Seppo Sahrakorpi

Long only, tech, macro
Seppo Sahrakorpi
Long only, tech, macro
Contributor since: 2013
I have the cash, but no stones...yet...
Full Nokia press release here:
http://nokia.ly/1mv02Qs
"... or used exercise equipment which never seems to sell on Craigslist..." LOL... :)
I am not a legal or financial expert, but my understanding is that if you own ALU shares in the US, and do nothing, one day in Q1 2016 you will no more have ALU shares on your brokerage account, rather than NOK shares. You will get 0.55 Nokia shares, for each ALU share, so that if you have 100 ALU shares, you will end up with 55 NOK shares.
The acquisition is now officially due to close in Q1 2016 (earlier it was H1 2016, but things have been going smoothly).
My guestimate is ~$2 per device, resulting to ~$2 upside per share...for details, please see my old write up here:
http://bit.ly/1G2hBQ3
Nokia has been clearly emphasizing that it is not a merger, it is an acquisition by Nokia, and Nokia will be in charge.
Currently Nokia guides that the deal should close by the end of Q1 2016.
Per the blog post "...In some instances, this exceeded 75 TB per user or 14,000 times the average...", which translates to roughly 5.4 GB per user on average.
Of course average is a poor number to describe usage statistics (median would be a bit more descriptive number) of data that has wide and non-Gaussian distribution, in other words, one needs many 'less than 5GB' users to compensate for a few 1TB users. In any case, the ~5GB average per user implies that there is huge number of users that are below 5GB and are not immediately affected by this.
I would assume you have to report such dividend income as any other dividend income in your Roth IRA. But you should contact your broker for details.
The real pain though is the foreign holding tax. I have Nokia ADR (ticker NYSE:NOK) shares and Nokia being a Finnish company, the Finnish government holds back 30% of the dividends :( Getting some portion of the foreign holding back is a painful bureaucratic process, and not even worth it or possible for small amounts. The details are dependent on the bilateral tax treaty between the two countries, the US and Finland in my case. So if for example the tax treaty says that the tax rate should be 20%, you can get 10% of the withholding back after filing all the paperwork.
For foreign tax withholding, the best resource for information per my experience is to contact the issuer/manager of said ADRs in US (i.e. not your broker). In Nokia's case this is Citi. I got a very quick, detailed, and professional reply from them to my specific question.
Very nice! in AH a new all time high since ~April 2000. And good momentum still, i.e. this is not just one time thing rather than part of succesfull on-going transformation with more upside.

IAM:
One day we may conclude that today's patent market difficulties were very good news for many NPEs
http://bit.ly/1OD3CDa
IDG created $7M in revenue in 2014, but no word about actual profits. That's what Vringo needs ASAP.
The wireless charging thingy is just some new invention, founded in 2014. So that's all just future potential/opportunities, i.e. non-material today. The Group Mobile business seems to be for real, creating actual revenue.
See the presentation here:
http://bit.ly/1NK6CgW
Good move. Hopefully giving Bull a run :)
The article forgot to mention the forthcoming Samsung deal (currently in binding arbitration, due end of 2015).
My estimate is that this could be worth ~$2+ per share. For details, please see here:
http://bit.ly/1G2hBQ3
Thank you. Great read and summary. I am looking forward to the follow-up.
Also, in the Reuters article:
Alcatel-Lucent said on Tuesday it will not sell its undersea cables unit...
http://reut.rs/1jcPkw7
This press release has also the new org structure:
http://nokia.ly/1jcPeEI
After the closing of the exchange offer, the Networks business would be conducted through four business groups: Mobile Networks, Fixed Networks, Applications & Analytics and IP/Optical Networks. These business groups would provide an end-to-end portfolio of products, software and services to enable the combined company to deliver the next generation of leading networks solutions and services to customers. Alongside these, Nokia Technologies would continue to operate as a separate business group. Each business group would have strategic, operational and financial responsibility for its portfolio and would be fully accountable for meeting its targets. The four Networks business groups would have a common Integration and Transformation Office to drive synergies and to lead integration activities. The business group leaders would report directly to Nokia's President and Chief Executive Officer:...
Yes, and this (and in China) is where the money is for VLKAY
Thanks. Good news all over in that WSJ piece for VLKAY longs...
PS: If one does not have a WSJ subscription, copy-paste the title to Google search, and click the link. THe article will be freely available that way.
My aunt smoke 2+ packs of unfiltered camels all her life until ripe age of 63 when she, after first loosing 200 lbs and withering away, died of lung cancer.
I-4 is a smaller engine, in a smaller cheaper car, with lower margins in absolute (and relative terms) compared to V-6 variants, thus less margin room for expensive emissions tech -> cheat.
Wow, that is a huge revenue miss percentage wise. And it is not that we have some huge revenue in absolute terms either. And naturally margins are (finally) eroding like crazy, ~25% drop!
And we are supposed to have a turn around story going on (that has been taking for what 2-4 years now). This ship is still sinking instead, and seemingly has finally reached the point where cutting expenses can not anymore keep up with the revenues dropping. In other words, this might be the final inflection point...
@redrut Good to see you back!
Have you taken a position in VW (yet, or plan to)? I bought first half of a long VLKAY position yesterday. The damage is not worth $30B+ IMO...we'll see
For what it is worth, I entered the first lot today, long VLKAY at $25.60...
@MrK LOL, me too, at $25.60. Just could not help myself. Let's hope VLKAY will be our next NOK :)
Thanks for the summary!
.
Wow, what a s**t show. I set the trailing stop loss at around 2:50PM, while at comfortable ~8% profit. Stepped out to pick up the kids, just to get a sell confirmation email at around 3:20PM...luckily made a meager 3% profit.
And it looks like that in AH the trends down further.
I was not quick enough for doubling down, but plan on holding on to the current position for a while, with a trailing stop loss order in place to take profits if needed...
Thanks! I am long SVXY 50% of my volatility bucket. If it goes up, I let it ride, if it goes down, then I will enter the remaining 50% at some point. I do not do options...