Tomorrow is Q3 earnings day for NOK.
The Reuters Report and others seem to be expecting the worst. Why are they still promoting the negative phone sales without MSFT context?
Low expectations could mean opportunity after the herd does its selling and then the shorts do their covering.
Also,
The fact that nobody is posting here recently is also a sign that the "retail" longs exited already IMHO.
Two easy questions:
(1) What will NOK do with the stash of cash?
(2) What is NOK going to do to generate superior competitive advantage and growth going forward, leveraging its remaining assets?
I do not think the story is over. Can it get more negative than right now? NOK 2.0 reflects my optimism toward this dynamic marketplace in coming years and NOK's strategic partnerships, cash, patents and reinvented R&D. I don't really care about the previous quarter.
Disclaimer: I could obviously be wrong due to too much caffeine, or other cognitive impairment.
Or I could be right, but uber high speed computer traders and hedge funds etc. could be valuing all this phoof and perception, playing us all in a shakedown, regardless of fundamentals.
.......................
EARNINGS POLL-Nokia seen hit by weak mobile sales, NSN slowdown
5:38 AM ET, 10/28/2013 - Reuters
* Q3 results due Oct. 29 at 1000 GMT * Net sales seen down 18 pct, mobile devices down 41 pct * NSN sales, margins seen falling HELSINKI, Oct 28 (Reuters) - Nokia's third-quarter results are expected to underscore dire conditions which prompted the company to sell its handset business to Microsoft, with analysts forecasting an 18 percent fall in net sales, according to a Reuters poll. Analysts on average expect quarterly sales of regular mobile phones to have fallen 41 percent from a year earlier to 1.4 billion euros ($1.9 billion), with a pickup in Lumia smartphone sales failing to make up for weakness at the cheaper end of the handset market. Nokia's telecom equipment unit, Nokia Solutions and Networks (NSN), is also expected to report a fall in sales as a business turnaround of the past year loses momentum. On average, analysts forecast NSN's quarterly sales down 18 percent from a year earlier at 2.86 billion euros and core profit down 29 percent at 228 million euros. With benefits from cost cuts petering out and key client Softbank largely finished with rolling out its high-speed network, analysts said NSN faces a more weakness ahead. "We believe that the main risk to Nokia over the coming few quarters is in weaker performance from NSN ... NSN performance has been driven by cost cuts and very strong performance with Softbank in Japan and T-Mobile in the U.S., both high margin customers that embarked in aggressive networks build-outs," Nordea analyst Sami Sarkamies said. He recently downgraded the shares to "sell" from a previous "buy" rating. Nokia bought out Siemens' stake in NSN in a deal that closed in August. It is expected to complete the sale of its handset business in the first quarter of 2014, after which NSN is due to account for around 90 percent of the company's overall sales. J.P. Morgan, in a research note on Monday, said NSN's margin was likely to fall to 7.1 percent from 9.1 percent a year earlier. Figures are in millions of euros, except for EPS and dividend in euros. |
