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Technology Stocks : Nokia Corp. (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: Cautious_Optimist who wrote (8941)	8/13/2013 1:34:27 PM
From: Eric L	1 Recommendation Recommended By zax Read Replies (1) \| Respond to of 9255

The Wet Android Dream ... << What do you all think would happen to the share price if NOK announced... It was going to offer android on the same hardware?? >> Who cares other than some Android nimrods (and I include Bernstein's Pierre Ferragu¹ in that basket)? ¹ In late June with NOK at at $3.81, Pierre reiterated an underperform rating on Nokia (NOK) with a $1.95 price target and concluded that Nokia would have to “take the pill [adopting Google‘s (GOOG) Android software pill] before they cannot afford to do so anymore.” "The company is facing two structural challenges: its exposure to the disappearing feature phone market and the lack of traction of Windows phones. Both could cost Nokia a lot of cash in the near term, in restructuring, marketing / distribution support, and operational losses, which means it could be too late to address the problem in a couple of years. From that perspective, a decision concerning a new platform strategy appears urgent. Better to take the pill before one cannot afford to do so anymore. We wouldn’t be surprised to see Nokia adopting Android as its new low-end platform by year end." It simply is not going to happen. Nokia is not about to field a range of low end smartphones powered by MediaTek processors running Android 2.x Gingerbread OS like its Indian or Shenzhen competitors that produce 'cheap' (not just inexpensive) branded or whitebox smartphones that retail at $55 to $95 collectively selling in very large quantities at little, no, or negative profit. << What would merely a rumor be worth?? >> Not much although a trader might grab a short term gain ... or not. << This is still a speculative investment. >> There is certainly risk attendant. That risk is very well documented in the annual 20-F SEC filing. There is also an adequate amount of upside potential. Each individual needs to evaluate and weigh the risk/reward balance to determine if it fits their own investment goals and risk adversity. At the very least patience and confidence in management and the strategic track they run on and patience is required. << With raw value at the current share price but that ends one day as the stock rises. >> The NOK/NOK1V share price will rise and so will Nokia's value when Devices and Services achieves IFRS profitability and will continue to rise if they demonstrate that they can sustain and grow that profitability and grow cash generation. Anyone that thinks Nokia can't achieve that in the medium term should not consider an investment In order for that to happen they need to remain highly focused and gain Windows Phone scale to offset the investment they have made and continue to make in jointly building a viable 3rd ecosystem. That won't happen if they dilute their efforts by fielding an Android range. Then, of course, there is the agreement with Microsoft and the manifold benefits Nokia acrues from it. - Eric -