Shares in Finnish handset maker Nokia Corporation (ADR)(NYSE:NOK) rose over 12 percent on Wednesday as traders rushed to cover their short positions.
Is Lumia A Real Turnaround Formula For NOK and Investors Should The Stock Now? Find Out Here
Analysts and dealers said that the stock had been heavily short sold in recent weeks by several hedge funds who were now rushing to cover their positions as news of the Nokia Lumia 920 doing brisk business in Europe filtered through the tech world.
The unexpectedly positive response to the Lumia 920, which has led to its being sold out in countries like Germany and Australia has led to a renewed interest in the stock.
Lumia 920, running on Windows Phone 8, was unveiled in September this year but has been released for sale only in November.
Unlike Apple, where very clear sales figures were available, there are no details available of the number of units of the Nokia phones actually sold.
Nokia has tied up with major carriers in all countries and the supply has been done carrier by carrier and country by country. We will have to wait for the official figures to be released either by Nokia or any of the network carriers to gauge the actual sales of the handsets.
Barrons reported that short interest in the Nokia as at the end of October was 313 million shares on a base of 3.75 billion shares outstanding - that is, about 8 percent.
Incidentally the New York Times has also given the Lumia a thumbs up, comparing it favourably with Android phones and also the iPhone and HTC 8X.
Comparing the 920 and the HTC 8X, NYT's David Pogue has termed both of them `terrific and dazzling' but gives the Nokia phone a distinct edge.
"Both have state-of-the-art hardware, superb design and Microsoft’s spectacular phone software. Yes, that’s right. You thought Microsoft operating systems were derivative, uninspired, bloated, plagued by featuritis? Windows Phone will change your mind fast," he wrote.