01-10-2012, 09:26 PM
(01-10-2012, 09:20 AM)thefarside Wrote:very gd article. i am not looking at its stock actually when i posted this thread...but more for its bond(30-09-2012, 12:17 AM)pianist Wrote: Anyone vested with this counter? I just noticed its dividend yield is quite yummy.
It is likely that the dividend will soon disappear, as the company is now burning cash and the balance sheet is deteriorating rapidly. While things can turnaround quickly in tech, the market is now focussed on Nokia's failures to gain traction in its smartphone business. They still have a massive presence in the market, but I think the investments required to compete in the smartphone market is causing the company to bleed heavily at the moment, plus their low-end business is coming under substantial margin erosion due to well... other low end manufacturers.
If you want to punt on this stock, the time to buy would be after they have cut the dividend, not before.
http://www.businessweek.com/news/2012-09...h-dwindles