how low can you limbo, not as low as nokia stock price :P

After more rumours, this time of Samsung buying Nokia, there's a new stock price low point, touching at 6.235 today.

I am pretty glad I didn't buy Nokia stocks in, say, late January 2011 :g

hahaha. so low. what's a good way to buy stocks?

I can do that in my net bank. :B

Touching $6.22 (6.21?) wednesday and thursday.

Not sure if these images will hotlink:

Nokia Corp. (NOK) - $


NOK1V - €

The thing is, the stock is SO much lower than the value of the company's assets alone.

It hurts that I bought a lot at around $9, but it's worth more than that, too. This can't go on forever.

buy more noks...

As it is now, it's in danger of being bought to be sold in pieces - the price is lower than the cash value. So technically it's underpriced, for sure, maybe because nobody wants the job of cutting it's throat. Or maybe the vultures are already reading through the books to see if it's really worth what it says it's worth.

On a long term scale though, that doesn't guarantee profit if you're all in today - they can still keep going like this until all value has been burned up. I'd think it'd have to change eventually though. This is a company with a lot of options - even peeing the pants with Android hardware.

This may be a common misconception the total stock values must not drop below total value of assets. It could.

The stock values directly reflects the future prospect and the earnings of a company. The other indirect index of stock valuation is the market positioning of the company in the industry.

This might not be convincing to you. I give you an example: if one day Nokia's board concluded that they're done and decided to sell all the business and assets to cash in, the stock price will quickly be approaching $0.

So what happen here? Shouldn't the stock values reflect the total company values, which is supposed to be unchanged after cashing in? The problem is that the company would be losing all the capabilities to earn money, and it is exactly what affect the valuation of stocks.

I know the above doesn't help you to save your portfolio. However, it's not totally hopeless. Many people forgot the brand valuation. If the coalition with Microsoft could really expand the brand value, then even when there's zero sales profit for 3 or 4 quarters, the stock value would still raise, then you could exit at the right price.

Currently the brand value could keep Nokia from dropping below $4. If it does, then Nokia would be subjected to restructuring, and you may sell them to avoid further lost.

will be intressting to see if the announcment of the harmattan phone can gve the stock a push. Lets hope so