Stock market indices may be racing to records, but a trio of stocks is still feeling the heat.
Wireless-infrastructure provider Nokia (NOK) is more than 40% this year, the world's biggest maker of generic drugs Teva Pharmaceutical Industries (TEVA) has tumbled 42% and telecommunication giant Vodafone (VOD) is off 20%-plus.
Are these stocks to avoid or great value plays?
Even a decade ago Nokia was the acknowledged leader of the cellphone business.
Things have taken a darker turn since then. Selling off the entire division to Microsoft, Nokia is left with little else other than its wireless-infrastructure equipment arm.
Demand for the company's network products has been largely dull as investors have realized that wireless-infrastructure services are rapidly becoming commoditized.
Plus, dividend-income investors who were once deeply satisfied with its hefty yield of 7.03% are beginning to understand that these ever-rising numbers are unsustainable. As business weakens, operating cash flows will definitely be under pressure.
Avoid Nokia, as it doesn't look likely to turn around anytime soon.