Charlie Wolf is one of a rare breed of analyst who is willing to factor in his "new product assessment" into his forward projections, unlike the many sheeple analysts who are backward looking and extrapolate on backward history of the past 2 years to project future earnings.
What has occurred at NOK over the past 2 years is tantamount to a cleansing operation whereby both staffing and product lineup have been massively altered. That cleansing operation, which is now almost complete, has resulted in a streamlined operation with a novel and exceedingly competitive product lineup led by its WP's.
Everyone knows about the seasonality impact of Q1 for techs, especially smartphone techs, but it seems that only Wolf appreciates the notion that in NOK's case, a favourable trend in smartphones in NOK's mix, is likely to become exceedingly apparent via fast improving profit margins over the course of 2013...and may even become apparent in the seasonally weak Q!.
Should NOK Q1 profit margins show discernible improvement, which is almost a given, given the Q1 launching across many markets of the Lumia 620 (a potentially wildly successful product), the backward looking sheeple analysts will get their wake up call (safe strategy to be sure) but a stampede of investors will come running after NOK shares.
WP's, via NOK, provide a rare investing opportunity at current levels if one is correct in their assessment that WP's will attract a lot of consumer support. |
