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Maikelmike
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Graduate of Stockholm University, Masters degree in Finance, Second degree bachelor in Economics, Focusing primary on writing analysts on Telecom companies but may also on occasions provide articles on the stock market as a whole.
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  • Mr.Market

    Are you to become a trader? Or are you just starting to know what a stock is?

    Either way, getting to know the platform - the market - where you probably will do your affairs is a must-know. If we follow the academic literature and the theory of market efficiency then we should expect that the market - most of the times - acts accurately in pricing stocks. However, as it usually is when it comes to the world of academics, its concepts are more applicable in theory than in practice. In real world, in real markets without any assumptions sometimes the price of a stock does not reflect its value; sometimes the particular asset is mis priced. To understand the logic behind this, One should know about Ben Grahams brilliant metaphor mr. Market. It normally functions as the most brilliant metaphor ever created explaining the mispricing of stocks.

    The Manic-depressive mr.Market does not always price stocks the way you or I would value a business. For an example, when stocks are going up, he, being a lunatic pays happily more than their objective value and when the stocks are going down he sells them for less than their true worth.

    "Would you allow a lunatic to come by at least five times a week to tell you that you should feel exactly the way he feels? Would you ever agree to be euphoric just because he is - or miserable just because he thinks you should be?" These are the questions asked discussing mr.Market in the commentary section of chapter 8 of Ben Grahams book "Intelligent Investor" . The answer to these questions is of course not. Every person would insist on their rights to take control of their own emotional lives, based on their experiences and beliefs." However, when it comes to their financial lives, millions of people still let mr.Market tell them how to feel and what to do - despite the fact that he from time to time can get crazier as hell".

    Just look at the recent financial crisis. Many companies lost more than half of their market values although they still earned the same money they had earned before the crisis hit. A fear was manifested inmr.Markets decision to sell assets for less than their true worth - which resulted in declining stock markets all around the world. Of course, sometimes these declines were justified. Some companies were in great trouble but many were not affected to a greater extent at all. This was evident later when the stock markets experienced a boom.

    Of course, it is hard to know when mr.market acts stupidly. One intelligent investor - as described in the book - should therefore try to do as much research as possible to be able to take advantage onmr.Markets decisions. The investor should do business with him, but only when it serves your interests. As mr.Markets job is to provide the prices, your job is to decide whether these prices are correct or not.

    Feb 03 5:54 AM | Link | Comment!
  • Quick 5 Year Look At Operating Profit

    Here comes a 5 year quick look at Nokias Operating profit and Net sales, as you notice by the second graph Nokias operating profit has declined dramatically since 2007.

    (click to enlarge)

    Disclosure: I am long NOK.

    Tags: NOK, AAPL, SSNGY, MSFT
    Feb 01 12:40 PM | Link | Comment!
  • Nokia HERE Deals With Toyota

    Nokia continues to improve their location & commerce division. This results normally into new deals and partnerships. Today the Finnish manufacturer announced a deal with Toyota Motor Europe.

    The new deal means that HERE Location platform will power next generation of navigation and infotainment systems in upcoming Toyota Cars.

    As it was reported last year, the navigation in 4/5 cars is already powered by HERE which includes car manufacturers like BMW, Mercedes, Volkswagen, Hyundai and now Toyota.

    The Location and Commerce division of Nokia is still very small however as we moves forward it will grow. Last year Nokia announced e.g. the rebranding of its mapping services into HERE and bought Earthmine, a 3D street-level imaging specialist, reaffirming its concentration towards mapping and location solutions.

    Press Release:
    HERE Platform from Nokia Powers Toyota Motor Europe's Next Generation of Navigation and Infotainment Systems

    Toyota is the Latest Major Automotive Brand to Leverage Best-in-Class Nokia Mapping Technology using its Local Search for Automotive

    Espoo, Finland - Nokia today announced that Toyota Motor Europe is the latest automotive brand to select the HERE platform's Nokia Local Search for Automotive to power its next generation Touch & Go navigation and infotainment systems. Nokia Local Search for Automotive is a specifically designed solution developed to fulfill the requirements of the automotive industry.

    By leveraging Nokia Local Search for Automotive, Toyota drivers will have fast and easy online access to the latest high-quality industry mapping information and community-generated content - including millions of ratings, reviews and images fed directly into their cars.

    The introduction of this service demonstrates how Nokia's HERE business is continuing to extend its industry-leading portfolio of products to meet the needs of its automotive customers.

    "The ability to deliver comprehensive and driver-relevant content tailored to automotive requirements makes the Nokia Location Platform an interesting proposition," said Derek Williams, General Manager, Telematics & Multimedia, Toyota Motor Europe. "It is an excellent basis for creative location-centric concepts and we are delighted to bring this technology to our customers. Nokia Local Search for Automotive is expected to be commercially available in Toyota systems from early 2014 in Europe, Russia and the Middle East."

    Moving forward, Toyota Motor Europe will collaborate with Nokia to study more services that leverage the Nokia Location Platform, including best-in-class content. Nokia is currently the leading company providing end-to-end mapping, navigation and location solutions for the automotive industry.

    "Nokia and Toyota share the same vision of what the in-vehicle location experience should be - immersive, always on. Today's announcement underlines Nokia's commitment to providing fresh content and services to the auto industry so it can deliver innovative consumer solutions," said Eric Fumat, Vice President Sales & Business Development EMEA, Nokia Location & Commerce.

    Disclosure: I am long NOK.

    Jan 31 8:41 AM | Link | Comment!
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