If the fundamentals were strong this stock would still be in the $7's instead of the low $5's. It's priced where it should be based on performance. But on the plus side it's probably as low as it's going to get in the near term and should be bought for a trade. A move to the mid $6's would earn you a 20% gain. Just don't be afraid to pull the trigger on the sale. Don't ride it up and then ride it back down when another quarter comes in a little weak.
The ball is in Nokia's court. The only thing that will lift the share price is PERFORMANCE. Nokia has to execute on their strategy. Short term, watch the Euro. I expect this stock to grind higher from here but I do not expect dramatic moves.
Traditionally, at least as per the last year or so, the low-$5's is cheap for Nokia. It's a different company now than a year ago so looking further back is pointless. So on a TRADING BASIS, Nokia looks cheap. Would I marry my position? No. But buying for a trade, if you're willing to hold onto it for six months, could easily net you 20%. It only has to get to the low $6's for that to happen, and we've seen it happen time and time again.
The only thing Nokia is doing is licensing their brand for phones. Nokia is not designing, not manufacturing, and most importantly not spending a penny on the deal. Worst case for Nokia is they don't make anything on it. And since it will not have cost them anything...
That's a mighty big "IF." Nokia won't be making the devices so that famous Nokia quality we remember won't be a part of it. Nokia design? Nope. Foxconn design. Any revenue Nokia gets from this is a positive. But Nokia is not back in mobile. Just the name slapped on somebody else's phone. And that's a double-edged sword. If Foxconn stinks it up the Nokia brand will be tarnished.
"Replace" Apple?? And Android?? (I assume you meant Android and not Amazon)
I would love love love to try a Sailfish powered phone. But Sailfish faces the same hurdle as Windows Mobile; lack of apps.
Most of Jolla is made up of former Nokia folks. But alas, they have backed away from hardware and will concentrate on their software. That means somebody has to take a chance on building a hardware platform for them. Apple won't do it. Samsung has Tizen, so there is a chance those Tizen devices could run Sailfish, or do so with perhaps some very minor changes. But I don't see anybody stepping up like Jolla would need.
That was Jason Elop that made the sale. It's probably why he was brought in to begin with. Nokia may have wanted to sell the ENTIRE company to Microsoft. Elop is a former Microsoft exec so he has the connections. If selling D&S was the best deal he could make, he made a great one! Nobody would have bought D&S from Nokia now, what with Microsoft backing away from Windows Mobile like they are. Nokia got out of mobile at the last opportunity and IMHO they should stay out.
Oh, it's a smart move by Nokia for sure. Their brand still has value in mobile. And to leverage that brand without a capital investment is the ideal way to capitalize. But some folks are putting the cart waaaaaaaay before the horse when they proclaim that Nokia is back in mobile.
These phones MIGHT carry the Nokia brand but Nokia will have nothing to do with designing or manufacturing. And they are junky low-end devices.
Did you see how much AAPL was up yesterday vs how much it's down today? You might be entitled to a rebate on your tuition if your education tells you AAPL gave it all back.
Yonder comes Miss Rosie.
Now in the world did you know?
By the way she wears her apron,
And the clothes she wore.
Umbrella on her shoulder,
Piece of paper in her hand.
She come to see the governor.
She wants to free her man, Lord.
Nokia getting back into mobile is just rumors at this point. Some of us think it would be a terrible idea. Nokia sold D&S to Microsoft so they would have to rebuild the phone division from scratch. How many years would that take to get back to the quality they once had? Two, three years? More? And what profitability is there in the mobile game for anybody but Apple and Samsung? Those two account for over 95% of the profits in mobile. Windows Mobile is dead. Nokia's only chance is to jump into the already overcrowded Android arena. And a big part of why Nokia went with WM instead of Android was that they didn't want to go head to head with Samsung. Sammy is destroying HTC, Motorola, and everybody else in that game. Reentering mobile would be a disaster for Nokia, and when they just got out!
I have a Jawbone Up24 that monitors my sleep patterns. I have an Apple Watch as an appurtenance to my iPhone. Great for tracking workouts, plus I get notifications of incoming messages when I'm working out, even with my iPhone in a locker across the room. These things have their uses, but they are not the be-all and end-all of things. Limited audience, limited (but not completely insignificant) purpose.
I think a lot of investors have not come to terms with the fact that Nokia is an entirely different company then it was just a year ago. Network infrastructure is not a dynamic business. It's a slow and steady grind. When the stock gets hammered these folks grasp at any straw for a justification of their decision to hold their positions and ride it down.
Years ago I bought 2000 AAPL in my retirement account at the princely price of $24. I laughed myself sick when I brilliantly sold it at $37 six months later. I figured that iPod craze had run its course. 😳
Woulda Shoulda Coulda.