Nokia Corp (ADR) (NOK)

OneStarHero (< 20) Submitted: 5/30/07 11:56 PM

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Yes the stock price is at the 52 week high, but don't use the price to judge how expensive a stock is. The real measure is the P/E ratio, which is at 15. The earnings have been keeping pace with the stock price, so the P/E ratio has stayed around the same area as the stock has risen.

As far as competition goes, who are you afraid of? MOT, their main competitor, is in the middle of a major blowup. AAPL will be lucky to make a small dent in the industry this year. NOK makes most of their money overseas, and the Iphone won't even see Europe until Q4 2007 at the earliest, with Asia coming even later. NOK's best selling phone is the best selling phone on the planet, the dirt cheap Nokia 1100. They sold over 200 million units of the 1100 model alone since 2003 (there have only been 100 million Ipods sold in the history of the brand, including all of the various iterations). One niche phone in the US is not going to stop the monster that is NOK.

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javiergf (51.26) Submitted: 6/01/07 3:59 PM

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I agree with some things you said. The issue is that the Nokia 11000 doesn't leave much margin, I think is around 3$ per phone. The way you actually make money are with expensive phones like the 9500, 9300, Iphones and so on.Everyday more and more phones are using windows mobile, if one day Nokia has to yield the symbian for Windows Mobile their margins will be even smaller.
Mot is launching new phones and cutting costs, Iphone may be a success in the ultra expensive niche and don't forget that getting rid of the networks division may have some mid term issues on Nokia too.

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1poorguy (97.84) Submitted: 9/17/07 3:53 PM

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Be careful with PE. It can bite you on the behind really easily. Better to use a DCF model (which is still very dependent on the values you input).

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ajfabb (98.88) Submitted: 5/06/08 2:04 PM

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"if one day Nokia has to yield the symbian for Windows Mobile their margins will be even smaller."

Not to mention their battery life if they switched to that hog of an OS. ;-)

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