Nokia Corp (ADR) (NOK)

PRDinvestments (36.53) Submitted: 6/02/08 8:12 PM : Start Price: $27.80 NOK Score: -11.49

NOK below 28??? That's nutz!

Marketgrader valuation puts it's PE at upper 20's.

It is now below 10.3!

People DRASTICALLY oversold Nokia on its last earnings, even though they beat estimates. Even if outlook for the future isn't as great as previously, it does not deserve to be at a PE of 10!

Nokia is by far the world leader in mobile phone sales.They also are one of the first to actively seek business in AFRICA, which is the last of the "emerging" markets to even begin to take off. Regionally, we have seen latin america, south america, east asia, and all these other regions take off. Africa has barely budged.
Looking long term, you have to look into the future. Africa is the next big Emerging Market.

Also the fact that they are not strong in America right now is a HUGE POSITIVE. The fact that most americans dislike their cellphones , along with the fact that Nokia holds practically no market share in America, leads to huge growth potential. They need more and better marketing here!! (Hence, the brilliant purchase of ENPOCKET!)
The downfall of Motorola and Sony will help this out, as people's perception of both are falling like a rock.

Also the acquisition of NAVTEQ and ENPOCKET shows the encouraging strategy that Nokia will take on in America in the next few years. Both technologically and through marketing.

Their new nano-cell technology that they are working on is very promising. New technology is what american's and other developed countries are craving. If nokia makes a major breakthrough here, the gains are endless.

Also, a world recession will help nokia more than any other phone company. With their dominance in the low-cost market, nobody can compete. They also are very solid and have huge cash reserves, leaving the short term fluctuations of the world economy to do little to no damage to the company.

This all matched with their stellar dividend and DRIP lead to a positive valuation, and the next earnings cycle will prove my point I believe.

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