NOK

Nokia Corporation

TMT


Presented:04/16/2014
Price:$7.30
Cap:$27.30B
Current Price:$4.41
Cap:$24.25B

Presented

Date04/16/2014
Price$7.30
Market Cap$27.30B
Ent Value$24.24B
P/E Ratio8.25x
Book Value$2.62
Div Yield2%
Shares O/S3.74M
Ave Daily Vol23,070,000
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. 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 said Nokia (NOK) is his “tightest duration” long idea at this time, and likes the set up and risk/ reward following the Chinese regulators approval of the sale of its mobile phone business to Microsoft. The deal should close by month’s end, which will leave the Finnish company with its network infrastructure business (NSN, ~2/3 of EBIT) and IP portfolio (licensing will be ~1/3 of EBIT). Overall, he sees 10% downside risk and 40%+ upside for shareholders at present levels over the next 12 months, assuming the company can maintain modest growth in its NSN business, and execute on monetizing its patents on a net-basis.

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Idea Discussion

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