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If You believe in Nokia When Should You Invest in Them? - MSFT, NOK - Foolish Blogging Network
If You believe in Nokia When Should You Invest in Them? - MSFT, NOK - Foolish Blogging Network
Wouldnt surprise me to see Microsoft buy it once its gets nearer to collapse (and cheaper).
I'd bet Nokia is in bankruptcy by Christmas.
Nokia has ?4.9 billion of net cash on their balance sheet.
They burned ?1.5 billion in the past year, probably the worst year in the history of the company
Within that, this last "disastrous" quarter they burned ?700 million in cash
Even if Nokia has no recovery and continues to burn money at these rates, it has anywhere from 2-3 years of gas in the tank
Sure lets say it does. You forecast that burn rate to quadruple. I don't find that likely.
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344 million euros net profit Q1 2011 to 700 million net less Q1 2012 is the very definition of accelerating losses. You're right that I was being hyperbolic about Christmas, but Nokia is in a really bad way, and the marketshare losses are only going to compound if Nokia has to cut back due to a perceived need to slow the rate of cash-burn.
I wonder how much worse the situation would look with out the multi-billion dollar cash infusion Microsoft gave Nokia.
You have to remember that Q1 2012 includes ?1.1B of one-time restructuring charges (primarily at the Nokia Siemens JV) and intangible write-downs. I'm of the opinion they sort of sandbagged this quarter so the next one or two look much better.
Anyway, to take a quarter where Nokia was ramping up spend for a big launch in the US (with obviously no corresponding revenue due to launch in Q2) and just starting its pivot to actually producing and selling Windows Phones and extrapolate that out seems a bit harsh to me. I'm very interested in seeing Q2 numbers, I think that's when you can start to get a sense of whether Nokia can stabilize the ship with an eye towards actually righting the ship in Late 2012 / 2013
I want to go to 1993 and invest in microsoft. Just saying...
You want to go back in time and invest in an already-dominant company right as a market is about to explode? Want a unicorn sandwich too?
Sitting a 3.20 right now. How long before it hits 3.00 even? I'd think about buying a 3.00, if only because it's a takeover target at 3.00. Was there some news I missed that it fell so much in overnight trading?
Looks like everything is down today. Oil is down 2.4% as well.