Guys they are buying back the former owner's shares, $13 million worth. This is many more shares than any insiders could buy. All shareholders benefit from this.
Using their cash to buyback shares means capex/debt is not a concern, and with such a young company, buybacks seem better than dividends in the long run. Their pe is extremely low.
This company is 5 years old, the age when most companies fail, and they are hugely profitable with low share count, and they have new product to roll out to get their revenue trajectory back on track.
The CEO has stated in the last earnings call that revenue is going to increase double digits next year with strong profits.
I am interested in any negative leanings as I don't see any.
Everyone needs to read the IPO public offering docs submitted to SEC.
I bought then sold for a small loss realizing that 80% of the soon to be outstanding shares are on lockup.
When you add up the lockup shares and the 20m options etc, the total shares are going to be approx 100m. The options are in the the $5 to $7 range. I believe this is the main reason that the IPO price did not hold. The market will want to see some profits before they allow the options to be profitable.
$200m to run the company and $800m to insiders seems lopsided to me. If anyone sees this differently please explain. I like what the company is doing but the lockup eventually will drive the pps down maybe to $5. I will continue to watch and find a rentry point in about 6 months.
When you see so much money being paid to insider options and lockup, it is not a good sign.
I don't think so.
The CEO on cnbc seems to have had too much coffee this morning, he comes across as a typical executive who doesn't know how to speak to the users of his platform, more like he is speaking at an internet conference junket.
I doubt the 3 panelists (Cramer etc) understood a word he said as they all looked puzzled and he would not give direct answers to direct questions, a little suspicious.
Wall St wants us to pay top dollar on a wing and a prayer, not today. Goldman Sachs will have to get one of their cronies to support the stock so they can bail effectively. Judging by the $45 open I doubt this is retail buying at this price so GS friends are doing their part which is losing money to help their buddy.
Sorry, am a little tired of these over hyped up companies. Let's see what the price is 1 month from now.
I believe Qualcomm makes about $6 Billion in royalties from IP per year. So it is not out of the question for Nokia to have similar results eventually.
Did anyone catch this on the call ?
Nokia has $11B Euro or $15 Billion USD in net operating losses shielded from future taxation.
Future tax rate is predicted to be about 20% in Finland. This adds $5Billion USD in value to Nokias market cap. Nokia will not be paying any Finnish tax for probably 5 years minimum at a guess.
The so what of this is that this points to Nokia as being a possible buyout candidate to capture these NOL's and of course benefit from this. This is just my take on this, we need to see what the analysts with credibility make of this fact. I will also review the call transcript on this when it comes out later.
$1100. Had more, but sold some on the rise at 5.50 and 6.50.
October is almost here, funds sell their winners to lock in profits and sell their losers for tax loss benefit.
Both reasons for selling accomplish the end of year window dressing needed. So no matter how you look at it, the pressure this time of the year is to the downside. In mid November the selling will be done and the buying begins.
The sell in May did not happen but I believe the October effect remains.
I don't doubt for a minute that what you say could be true.
It is called a "forward pucrchasing contract ". John Malone did the same thing when he was trying to get the extra 10% shares outstanding to gain control of Siriusxm. He paid an outfit to buy below a predetermined price which Malone would then receive at a later convenient time. So for wall st this is probably done all the time. The key was that Malone didn't want anyone to know that he was buying behind the scenes to keep the pps low.
Maybe Nokia had too many other issues to contend with and had other innovative things like 41mp that they thought their time was better spent on.
In addition, looking at it from another angle maybe Nokia set a trap for sammy 2 years ago on the bendable technology and they took the bait, now Nokia is in a position to collect on this........ if they have a patent.
Fyi, I have paired down my holdings considerably to about 20% of my original 40k to 60k shares. I still believe in Nokia but like others there are too many unknowns to stay fully invested not to mention macro conditions that we typically have this time of year. In November, after earnings will be a good time to begin accumulating once more. So my sentiment is hold, need to protect gains and take a rest.
Nokia doesn't have to payout a lot of dividend to support the current pps.
When the dust settles they will have $10 Billion USD net cash. If they only pass out $1B of that, it will be 0.27 per share. At a 4% yield this would support a pps of $6.75. That might be why the price is hovering in this area until news comes out about more developments.
If they give $1.5B as an initial pain and suffering payout , that would be .405 and would support a pps of 8.10 with a 5% yield. The numbers are there and they look good.
So yes, with all that cash, I am sure the funds are loading up for what is to come.
At the time the deal was made Nokia had 2 full months of the 3rd qtr under their belt. They knew exactly how many Lumias were sold as did Msft because they activate them. If the growth was strong and they could see a breakeven point coming soon, I am sure they would have just asked Msft for a bridge loan, but they didn't, their decision was to sell, they must have believed that any additional loans would become debt that they could not pay back quick enough to keep a decent investment grade rating. Rather than go further into debt and possibly bankruptcy and then sell the business for a song they opted out now.
I can only wonder if Nokia put the pressure on Msft to make an offer with a threat to move to android, some of this has already been discussed in articles.
I want to see the checks coming in from everywhere for royalties on their 41 Mp and software.
You will notice at times the stock traded at the .005 cent level which should not be allowed, my understanding is that only sub 1 dollar stocks could do that, but hey, the mm's seem to be able to do what they want whenever they want.
It could be grid lock between buy and ask with a 1cent spread. So the mm continues to trade at the 1/2 cent level which no one else can do. So what he or she is doing is selling to themselves or to another market maker thru and exhange that pays them rebates per share traded. Yes, believe it or not exchanges will pay you to trade thru their exchange.
So when there is a high volume trading stock like Nokia and gridlock appears, this is a convenient time for mm's to continue making money on phantom trades.
From Nokia's press release (there were 2), it reads that Euro 5.44B in cash is payable at closing. So we get this up front. This may be one of those deferred assets where Nokia will allocate the sales and profits from the patent money spread over the 10 years, while the Euro 1.6B in cash remains in their accounts. That is possibly why they are booking a gain on only a portion of the sales. I am sure this must save them tax by not taking the full hit upfront.
ESPOO, Finland – Nokia Corporation today announced that it has signed an agreement to enter into a transaction whereby Nokia will sell substantially all of its Devices & Services business and licence its patents to Microsoft for EUR 5.44 billion in cash, payable at closing. Nokia expects to book a gain on sale of approximately EUR 3.2 billion, and expects the transaction to be significantly accretive to earnings
I believe that the Nokia brand will be on the Asha series of (feature) phones and the dumbphones. The Lumia brand will have a Msft brand on it. After 2 years, Nokia can use the brand on any phones they may make if they decide to get back into the business. Read the full report at Nokia website financials.
Reading some of these posts tonight it appears that Nokia has more pps appreciation coming.
My impression was that Helsinki was taking the lead role for a change. I thought this was a great positive as I don't remember this ever happening before. Their optimism will minimize any price manipulation to the downside just for the sake of volatility to scare retial out of their shares.
Here is a fine example of how either a research analyst was just dead wrong or was manipulating public opinion. Bernstein Research were the one's who canned Nokia not 2 weeks ago, sending retail away from this stock. Ferragu said "Nokia was destined to fail" and "Lack of consumer interest for Windows based phones".
Fast forward to today. Bernstein is in damage control mode backpeddling or justifying what they said weeks ago about Nokia but using a Msft article as a vehicle to do it in.
Read the paragraph below, have you ever read such a contrived retraction, such a piece of work. I can't imagine any research outfit embarassing themselves more than this company has. Will anyone ever take them seriously again ? Did they know what they were doing when they panned Nokia ? It is very embarassing when you get caught on the wrong side by design or bad luck. Saw this same kind of thing with SiriusXM detractors for 4 years ongoing. Nice, they upped their target on Msft and at the same time said the deal was "incrementally negative". Doublespeak ? What ??????
Quote......." Today, Bernstein Research's Mark Moerdler reiterates an Outperform rating, and a $41 price target,(for Msft) writing that the deal is “incrementally negative” for Microsoft, but that it really comes down to just one thing: “Microsoft acquired Nokia to assure themselves a position in the mobile phone market in order to protect their consumer Windows business (~$6.8B in FY 2013) and to a much lesser extent their corporate Windows business.”
The boys at CNBC would love to get this guy on their show, would not be pretty, CNBC don't like MSFT or Nok.
There are many reasons that it may not look like a short squeeze, the analysts that are on the wrong side of the trade are probably shorting more as this rises, you may never see a change in short numbers. Idiots remain idiots. Would like to know how many naked short shares the mm had to sell to fill the buy orders, they must be in a deep hole. If they can make the price drop, it may save some of their #$%$$#% but the sting will remain.
Whether you think this is a fantasy or not doesn't matter, the money in the bank says it is not, and thanks for the compliment, I did earn it. Are you an MM ?
The talking heads at CNBC were only too happy to scoff at Nokia every time it appeared they might be coming back with help from their Lumia line of phones. Can't tell you how many times I was embarassed by their snickering on the show every time Nokia was mentioned, such immature and childish behaviour shows great arrogance. The media was having a lot of fun talking up Apple making out like no other phone company existed in the entire world.
Well it is the mm, crooked analysts, and crooked investment house's turn in the barrel. This is what happens when the analysts and the media begin to actually believe the BS&%$# that they spread. I have gotten used to runups then corrections over the years and have been patient and have done well.
Been buying from 2 years ago at 5 all the way down to 1.73 and bought all the way up on the rise, took small profits here and there only to buy back in, am long not a trader. In this situation I had a very large number of shares and have been very slowly selling into this rally. I still have a significant amount left and am not worried about any sideways or downward movement as the amount I have made and put in the bank is safe from wall st., and is acting like a large buffer.
The analysts did not learn their lesson with VW, thanks to a second mistake by the mm's and analysts, we retail shareholders have been given a great opportunity to invest in Nokia.
So when you talk of possible retaliation by wall st., I say "bring it on", they did it to themselves, any serious downward correction will be met with massive buying, any lies they throw at Nokia will not stick to the wall, they have been exposed.