Wednesday, August 29, 2012

Shorting Nokia Corporation (NYSE:NOK) Could Be A Good Time Now?

So was it a chimera after all? Hopes raised, just to be dashed?

Analysts feel that it is time to short Nokia Corporation (ADR)(NYSE:NOK) shares, indicating that the stock's dream run ma soon start to reverse.

The Nokia stock has risen 80 percent since the second week of July, further gaining earlier this week after a federal court in San Jose delivered a verdict against Samsung in its legal dispute over patents with Apple.

However on Tuesday the shares fell nearly 7 percent and on Wednesday the shares are down by a further 6 percent.

"In truth, there’s no real reason to think the stock can’t slide all the way back to the July lows. Or lower," writes Forbes' Eric Savitz.

How Should Investors Trade NOK Now, Find Out Here

Bernstein analyst Pierre Ferragu has also advanced the following argument as to why Nokia is a good candidate to go short on - “We believe it would be naive of us to consider last week’s ruling a positive for Nokia and more broadly Windows-based phones,” he writes. “Our research shows that for many years, poor sales of Windows-based phones stem from a deep and stable lack of consumer interest for the product. Despite numerous and repeated efforts of manufacturers (Nokia, but also Samsung and HTC) and operators to develop an alternative to Android and Apple based on Windows, and despite the launch of numerous phones based on Windows with strong features, reviews and marketing support, the operating system remains cornered to less than 5% market share in smartphones. The lack of consumer interest for Windows-based phones has been very consistent in marketing surveys we have carried out across the globe over the last several years.”

"Given the strength of Android and Apple today in consumers’ minds and the scale of both ecosystems, it is unrealistic to believe anything short of a true product revolution, like the iPhone was in its time, could instil life into an alternative platform.”


  1. Buy Long Now + 20% in 3 weeks Easy Money

  2. Ehh? read the article? Also, Q3 is gonna stink

  3. These analysts did not bring up the pro and con. Nokia beats Q2 estimate and is cutting a lot of expenses. The new phones will be available not only AT&T but also with Verizon Wireless and T-mobile. Windows phone are becoming more and more popular with consumer once they try it. The same thing happened with Android and iOs.


  5. Love to have windows phone to be available with all carriers.


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