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I believe the NOK investment
horizon will be longer and very lucrative....
The more I think about the NOK investment, the more I
realize it is a horizon that involves two phases, both likely to be
very lucrative.
The first phase is all about the merger of both companies
which will yield over the next three years a combination of cost
reductions and higher overall revenue for the combined
entity. I believe this first phase has the potential to raise
the share price into the $13 to $14 area by late 2017 or early
2018.
The second phase is the world wide deployment of 5G.
This next phase will start to play out around 2019 and promises to
be a 4 to 5 year cycle. I believe this deployment will be
huge from a revenue point of view. The spoils will be divided
among the three top players: Nokia, Huawei and Ericson.
I believe that Nokia has a very decent chance to grab significant
market share. Regardless, with 5G rolling out around the
world and only three companies enjoying this huge revenue stream it
will be enough to lift the entire sector.
The company then will not only be lean and cost reduced
but also with a really strong balance sheet. This phase will
allow additional growth, one that could be high. I would not
be surprised if the stock reaches into the high teens by
2021-2022.
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lt cap,
Not that anyone would necessarily know, and not that it matters
at this point, but it's curious to me why NOK shares jump 3.5% on
news that isn't a surprise at all (enough shares to follow through
with their takeover). Had been warming myself up to the idea of
accumulating more in the low 7's - good luck with that, lol. I know
that in the larger time-framed picture, 3% isn't of consequence.
Perhaps NOK is entering that 'black hole' of beta that INFN and
CIEN are always in (my God, but the sell-down in CIEN has been
brutal - and with no positive catalysts that I can see for a
while.) At least I hope the date that they stole..um, I mean -
'acquired' those shares was before today's rise. And I hope NOK
keeps a small, but nice, dividend, as that would be an extra bonus
over the years.
The one question I do have is this, altho it seems rather naive:
What is the sector that NOK, Ericsson, and Haiweu (sp) will divide
among themselves.? Doesn't sound like a clean op net play ('cept
for the ALU component, and Cisco partnering with Ericsson), but I'm
not quite clear what it is they compete over - Handsets?
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Author:
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Jam
ok
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Subject:
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Off Topic
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Sentiment:
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Neutral
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Date:
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01/08/16 at 11:40 AM CST
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As it relates to the upcoming G5 deployments, Huawei, Ericson
and Nokia are companies that compete in the Wireless communications
sector. Of course Nokia is now a complete Communications
company with wireless, Routing and Switching, Optical and Service
divisions.
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Author:
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LongTerm
CapGains
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Subject:
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Off Topic
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Sentiment:
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Neutral
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Date:
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01/08/16 at 1:06 PM CST
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