Can Nokia Keep Up Its Epic Run the Rest of the Year?

In the following video, Andrew Tonner discusses Nokia, one of the best-performing tech stocks in recent memory, up more than 15% in the past three months as part of a larger rally that has seen the stock rise nearly 125% since last July.

Andrew says Nokia has put behind investors' concerns that it wouldn't be able to break into mobile in a big way and that the company would go out of business. Nevertheless, despite a partnership with Microsoft that drove demand for the Lumia handset, Nokia isn't out of the woods yet.

Shipping 4 million phones to Apple's 47 million, Nokia is still a bit player in the mobile-phone market. Andrew claims that Nokia, at 140 times forward earnings, has great expectations reflected in its price, even as it remains unprofitable within a cutthroat industry. But he finds it too rich for his blood and foresees difficulty as the company tries to compete with Apple and Google, calling the stock a mixed bag and ultimately putting a hold rating on it.

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 whether the company is a buy or sell. To get started, simply click here now.

Read/Post Comments (6) | Recommend This Article (4)

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  • Report this Comment On February 23, 2013, at 10:14 PM, robmxa wrote:

    I can't possibly convey how positive this take on Nokia is to me. Being a contrarian this review of NOK is very positive. I own NOK now and will buy more at the open Monday.

    I am retired but had a high end photo lab for 28 years and have a $10K Canon printer in a spare bedroom. Showed a large print of a recent Nokia 920 camera shot to a pro photographer today.

    He simply refused to believe this print came from the 920 even when I showed him the frame in the camera so I duplicated it, took the shot again.

    The analyst looks young. This may just be an old fogy who can't see the true age in his face but I think that possibly most of his analytic carrier has happened over the last 5-6 years.

    He may not understand just how far a determined company with an inspired workforce can comeback from near BK, like Apple for instance, or how quickly the tables can be turned again.

    I expect Nokia to do just that this year.

    That pro photographer took the Nokia 920 in his hand and said something like this. "I saw this on TV I think but had no idea it was like this" he said, "It has some heft, I like the build quality. Beautiful screen".

    And there was that print that just blew him away. What he didn't experience was the call quality, the smooth operation.

  • Report this Comment On February 24, 2013, at 12:29 AM, RandomMeaning wrote:

    Sorry, it's a nitpick but really, "epic"? Even if you went from it's lowest point on July 17, 2012 at $1.69 to it's highest point on January 11, 2013 at $4.70 that about three bucks. That's not epic. A nice profit if you had bought 10,000 shares at the lowest point and then sold them at the highest, sure. Excellent timing if you pulled it off. Not "epic".

    Then again, if you go year-to-date, you're underwater and hoping for the share price will keep going up. So, again, it's all about timing.

    I mean, what hyperbole are you going to pull out if Nokia runs up to, gasp, 7 whole dollars?


    robmxa, hardware is not what is holding Nokia back. Seems to me that Nokia has long had a strong reputation for solid hardware and quality cameras. Some of the older ones lasted for many years providing excellent call service. For better or worse, Nokia's fate is in Microsoft's hands. So far, it's been worse. Maybe it would have been anyway, who can tell? All that is certain is what has occurred: massive losses in market share, profit, and stock value (down from one of its highs of $35 in the summer of 2008).

    Wait, how was a three dollar gain "epic" again?

  • Report this Comment On February 24, 2013, at 2:31 AM, sammycooool wrote:

    If this clown tells you not to buy the stock, you know it is a screaming buy here. Anything he says is useless information. Let's stop with these moronic videos please.

  • Report this Comment On February 24, 2013, at 2:33 AM, sammycooool wrote:

    Ask yourself this, would you take investment advice from a moron?

  • Report this Comment On February 24, 2013, at 9:02 AM, lucasmonger wrote:

    Epic run? Are you kidding me? The epic run was buying Apple at $6.50 in 2003 and selling at $700 for a 100X+ or Akamai at $1 in 2003 and selling a few years later at $60. How about anything during dot-bomb (Ebay, Amazon) and selling now.

    Tripling a stock worth only a couple of dollars is hardly epic. Plus, I don't think anyone believes Nokia and bring back the mojo that they had in the 90's when the out-feature-phoned Motorola and the world.

  • Report this Comment On February 24, 2013, at 9:33 AM, H3D wrote:

    Microsoft will destroy Nokia over the next couple of years. They've coaxed them into a cul-de-sac. Next stage is the bag over the head.

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