No facts to back this up; however, on January 24th earnings call, Elop and his management team will have the visability of three weeks sales information on the China market, plus about two weeks in the India market and some of the worldwide placement program for the 920, 820 and the asher line and the 620. If you get the chance go into Nokia's site and you will find that there are hundreds of specialized phones that they still sell in the market. They have the low cost, medium and high end well covered. Assuming they are satisfying the customer, they have locked up the consumer for whatever new products come along in the future or at least a large portion of these future prospects.
Since the fourth quarter will now be behind them and apparently it was ahead of Plan, they will now be in a position to determine whether the dividend is appropriate based on how the cash flow numbers come in. Somewhere I read that many of their pensioners in Finland look to the Nokia Dividend to supplement their living costs, they will go out of their way to keep the populace happy in their own crib.
You should also realize that during this bad period when Nokia had to suffer the slings and arrows of the Short Community, there have already been two cuts in the dividend and my feeling is that they would like to reverse this course. With the information that will be available on the 24th, I'm sure they will try to turn this negative possibility around.
Prediction: The current dividend will stay the same and will be announced at the earnings call. Think about that, a good fourth quarter and hopefully a very strong performance in the Billion Plus markets in China and India in the beginning of the First Quarter of 2013. So, what do we have?, a great dividend plus good earnings and great potential going forward.
Assuming I'm correct, this stock could double after the earnings call. Once in a lifetime, Goldmine Stock. Talk to your investment advisor, your lady/guy and get on the train to help you get through some of the tough times ahead with the do nothing policies of our elected reps.
Sentiment: Strong Buy
The shorts couldn't get the tax raid in India to stick. It backfired actually.
Now they plant the old dividend will be cut story on a stock that has lead its group since 1995.
I can't guarentee anything, except a lot of unhappy shorts.
Just a thought.. If the price prior to earnings is about where it was last year When they announced the dividend (1/27/12)...The dividend should be kept..The announcment would be made perhaps at the earnings call... Perhaps with a little Hair cut (but kept... which is positive)...Longs that were buying in the last 6 months would have hit a home run ...The stock should then look to going to the $5-6 range until the next earnings call..I am long on nok
I only sold my jan calls at a near 600% profit and bought feb, April and jan 2014 calls. Plus I also bought 100 $4.50 jan 2014 calls in Zynga.
Nokia should have an amazing 2013. The groundwork is laid and now even the bankers can see it so its gonna upward for the whole year.
Sentiment: Strong Buy
Forgot to cover the effect of having Microsoft as a partner. Microsoft has over 400,000,000 Four Hundred Windows users. The newly announced Window 8 System has already garnered 60,000,000 Sixty Million Licenses.
This firm has been a leader in Operating Systems since they beat out IBM in the early eighties.We often hear that the Lumia is short on Apps. Think about the number of applications that have been developed over the years for the Windows Operating Systems. Many of these will come out of the woodwork in the months and years ahead and will be incorporated in the Lumia and other Nokia phones. I believe that Nokia tied in with a firm that works with the Windows Operating Systems and many of their accomplishments have been with large firms.
Nokia also gets a lot of financial assistance from Microsoft plus the fees that they receive from their various patent royalties from other phone manufacturers which I understand can amount to between $700,000,000 Seven Hundred Million Dollars and $1,000,000,000 Billion Dollars per year for several years into the future.
Nokia did fall behind in the past several years, but they are now up and running with the experience in various countries for manufacturing product as well as selling to these markets. Lots of potential in these various markets especially in the far east which is growing like weeds.
Nokia doesn't set the dividend until May, at a board meeting. At that point they will have not only this quarter but the following one as well on which to base their decision on the dividend. Why make that call after only 3 weeks visibility instead of 6 months?
No dividend news until May. That's when Nokia will declare it and set the payout.