Thursday, March 25, 2021 9:55:21 PM
Long-term subscribers will be familiar with Nokia. It was originally recommended back in May 2018 for – its 5G portfolio.
THe investment thesis was playing out exactly as predicted.
But then the management team withheld material information from investors.
In the Q3 2019 earnings release, management drastically lowered profit guidance--- and suspended the dividend to--- “increase R&D expenditures.” I put that in quotes because it was an excuse management used.
The problem is that management had to already know this would happen at the time of the previous earnings call… when Nokia delivered great results.
Companies know their approximate cash position at least two years out.
Companies know their research and development (R&D) budgets years out.
Companies know their competitive position in the market.
Management had to know it was facing pricing pressures during the previous earnings call.
But to boost share prices, the company let consumers think it had a fantastic quarter three months prior… all the while planning on slashing the dividend and reducing pricing to lower operating margins.
Put more simply, instead of coming clean when it should have, the management delayed the announcement in hopes of a miracle.
XXXXXXX worked as a technology executive for the better part of two decades, most of that with publicly traded companies. A professional executive management team would have been transparent with investors ahead of time. Instead, the management team lied to us by omission.
Nokia’s board of directors obviously felt the same way. The board replaced both the chief executive officer (CEO) and chief financial officer (CFO) for this transgression.
On August 1, Pekka Lundmark began as CEO. And Marco Wirén began as CFO on September 1.
Nokia paid a steep price for its poor judgment. The company is now trading at one of the lowest levels it has seen in 20 years. And that is why the excitement this second time around.
The timing for the investment couldn’t be better, as Nokia is turning the corner on its 5G offerings after its operational “hiccup.”
And now we can get into Nokia at a price nearly 20% cheaper than when we sold it last year.
end of Chapter One---
Recent NOK News
- Form 425 - Prospectuses and communications, business combinations • Edgar (US Regulatory) • 09/23/2024 09:24:27 PM
- Apollo Eyes $5 Billion Investment in Intel; TSMC and Samsung Explore UAE Chip Projects, and More • IH Market News • 09/23/2024 10:32:25 AM
- Nvidia Subpoenaed by DOJ, Athira Pharma Shares Plunge 71% After Study Fails, Zscaler Falls 15% Post-Earnings • IH Market News • 09/04/2024 09:50:25 AM
- Intuitive Machines Soars 18% on NASA Contract, Intel Considers Splitting Operations, Dell Reassesses Selling SecureWorks • IH Market News • 08/30/2024 10:00:08 AM
- High Volatility Expected in Nvidia Report, Ambarella Soars 20%, Hertz Strengthens Board, Apple Cuts Jobs • IH Market News • 08/28/2024 09:50:36 AM
- FuboTV Soars 12% After Venu Sports Block, Goldman Sachs Lowers U.S. Recession Odds, BHP Ends Chile Strike • IH Market News • 08/19/2024 09:28:19 AM
- Berry and Glatfelter Announce Magnera Board of Director Appointments in Connection With Proposed Merger of Berry’s Health, Hygiene and Specialties Global Nonwovens and Films Business With Glatfelter • GlobeNewswire Inc. • 08/16/2024 10:45:46 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/24/2024 10:03:08 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/19/2024 02:31:09 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/18/2024 10:02:53 AM
- Nasdaq Tech Stocks Show Partial Recovery; Oil Prices Rise • IH Market News • 07/18/2024 10:01:11 AM
- TSMC Net Profit Hits $7.6B; Nokia Sees 32% Decline in Operating Profit; Novartis Boosts Outlook After Profit Surge • IH Market News • 07/18/2024 09:53:54 AM
- Alphabet Nears $23 Billion Wiz Acquisition, Trump Media Stock Soars 63% Pre-Market, and More • IH Market News • 07/15/2024 10:34:36 AM
- Paramount-Skydance $28B Merger, Boeing Agrees to Plead Guilty with $243.6M Fine, and More News • IH Market News • 07/08/2024 10:37:52 AM
- U.S. Stocks May Move Back To The Upside In Early Trading • IH Market News • 07/01/2024 02:04:43 PM
- U.S. Stocks Showing Significant Downturn After Seeing Early Strength • IH Market News • 06/28/2024 08:52:21 PM
- Nike Stock Drops 14% in Pre-Market; Nokia Acquires Infinera for $2.3 Billion, and More News • IH Market News • 06/28/2024 10:50:25 AM
- Interactive Brokers Loses $48 Million on NYSE, Amazon Achieves Historic Market Value, and More News • IH Market News • 06/27/2024 11:13:41 AM
- iPhone Sales Skyrocket in China, Nvidia Surges in Pre-Market Following xAI Fundraising, and More News • IH Market News • 05/28/2024 11:37:48 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/13/2024 05:24:29 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/13/2024 11:49:28 AM
- U.S. Futures Rebound Amid Global Market Fluctuations, Oil Prices Decline • IH Market News • 04/18/2024 11:15:03 AM
- TSMC Revenue Rises 13% in Q1, Alcoa Exceeds EBITDA Expectations Despite Loss, and More Earnings News • IH Market News • 04/18/2024 11:14:18 AM
- Lumine Group Completes the Purchase of the Device Management and Service Management Platform Businesses from Nokia • GlobeNewswire Inc. • 04/01/2024 09:07:48 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 03/04/2024 05:13:26 PM
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