You are not tracking epicadv.
19-Aug-08
Valuation Completed: 8/18/08
Rating: Neutral
Comments: NOK is a well run company with a solid balance sheet and good business prospects. They are often ignored in the cell phone space because their products are not as flashy or dynamic as some competitors. However, NOK has consistently maintained a dominant mark share and has pushed their presence in emerging markets. The result is a predictable growth rate without the risk of financial excess.
The share price has been battered this year as NOK has seen their average sales price (ASP) decline. Declining ASP leads a to lower margins, but the offset will be new users coming online and higher volume. All in, NOK should maintain their market share dominance and grow their presence in the emerging markets. While I forecast operating margins to decline 1.50% from prior years, the long term benefits of having dominant market share will accrue to shareholders in the future.
Personally, I think the sell-off in NOK is overdone. Investors have become to pessimistic and have pushed the stock down. Finally, I am seeing a strong company with a dominant market position trading near a price I find attractive. From an earnings yield perspective, I think the share are worth $28. Using various other models, I derive fair value between $32-$34. as always , I will use the lower number and apply a 20% discount. Therefore, look to establish a position below $24.
Tagged Stocks: NOK
Posted at 05:48 in Watchlist Ideas | Permalink | Top
Trading results 1/2...
Great day for one that lasted about 38 minutes
It should co...
RobertWeinstein
Market Preleaders o...
ETRM MEG EK NFLX FBC PFBC WSTL APPY NTY NOK ASYS OSK CCMP RG...
YngvaiMalmsteve
Links You Should Kn...
www.lostgringo.comwww.downriverrentals.comwww.plasticbinrepa...
lostgringo
COV
I originally purchased TYC for I cant remember 10- 12 ...
TinaO
Categories
Holding Tags
Watchlist Tags
Other Stock Tags
Archives
0 Comments on "NOK Rationale"
You must be logged in to post a comment.
Top