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Nokia's (NOK) shares are +7.45% at €3.06 in Helsinki and Siemens' are +1.7% premarket in...

Nokia's (NOK) shares are +7.45% at €3.06 in Helsinki and Siemens' are +1.7% premarket in the U.S. following news that Nokia is buying Siemens out of NSN. "With this transaction, Nokia buys itself a future, whatever happens in smartphones and feature phones," Bernstein analyst Pierre Ferragu writes. JP Morgan upgrades Nokia to overweight from underweight and lifts its target price to €3.6 from €2. Regarding Siemens, Morgan Stanley is happy that despite the price being low, the conglomerate "has managed to get this done."
Comments (5)
  • robmx
    , contributor
    Comments (116) | Send Message
     
    Now the market has to start looking at Nokia as a going business not a short term bankrupt. This is a company that is taking control of an asset that is worth far more than they are paying.

     

    This is a company that has confidence in its near term future.

     

    Nokia now has lots of options and the market will change its valuation from .3 times sales to ONE times sales in the near term..
    1 Jul 2013, 05:36 AM Reply Like
  • kimsky
    , contributor
    Comments (49) | Send Message
     
    Oh Mark Sue where are you now ?
    1 Jul 2013, 05:49 AM Reply Like
  • sa234
    , contributor
    Comments (24) | Send Message
     
    I agree with robmx. Even a conservative valuation puts accretion from this deal at $0.75 per share (assumes that NSN is worth 0.65x fwd sales and Nokia can term out 500 million of debt at about 7%), suggesting that Nokia could exceed $4.00 very shortly. Plus, by consolidating NSN, Nokia should have enough cash flow to preserve D&S until Windows Phone can gain enough traction to make that segment profitable. Good things are on the horizon.
    1 Jul 2013, 06:31 AM Reply Like
  • Hans Thoma
    , contributor
    Comments (240) | Send Message
     
    Well I'll say this much, maybe people will stop viewing Nokia as just a phone manufacturer. Up until now, people were trading it based only on phone industry news. Heck, just last year some people were saying it could hit $15-20 if the Lumia 920 went gangbusters in the marketplace. That's ONE phone of ONE segment of ONE business unit that doesn't even account for the majority of Nokia's revenue.
    1 Jul 2013, 08:52 AM Reply Like
  • HUGU
    , contributor
    Comments (2) | Send Message
     
    News that we have all been waiting for.....the plot thickens !!!..
    1 Jul 2013, 09:09 AM Reply Like
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