As on the other msg,
assume 80k yearly salary on each headcount.
It will have 2.5 billion reduction on expense.
Since NOK has 3.71 billion sahres; thus, it will have 67 cents/share contribution.
Plus, the phone business department was losing about 20 cents/share; thus, the deal will make 67+20=87 cents/shares.
If we don't count the loss on 20 cents, we just count 60 cents profit per year from the HERE, NSN, and Patents
Thus the earning will be 67+60=127 cents.
If we use PE=14, the share price should be 17.78
Sentiment: Strong Buy
80k yearly salary is way to high! I would say about a third if not less was making more then 50k. And those are the creatives that are going to get transferred to msft, all the rest of the 32,000 are being "retired" as they call it. I see it as they are retiring all the very low income manufacturers, so msft can get their own at a cheaper rate.
Gee, they also have no rent/office expenses for all of those employees. They also have no manufacturing costs for the phones. Oh wait, they also have no revenues from selling all those phones. Here is where your logic fails. If you want to say Nokia will no longer lose money on the devices unit, and take only the losses into account, you are fine. But to cherry pick expenses only and convert that into an increased market cap/ share price makes no sense.
lol that is the worst math ever and I am long Nokia and bullish on NSN.
You can't count the salary reduction and the loss both as gains. One reason they had a 20 cent loss was the salary.
50 cents earnings gets us to $10 with PE14....that is about where I think we will end up in 2015. That is still almost a 100% gain from where we are now.