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Strategies & Market Trends : Value Investing

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From: Mr.Gogo11/16/2013 5:25:02 PM
   of 78740
 
I think Nokia has a lot of value going forward.
Stock is 8$
Cash is 3$ / share

They may give some of it as a dividend.
But if we look at it as owners the company can make about 2 billion $ in profit per year which is 0.57 $ per share.

If we don't have the cash it wold be 5$ / share that will produce 5.7$ /year which is about 10PE. I am almost not counting the revenue they may have from the maps business. There are only three maps companies left in the world - Google, Nokia and TomTom. TomTom and Google do their own products with their maps, but anyone else who wants to be truly independent would have to use Nokia's maps.

Their patent portfolio can produce a lot more than it has done before, because now they can push harder the other phone manufacturers (they cannot counter sue because they don't make any phones)

I think the maps can grow a lot. If they play their cards right they can make a lot of their maps business. Many services in the future will be based on maps.

The only thing that bothers me is the decline in revenue that they had in their network business. If this continues, there will be trouble. Does anyone have any opinion on this?

Good Investing,

Georgi
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