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Why Sell Nokia? 3 Things to Consider

By | More Articles
December 14, 2012 | Comments (8)

Every investor needs to consider both the bull case and the bear case when it comes to a stock they own. In this video, Motley Fool analysts Charly Travers and Austin Smith discuss some of the reasons to be bearish on Finnish phone maker Nokia (NYSE: NOK  ) .

As Charly points out, investors need to be rational and look at the Lumia sales volume, the big concern. When the company reports its quarterly numbers in January, unless the Lumia numbers are high, investors should take a bearish stand.

Nokia needs to gain some serious market share in North America, as presently Nokia virtually has none right now. The company needs to sell millions of units and if it can't do that, then investors should be rational and walk away.

Finally, being married to your investment in Nokia isn't a good idea unless the numbers start materializing. Investors need to be pragmatic and analyze the risk-return setup here.

Nokia's been struggling in a world of Apple and Android smartphone dominance. However, the company has banked its future on its next generation of Windows smartphones. Motley Fool analyst Charly Travers has created a new premium report that digs into both the opportunities and risks facing Nokia to help investors decide if the company is a buy or sell. To get started, simply click here now.

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Austin Smith owns shares of Apple. Charly Travers owns shares of Nokia. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (8) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 14, 2012, at 7:04 PM, EmilieRoss wrote:

    Nokia is still a buy.

    Here are the reasons:

    Nokia is a wide-ranging company. It does not just only make phones.

    It has network business (Nokia Siemens Networks).

    Navteq, even 3D mapping platform is coming soon after buying Earthmine; Nokia´s augmented reality City Lens is unique in Lumia phones.

    And Nokia is bringing almost the same app called "Nearby" to Asha phones.

    Nokia is also making GPS for many car companies.

    Nokia´s Asha phones are becoming half smartphones and they are with very competitive price, only about $60 without any contract.

    Nokia´s patent portfolio earns about 500 million euros a year.

    New Lumia generation is doing well, Lumia 920 is selling out everywhere.

  • Report this Comment On December 14, 2012, at 7:54 PM, dimsumwonder wrote:

    Motley Fool is so bearish on NOK, I wonder why?

    If we're talking solely about the smartphone market, you should try all three flavours - iOS, Android, Windows 8. I have tried all, I have all 3 - the verdict is the Lumia 920 wins.

    It has all the necessary apps (who cares about Instagram?) for daily use and the system and interface is just so damn fluid and integrated with every app. Plus, Nokia's maps and Drive Beta +, exclusively better for the Lumia lineup, blows Google Maps out of the water (let's be serious, Apple Maps is only worth mentioning in these parentheses). You want to look at the market? Check out the exclusive Bloomberg app for Lumia phones. It looks so damn nice with that streaming ticker going across the screen.

    If the market moves because of these Motley articles, that would be great so that I could buy more NOK shares at bigger discounted prices. Go Motley go! Keep being bearish. Either you're trying to cover up your shorts or you just want a discounted price on these shares.

  • Report this Comment On December 15, 2012, at 1:19 AM, llIlllIlllIlllIl wrote:

    The fool has been recommending apple these months? Christ!!

  • Report this Comment On December 15, 2012, at 3:10 AM, tpranta wrote:

    A Reality check for you guys

    Nokia Stock has gone up over 100% since july, mainly because of Lumia 920, which was selected the smartphone of the year 2012 by gizmodo readers

    http://frontlineofinformation.com/2012/12/10/nokia-lumia-920...

    Also Morgan Stanley increased Nokia holding by 700 % even though their stock rating on Nokia is "sell". In addition, the most North European Banks rate Nokia as "buy"

    http://frontlineofinformation.com/2012/11/27/morgan-stanley-...

    http://frontlineofinformation.com/2012/11/28/north-european-...

    Also, Nokia keeps on expanding its patent portfolio, and making money. Apple is already paying royalties to Nokia worth of few hundred million dollars, and now they violated yet again another patent, which will mean even more money

    http://www.reuters.com/article/2012/12/13/us-apple-patents-v...

  • Report this Comment On December 15, 2012, at 10:33 PM, lardogbeck0 wrote:

    Do you guys write any articles with actual information in them or are they all teasers for your premium reports?

  • Report this Comment On December 16, 2012, at 4:45 AM, ziploc1 wrote:

    LETS BE FAIR: LUMIA 920 was just released in December and is still not available in many places including China. Lets give it at least until Q1 2013 until we make decisions.

  • Report this Comment On December 16, 2012, at 4:10 PM, Zankudo wrote:

    Quite the superficial, chauvinistic response in that cell phones are one thing which Nokia is very good at producing, but the company has other businesses, maps, the partnership with Siemens. Insofar as cell phones are concerned the company is the most innovative of the lot spending vastly more on R&D than Apple. Its marriage to WP8 will in time bring positive results, and it strives to sell to all segments not just smart phones for the upper income brackets. It also markets in countries where Apple will never get traction.

  • Report this Comment On December 17, 2012, at 8:31 PM, Jason89 wrote:

    Nokia should be worth more than $5/share just for its cash and european and chinese sales. If they pay their dividend that's even better.

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