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Tuesday, Aug 27
Bernstein raises doubts about Nokia's cash position
- Nokia's (NOK -3.4%) cash position is "less comfortable than it looks," Bernstein argues, saying that the company's Q2 net cash flow of €3B at its handset division doesn't take into account "a number of hidden liabilities."
- Nokia's negative operating working capital, expenses, provisions and the money it owes Microsoft represent €4.8B of obligations that aren't reflected in the net cash number.
- In addition, prepaid expenses of €2.1B could be worth nothing if adjusted for "likely write-downs."
- Bernstein "wouldn't be surprised" if Nokia announces another restructuring and a strategy shift by the end of the year.