Nokia Stock

[AbP Slayer]

Re: Keep or sell Nokia stock?

I am in the same dilemma.

 

[B T C]

I still have all of my NOK and am now regretting not buying more over the last few weeks. I've been expecting a market correction and figured I could get more in the low to mid 3's. I'm not sure how I feel about the Microsoft deal, but my initial reaction was disappointment.

 

[gsquared]

I have decided to hold my position in Nokia. The jump yesterday was tempting and still is today as they are still rising. They will continue to rise for a while as shorts cover there positions. Anyway, I have decided to hold for the following reasons:

1. Nokia is now in a much better position with the burden of the D&S division to go away. That leaves them with two divisions that are both producing profits.
2. Once the sale is complete there will be a sizable payout to shareholders. They will not payout all of the proceeds but I can see 75-80% being given to the shareholders.
3. Nokia will likely reintroduce their dividend if they are profitable. As a foriegn investor however the tax imposed makes this not too big of a deal to me.

Although MSFT may have planned to take the D&S division from Nokia all along nobody can say they have done any harm to Nokia as a whole. MSFT is leaving them in a much better position than when they first partnered with them.

 

[StevePT]

Well, I'm still in NOK and doing as much research as I can to see which way to go... I've read as well that Nokia now has a much more focused business and the divisions that still make up their company are their most profitable. The device division was the largest drag on the company, but also had the most potential to bring them back up to a double digit stock. Looking back around 6 years ago they were trading in the high 30's. I doubt they'll ever reach those numbers again, however they should now have a much easier path to getting out of the 3's they've been floating in for the last year or so.

What do you mean by there being a sizable payout to shareholders when the sale is complete? Is this a one-time check or more stock or.... ?

I'm certainly no stock expert... I just knew Nokia was a quality manufacturer, Windows Phone OS has a lot of up-side and saw their stock priced at a point that seemed like a bargain, provided the company could get back to solid profit margins. I bought a sizable chunk of stock and want enjoy seeing how much it has gone up, but realize as well that it could be gone just as fast as it came...

I had a similar investment in the natural gas engines for commercial vehicles industry. I saw a lot of up-side to that industry, bought a stock and sold it when it tripled in value. What I didn't know was that it would then triple again beyond the point I sold it. Had I been more patient... I don't even want to know how much more money that would have been... it'd be painful to look and a moot point anyway. I don't want to make the same mistake with Nokia...

I have decided to hold my position in Nokia. The jump yesterday was tempting and still is today as they are still rising. They will continue to rise for a while as shorts cover there positions. Anyway, I have decided to hold for the following reasons:

1. Nokia is now in a much better position with the burden of the D&S division to go away. That leaves them with two divisions that are both producing profits.
2. Once the sale is complete there will be a sizable payout to shareholders. They will not payout all of the proceeds but I can see 75-80% being given to the shareholders.
3. Nokia will likely reintroduce their dividend if they are profitable. As a foriegn investor however the tax imposed makes this not too big of a deal to me.

Although MSFT may have planned to take the D&S division from Nokia all along nobody can say they have done any harm to Nokia as a whole. MSFT is leaving them in a much better position than when they first partnered with them.

 

[a5cent]

What do you mean by there being a sizable payout to shareholders when the sale is complete? Is this a one-time check or more stock or.... ?

This is a rumour. Most people agree that this would be a terrible idea. It would artificially inflate the stock price which would then immediately collapse after the payout, likely below the $5 mark. That will leave Nokia debt ridden and just as weak as they were before the MS deal. I highly doubt this will happen.

This is what I expect to happen:

Most of the 7 billion will likely be used to pay back debts. Nokia will surely also use a chunk of that money to strengthen their current operations. If anything is left after that, what they should do is buy back stock. That will raise the stock price and keep it there, at which point institutional investors might again become interested.

Unfortunately, investors are not a patient bunch, and often will prefer money now over a stronger Nokia later.

 

[B T C]

Anyone still holding, or adding?

 

[hopmedic]

Still holding.

 

[B T C]

Me too. If it hits 1,000 bucks per share, I might be able to retire early.

 

[hopmedic]

Given that it's been sitting pretty still for so long hovering just under or at $8, I'm starting to wonder if I should take my 200% increase and move it into something that moves a little more... Yeah, I know.... Long haul.... but patience is a virtue that I do not possess. :wink:

 

[B T C]

It's obviously not going to $1000 today.

 

[hopmedic]

Maybe tomorrow...

 

[StevePT]

Well, here we are 8 months later and NOK stock has been floating in the low to mid $8 range the last month. With earnings report schedule for one month from today and multiple analysts upgrading their outlook on the stock with some setting a price target of $11-12 I'm hoping for a decent jump before the end of the year.

Anyone else holding onto their NOK stock? Did you get your nice "special" dividend payout back in July?