Below is a summary of a review of Nokia. Attached is the full Report.
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%