This Day On The Street
Continue to site
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

3 Reasons Nokia Shares Are Recovering

Chris Lau, Kapitall: Investors are growing confident in Nokia ( NOK ). Shares have risen sharply from a low reached in April 2013. As Nokia approaches a yearly high, there are three reasons to expect more upside in shares.

[Read more from Kapitall:  Why Lean In When I Can Stand Up Straight]

1. Lumia releases

Nokia released the Lumia 625 in June this year. The phone has a massive 4.7 inch display, powered by a dual-core Qualcomm ( QCOM ) Snapdragon processor. Without a contract, the phone will sell for $290 in Europe, Latin America, and Asia in the third quarter. The only downside of the phone is the low resolution (800×480).

At the premium end, the Lumia 1020 was launched, gaining positive reviews from critics.

2. Nokia Siemens acquired

Nokia simplified its ownership structure of Nokia Siemens by buying the portion it did not own. Costing $2.2 billion, Nokia will now be in a position to reduce costs at Nokia Solutions and Networks (NSN). Nokia aims to cut operating costs by EUR 1.5 billion. This is sharply higher than the original target of nearly EUR 1 billion.

3. Nokia Windows RT tablet

Nokia is rumored to be working on an RT tablet. If the speculation is correct, the device will be announced on September 26, 2013 in New York.

Microsoft ( MSFT ) has seen little success so far for the Surface tablet. The company wrote down its inventory last quarter. Nokia could fare better, especially if the hardware design is improved. Nokia is already known for building good-quality products.

Nokia sharply higher this year

Compared to other mobile chip makers and network suppliers, Nokia is valued in the middle range compared to its competitors:

Lumia still Nokia’s savior

Nokia’s Lumia is growing nicely in many emerging market countries, thanks to Microsoft. In Latin America, the Windows Phone is among the most popular – Microsoft said the system is ranked second in Peru, Mexico, and Colombia. Nokia is succeeding because it offers a broad range of Lumia devices worldwide. As consumers recognize the value proposition offered by Nokia, demand will grow.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,912.59 +0.30 0.00%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,743.5370 -47.6150 -0.99%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs