NOK

Nokia Corporation

TMT


Presented:02/19/2014
Price:$7.27
Cap:$27.20B
Current Price:$4.41
Cap:$24.25B

Presented

Date02/19/2014
Price$7.27
Market Cap$27.20B
Ent Value$23.93B
P/E Ratio8.32x
Book Value$2.60
Div Yield2%
Shares O/S3,744.99M
Ave Daily Vol2,240,000
Short IntN/A

Current

Price$4.41
Market Cap$24.25B
Nokia Corporation operates as a mobile communications company worldwide. It operates in three segments: Devices & Services, HERE, and Nokia Siemens Networks. The Devices & Services segment offers feature mobile phones and smartphones consisting of the windows phone operating system; and spare parts. The HERE segment develops a range of location-based products and services for consumers, platform services, and local commerce services for its feature phones and smartphones, as well as for other device manufacturers, automobile manufacturers, application developers, Internet service providers, merchants, and advertisers. This segment also provides content and business-to-business provider of map data to NAVTEQ’s customers; and focuses on the development of content, the platform, and applications. It offers a suite of location applications, such as HERE Maps, HERE Drive, HERE Transport, and HERE City Lens. The Nokia Siemens Networks segment provides telecommunications infrastructure to the mobile broadband market. This segment offers a portfolio of mobile, fixed, and converged network technology, as well as professional services, including managed services, consultancy and systems integration, deployment, and maintenance services to operators and service providers. The company sells its products to mobile network operators, distributors, independent retailers, corporate customers, and consumers. Nokia Corporation was founded in 1865 and is headquartered in Espoo, Finland.

Highlights

The presenter is long shares of Nokia and likes the relatively new management team and Chairman, Risto Siilasmaa. Given the recent sale of the cell phone business, it would appear that Siilasmaa has been somewhat successful in bringing a more entrepreneurial spirit to the company. With EUR 7+ billion in cash on the balance sheet (~1/3 of the market cap), he believes downside is limited and there is a high probability that some portion of the cash will be returned to shareholders in the foreseeable future. In addition, the company’s ability to monetize its IP more effectively provides investors with some optionality.

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Idea Discussion

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