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What To Do After Nokia Shares Rally

May 03, 2021 2:57 PM ETNokia Oyj (NOK) StockERIC103 Comments

Summary

  • Nokia posted strong quarterly results.
  • Release of 5G and base stations are positive catalysts.
  • Price target with 49% upside explained.
  • Looking for more investing ideas like this one? Get them exclusively at DIY Value Investing. Learn More »

Nokia brand name on top of an office building
Photo by Risto0/iStock Editorial via Getty Images

Shortly after Nokia (NYSE:NOK) traded to multi-year highs in January, investors locked in profits and the stock moved nowhere. The 20% return since February is modest, outpacing the S&P 500's (

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This article was written by

Chris Lau profile picture
32.53K Followers

Chris Lau is an individual investor and economist with 30 years of experience covering life science, technology, and dividend-growth income stocks. He has degrees in Microbiology and Economics.

Chris runs the investing group DIY Value Investing where he shares his top stock picks of undervalued stocks with catalysts for upside, dividend-income recommendations with quant and payment calendar tracking, high upside plays, and research requests to help you become a better do-it-yourself investor. Learn more.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (103)

K
NOK is huge into Private5G setups. So, if a factory needs 5G signals within their floors in every nook and cranny, then NOK will come and set this up with a full 5G Radio, Terminating Devices, Firewalls and Routers. This will light up the whole huge facility with signal propagating beyond the normal walls. So, when the AGV turns the corner it will reach its destination. As soon as network slicing is available, it will be able to prioritize on certain traffic so some idiot worker on a lunch break will not take precedence watching a Netflix movie over the same 4G/5G beaming signal and slow down the AGV or Machine or AV vehicle moving around. 4K cameras will be able to pickup what the human eye cannot see and find the flaws in the welding of a gear being produced, and reject it before it become 10X more expensive to be returned, repaired and create a CX issue. Sorry for all the lingo in here, but Nokia is doing all of this, with the two only other competitors (non-Chinese) being ERIC and Samsung (not traded in US makets easily). So, I am buying NOK slowly but surely and have a very positively but biased opinion on the success of this company over time as 5G, IoT, Automation and replacing-humans becomes the mantra of 2022-23-24-25. Humans can do better functions and more functions that only human-intelligence can do, and let some of the process-automation and accuracy-automation work being done by machines (auto making factories already do many of these things at a high cost, and now they will be able to do this for lower costs). Hope this gives a 'technical view' to the NOK story......Absolutely not owning NOK for the phones!!!!!
Chris Lau profile picture
GS finally followed and upgraded $NOK stock with a $6.50 PT, up from $4.90.
NOK is one of three 5G Hypergrowth DIY long-term ideas.
-=Prospero=- profile picture
@Chris Lau "NOK is one of three 5G Hypergrowth DIY long-term ideas..." Sure, Chris. Until a competent analyst is down on the company and you flip once again. Do you ever have any ideas of your own? Long NOK.
Chris Lau profile picture
@-=Prospero=- Do you have an SA Premium account? Recommended.
ERIC took a turn south.
Nick Cox profile picture
@Chris Lau
We've heard that one before....many times
t
Nokia is going to increase in value if the the next Q is better than Q1. $7.00 is not an unreasonable target. The new management is making all the right moves.
Patrick M. Crowley profile picture
Interestingly Cramer recently said he preferred NOK to Eriksson saying it had a better set up to take advantage of 5G. Before he used to mock it as "a river in Finland"!
j
@Patrick M. Crowley is he going to buy 1 billion of the 5 billion out there? Just sayin.
Patrick M. Crowley profile picture
@jpgallo05 No, Cramer prefers other ways to play 5G. But I thought his comment should be mentioned as in the equipment space maybe NOK products do have some demand strength going forward.
t
The big boys are buying the heck of Nokia stock. It should move up to a new trading level. I am buying some of the stock I sold earlier.
j
@ted lujan "heck" better be at least a billion shares.
Dinjax profile picture
For anyone interested in call options, the 7/16/21 $4 has a $1.06 ask. Seems strange since shares are at $5.01 and the 6/18 $4s are $1.03 ask. Sold my 6/18s and picked up more 7/16s. NOK is headed higher.
Dinjax profile picture
@Chris Lau thanks, same as Schwab prices, give or take. Lots of volatility, but I took advantage of getting another month for a few cents per contract. Seemed like a good tradeoff.
BarkingShark profile picture
@Dinjax that’s what I’ve been doing with Nokia for years now... writing Covered Call Options.. the pop last week and added IV made for some nice Premiums going out to July.. (as you mentioned).
D
Still have my candy bar phones. Wonder if I sell it on eBay as a collectible and buy more NOK hehe.
t
Nokia up 2.21% today. still a good buy. Added to my position today
t
Nokia may be a better buy than a sell today.
Chris Lau profile picture
@ted lujan Depends: every breakout quarter followed with strong selling over the last two years. The new CEO this time could change those odds for the better.
t
Forced to sell some of my holding to protect a 24.4% gain. Will buy back on a correction. Nokia is on a roll.
BarkingShark profile picture
@ted lujan remember you can always use a Trailing Stop order as a strategy... hopefully NOK stock continues to do well. (Hoping) is not a good strategy however.
fortbrepoels profile picture
I dream for a dividend and REMEMBER 6/11/2018 very good :)
r
Up 15% now on my NOK investment. The challenge now is to stay calm and patient and make cautious trades knowing you aren't going to perfectly get the 'max' money possible on the moves.

So far I haven't sold anything. Because other posters here on SA convinced me not to sell early, and the news flow was just so good, and the Q1 now was so good.. that I don't want to sell any at this price.

I think that is a lot of the rise. Even though 99.9% of people still think 'Nokia is finished', there is now some more people aware of how undervalued NOK is. But also pro-traders like me, we might have considered selling some at ~$5.. if this was 3 months ago. But now with the news and Q1 we don't want to sell.
J
OK, Nokia breaks through the $5.00 level, and may get picked up by some institutional investors. Anyone have a feel for where NOK is heading? $6? or will it even go to $7 this year?
dlvvlv profile picture
@JP295 Sub $5 again, level was not sustained long enough for bigger players to open positions.
E
@JP295 I have leaps and the target is $9. But you'll hear more people being pessimistic.
t
NOK up today 4.76%. What is making the stock move up with out any correction?
Chris Lau profile picture
@ted lujan My group calls me the 'horse whisperer' of stock price targets. Analysts don't get the job done right and create a need for articles like this on NOK.
Kmasse profile picture
@ted lujan With Q1 results in, the investors started to realize that the price gap to Ericsson is not justified. Now that the price hit once again 5 dollars it became “investable” for institutional investors. They don’t have many bargains on their selection list, but I think Nokia is one of those bargains.

www.marketwatch.com/...
f
@ted lujan @Chris Lau et al
Just a guess... someone settled the question about financing. I suggested several quarters ago that to speed adoption by the really big funds and bankers that a reverse split would push SP far above $5 to ensure macroeconomic ‘bumpiness’ didn’t cause harm to their cash buffers required under most finance rules. That would NOT be an insult to EV but would accelerate trade pressures, and in growth it would press upward. A good CEO will consider this.
It's time to watch the macro news for indications of a revs singularity like a top market celco c-band expansion or 5g by any name since ROW calls CBRS & CBand 5g. I suggest DISH has been without an announcement for a couple days and Apollo is their MVNO for rural deployment. Then there’s others receiving rural development support too. India always lags and runs slow but when they buy, they move the revs needle.
More :popcorn: maybe we can afford real butter...
L
The new CEO deserves credit and the war with China knocking out Huawei is a bonus, add in 5G getting traction and the new Block Chain add on and up we go. Buy any dip!!
ippotr profile picture
Sold. What rally? Make small profit. Market is stalling. Time to go to cash
Adambombfx profile picture
Bought 5,000 additional shares AH @ $4.84, total shares held to date 10,000

2,000 @ $3.39 on 11/14/19
3,000 @ $2.50 on 3/18/20

Averaged out 10,000 shares @ $ 3.85

For a minimum 5 year hold !

ERIC and NOK set to Dominate !
t
Nokia up 1.49% again today. lower volume. Any sort of good news should keep
Nokia creeping up.
Chris Lau profile picture
@ted lujan NOK needs to build a new base price at this range. Some Jan. 2021 overhang from those who bought the stock at $6-$9. After that's cleared, Nokia trades again on its fundamental growth prospects and expanded P/E.
s
NOK's never-ending turnaround more closely resembles twisting in the wind at the end of a rope than an impending resurgence. Some changes in management might loosen the noose and permit the afflicted party to breathe again.
d
@sanberdoo the CEO was already replaced.
N
My $NOK leaps will print.
C
@Nukems Jan 2023 $7..they were so cheap for so long I had too.
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