This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Four Oversold Stocks Ready To Bounce Higher

NOK ChartNOK data by YCharts

Nokia (NOK)

Background: Nokia is a leading supplier of mobile phones and mobile, fixed and IP networks. The company was founded in 1865 and is headquartered in Espoo, Finland. Nokia trades an average of 47.2 million shares a day and has a market cap of $11.5 billion.

52-Week High: $7.38

52-Week Low: $1.63

Book Value: $3.01

Right now, Nokia has a grand total of two buy recommendations out of 23 analysts covering the company.

From a fundamental perspective, Nokia looks interesting. While sharing some similarities with Sprint, Nokia depends almost exclusively on the sale of hardware for revenue and profits.

After Apple (AAPL) entered into the space in a big way, Nokia's future appeared to be sealed. But Microsoft (MSFT) has more or less become Nokia's sugar daddy and is backstopping the Finish company with money and an operating system platform.

In the last month, the stock has moved much higher, gaining 46%. I don't believe the upside has been fully met, but I would buy on dips and not try to chase it.

From a technical perspective, the chart is very bearish with all the major moving averages traveling from the upper left to the lower right. This extreme bearishness makes Nokia an oversold stock.

Shareholders receive 18 cents annually in dividend payments. The yield, based on a recent price, is 5.74%. Looking back at the three-year history of declared dividends, this company has paid an average of 39 cents a share each year. Over the last five years, the dividend has grown by an average of 4.6% a year.

Revenue growth relative to last year appears to be problematic for management. Comparing fiscal years, revenue declined to $50.2 billion in fiscal 2011 from $57 billion in the previous year.

With short interest above 5%, investors will want to monitor changes to see if short sellers turn up the warning signals. Otherwise, the current 5.4% of the float short is relatively small and not a major concern. If Nokia begins to move higher, the short interest may add fuel to the ride up.

Note: The author uses SEC.gov, Zacks.com, WSJ.com, Tradestation and Reuters for data. P/E ratios are generally adjusted based on an average number of shares and for operational earnings.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

5 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs