here. Nokia wants to make a profit off their work. Now that the Chinese are looking to make money NSN should become a powerhouse.
Posted on 10 April 2014 by Martha DeGrasse
ZTE is signaling a shift in strategy that could be good news for its competitors. The Chinese maker of network infrastructure and smartphones said today that it has boosted profits by turning down low-margin contracts. ZTE was referring to infrastructure projects outside China.
For years ZTE and its larger Chinese rival Huawei have pressured European competitors Ericsson, Alcatel-Lucent and NSN with low bids that in some cases did not even leave room for a profit margin. Here in the United States, Cisco has felt the pressure of competition from ZTE and Huawei. Like Cisco, ZTE is a major supplier of routers and switches to network operators.
Today ZTE said that first quarter profits will be at least $68 million, more than double last year’s amount. The company says its change in strategy in one big reason for the improvement. After losing money in 2012, ZTE has become less aggressive in its bidding for contracts. One result of the new policy has been a decline in revenue, but the company is returning to profitability.
ZTE maintains a very significant market share in China and India, two of the largest and fastest-growing markets for infrastructure equipment vendors. The company has lagged some of its competitors in LTE, but has a very strong presence in China’s 3G networks.
Analysts expect ZTE’s growth outside China to depend on smaller contracts in developing markets in the near term. Markets like Nigeria and Namibia are a focus for ZTE
If you shorted al the way down from $65 you should be wealthy and happy. Why don't you go troll around the Riviera for awhile and look for a nice troll hole to curl up into.