View Single Post
Guest | Posts: n/a | Thanked: 0 times | Joined on
#72
Originally Posted by cBeam View Post
Gerbick, I know there is no way to get a straight answer from you what your point is, but maybe you can explain:
Seriously dude... you're one pain in the ***. You want answers? Fine, I'll entertain even a person like yourself for a moment.

[*]Nokia stock is on a downward trajectory since 2007
Yes. From nearly 40.00 USD to 8.50 - nearly 1/5th of its worth whereas the entire stock exchange had not devalued that same amount. Simply stated, Nokia outpaced the downward trend you're alluding to in your next "point"...

[*]A new CEO is brought in, presumably to reverse the downward trend
From 40 to 8.50 is down some almost 80%. Then you want to add the current 14% (+ 5% today) drops, it doesn't have the same pace as the current stock exchange devalue. Simply put, Nokia outpaced the stock exchange drop; just like they outpaced the short-term growth as you allude to below...

[*]Nokia shares gain slightly over the next few months (from about $8.50 to about $11.50, which is about plus 35% from worst to best)
Ever thought it was because they had a new product to sell, whereas right now they do not? Rule of the thumb is that if you have a product with a pretty good buzz and/or is currently shipping, your stock worth tends to increase. Go back over Nokia's 4 year value and you'll be able to pinpoint when a new device was announced.

It is that simple. It is that noticeable.

[*]CEO introduces his new strategy and stock is down 20% within 2 days (actually more than 25% if you include the drop in share price on Thursday right before the new strategy was revealed)
Correction. It was 14% of their original price. Then another 5% of their devalued price. That does not equate to 20%.

Case in point since you've somehow missed out on high school mathematics:

10.00 x 14% = 1.4
8.6 x 5% = 0.43

Total loss = 1.83 or roughly 18.3%

Not 20%.

In the meantime, the tech heavy Nasdaq Composite index is up more than 25% within the last 6 months.
Yep. And yet Nokia can't convince anybody they're worth 25% more.

What did Nokia management do to increase shareholder value?
Absolutely nothing.

What did Elop do differently to comfort the markets?
Absolutely nothing.

If Microsoft is not the plague for Nokia, why does the market think that they have to cut 20% off Nokia's value within 2 trading days after announcement of the new strategy?
Now you're asking the wrong person kiddo. I have never argued that Microsoft was good for Nokia; nor have I stated that Microsoft was not the plague for Nokia.

Nokia was the plague for Nokia. Simply stated, they have not established themselves worthy of keeping their 2007 status, nor their 2008 status, nor their 2009 status... all of which were higher than their 2010 status (stock price) and they can't convince the world that they are worth more than (estimated by other analysts) 7.00 a share.

That's three years in a row that they hadn't proven their worth to the stock exchange. What more is there to say? That during the years of the N810 and N900 that the downward trend had continued?

Which part of that do you not understand? They had spikes, they had valleys, however the general direction has been down, down... down since 2007. Take a look at a 4 year composite and report back to me. You'll see what I've seen and have answered you above.

Is the market just wrong? Or is the market right and tells us "too little, too late, wrong direction"?
The market is telling you (and I'm reiterating myself for the last damn time here) that for the last 4 years, despite peaks and valleys, Nokia's worth has been on a constant decline.

Don't believe me? Ask a person that's invested in Nokia, ask a person that still has Nokia stock that bought in at 10.50 (where I sold at) and have rode it down to $8.38 (or so) where I purchased last year.

Now, if that's not an answer, you are one complete bumbling idiot that needs not address me ever again.

Savvy?

Last edited by gerbick; 2011-02-15 at 03:36.