Retirement Income Management - Company Message
RSS

Recent Posts

Is the stock market overvalued?
Intel (INTC) reports slightly lower than expected sales and earnings
Target lowers 1Q sales and earnings projections
Volatility Index (VIX) rises
U.S. housing construction jumps 7% in March

Categories

Bond
Income investing
International Economics
Investment Strategy
MLP
U.S. Economics
powered by

My Blog

Nokia Revival

Below is a summary of a review of Nokia.  Attached is the full Report. 
 
 
 
 
 
Summary
 
Finland based Nokia is clearly still in a troubled situation vs where it was several years ago, but it appears that the worst is over.  The stock clearly reflects this as it is up 150% up off the bottom and the bonds have come back up almost 20% off the bottom several months ago.  Furthermore, the company has about $4 billion in net cash. 
 
While the stock pays a 5% dividend and could see tremendous upside, there is still the risk of another dividend cut and enough uncertainty about the strength of the Windows 8 cellphone launches so we are recommending staying with the bonds at this point.   
 
 
            Coupon            Maturity       Moody's         S&P    CurrentPrice             YTM
 
               5.38%          05/15/2019        Ba3             BB-          $98.58               5.64%
 
               6.63%          05/15/2039        Ba3             BB-          $95.13               7.03%
 
Website Builder provided by  Vistaprint