Nokia's Shares Are Benefiting From Irrational Exuberance

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About: Nokia Corporation (NOK), Includes: SIEGY
by: Saibus Research
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Saibus Research
Long/short equity, Deep Value, value, special situations

Despite the fact Nokia Corporation (NYSE:NOK) issued a pedestrian performance forecast for its Q4 2012 and Q1 2013 results on January 10th, investors bid its shares up by 19% anyway. Maybe they felt that Nokia's performance couldn't sink any further. While we think that Nokia's fundamental business operating performance probably can't decline any further from its lows achieved in 2012 and while we believe that Nokia's not likely to suffer a near-term bankruptcy, we believe that Nokia's shares are benefiting from irrational exuberance. We were surprised to see Nokia's shares run up by 19% on January 10th because we found that Nokia's preliminary performance for Q4 2012 and Q1 2013 forecasts to be quite underwhelming and these