NOK
Nokia Corporation
TMT, Event Driven/Special Sit
03/03/2014
Presented
| Date | 02/28/2014 |
| Price | $7.69 |
| Market Cap | $28.60B |
| Ent Value | $25.27B |
| P/E Ratio | 8.32x |
| Book Value | $2.60 |
| Div Yield | 2% |
| Shares O/S | 3,713.80M |
| Ave Daily Vol | 21,600,000 |
| Short Int | N/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 thinks the Street may be slightly behind on performing the due diligence on - and modeling out – what Nokia (NOK) will look like pro forma post-sale of its handset business to Microsoft. He sees the risk/ reward as favorable in the high $7s (€5.60, locally), and is long shares in anticipation of the deal closing successfully and the market adjusting its perspective on the Finnish company. In addition to being long NOK stock, he believes the implied volatility in options offers investors some interesting, incremental ways to play the bullish thesis. A 40 IVol is more reflective of “old” NOK, and is likely to come down once the deal closes.
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