Thread: Nokia shares dive after sales warning
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ericsson is offline ericsson
2011-06-07 , 23:41
Banned | Posts: 974 | Thanked: 622 times | Joined on Oct 2010
#90
Originally Posted by cBeam View Post
Ericsson, your posts are refreshingly optimistic (or hellofalot naive).

Here is how it went:
  • Nokia’s share price is on a downward trajectory since fall 2007.
  • Finally (way too late) the board decides to act and brings in a new CEO to turn the company around.
  • During the first few months on the job the share price stabilizes and increases (Qt-strategy with MeeGo and Symbian; S40).
  • Feb 2011: The CEO burns the platform, announces death of Symbian, and commits Nokia to WP.
  • Nokia’s share price loses more than 40% since the announcement. Fitch downgrades Nokia’s bond rating two notches to one notch above junk.
  • Nokia is falling off the cliff. There will be no more Nokia as an independent concern of any relevance pretty soon.

Is Elop the only culprit? No, but he is the CEO and was hired to make Nokia successful again.

40% down is no success.
Investors do not buy his strategy (20% drop after WP announcement 2/11) nor his execution (20% down after profit warning 5/11).
Rather naive than a sorry pessimistic whiner

About 1% of Nokias shares are actually in the wild. The rest of the shares are owned by long term investors that have one single goal in life, and that is to see Nokia thrive, and they are loaded with money. Nokia is very similar to VW group, virtually indestructible.

It is those investors that hired Elop to gang up with MS and put Symbian to sleep. You may cry and whine that Nokia is doing bad, WP is doing bad, two bads don't make it good and so on, but it is nothing but brainless whining any way you look at it.

The phones and devices coming this fall from Nokia will truly kick some serious ***. The HW will make you scream, and the integrated OS/ecosystem that follows will make you pee in your pants. And lots of them will come, cheap ones, expensive ones, phones, tablets, communicators, camera monsters. What is happening is the larger part of the entire tech industry including the most powerful investors in the world swamping the world market with exactly the thing people want, and it is happening in one single long lasting blow. There is no way this will fail.

So, if you can get hold in some Nokia shares, for gods sake get some now.