Published August 22, 2013 | By Nokia - Press Release
Nokia comments on Moody's credit rating announcement
Espoo, Finland - Timo Ihamuotila, Nokia's Executive Vice President and CFO, comments on today's rating decision from Moody's:
"We are pleased that the strong cash position we have maintained throughout our transition has enabled us to take advantage of an opportunity to acquire full ownership of NSN, whose financial performance has strengthened markedly in recent quarters. In Devices & Services, we are pleased with the Lumia volume growth we delivered in the first half of this year and are looking forward to driving further share gains for the ecosystem. With these efforts our target is to return our Devices & Services business to sustainable cash generation as soon as possible."
At the end of the second quarter 2013 and prior to the closing of the NSN transaction, Nokia Group had gross cash of EUR 9.5 billion and net cash of EUR 4.1 billion.
Nokia notes that it also has access to additional liquidity via a revolving credit facility of EUR 1.5 billion, which is entirely undrawn and available to the company through March 2016. Nokia Siemens Networks also has a EUR 750 million revolving credit facility that is entirely undrawn and available through June 2015.
Sentiment: Strong Buy
And what would you expect Nokia to say, other then to protect their strategy? The real issue facing Nokia is the continuing onslaught of competitive devices, they are everywhere, everywhere that is except in the pockets of consumers. They may make it with smartphones, but it will take a much different marketing strategy, ATT and Verizon have a lot of suppliers to "satisfy." And even if they had knowledgeable staff (they don't) it would be a challenge for Nokia to stand out, four years ago, there were, in fact differences, now very much less so. Price will now be the determinant, and as price comes down, so will margins, just a fact of life.
I have suggested holding from the mid $4 range on down and in retrospect, should have sold. But if the stock does get down to $3.50 (any day now?), I would probably shift gears and go back in to buy stock.
If push comes to shove Nokia could get a loan from Microsoft just like Apple did! Moody's credit rating means nothing when you have a partnership with Microsoft that can lend a helping hand.
there was no loan and, since there wasn't one, apple also never paid msft any money back. but this silly idea never goes away.
apple filed a suit against msft. that's how apple got the money you are calling a loan. jobs threatened to sue and msft settled out of court by agreeing to buy stock.
since msft has already agreed to give nokia $5 billion on top of the money they gave them at the time of the original partnership agreement chances are the lawsuit idea won't work. what if msft sues to get their money back? :-D
but there's no reason they can't file a suit. anybody can. maybe you should sue msft. do you have a dollar figure in mind? how much do you think nokia should sue for and then how much less should they settle for?
Seriously? Softy is gonna give Nokia a loan? Is that why Eflop diluted us over 300 million shares instead of using the buyback plan to buy back over 500 million shares when we were under $2?
Softy will watch nokia die if this idiot Eflop is at the wheel. Softy cares so much they're bleeding nokia by Charging hefty licensing fees for an inferior POS OS nobody wants when android is free. Only an Eflop would pay that kind of money to softy when softy is desperate for nokia to get them into mobile.
Someone needs to fire Eflop fast before he destroys what's left of nokia.
Sentiment: Strong Buy
Nokia is not in as bad a shape as these sell side analysts would have you believe. Their bonds are selling for $95+. As long as Lumia growth continues per plan and NSN remains at least stable Nokia is on target to reach profitability no later than Q1 2014.