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OT - NOK results
summary
OT - NOK - Motely Fool may not be good for much, but they do
often provide a good summary of results - and such seems to be the
same with NOK
fool.com/in...s.aspx
Not quite sure what the 'equipment convergence' issue is -
technical problems that cost $ to alleviate but only impacted a
small number of customers? Not sure about that.
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Not sure I fully understand the issue, but I believe that
convergence relates to equipment swaps. Nokia and Alcatel
both had Wireless Network equipment, when the companies merged,
they chose between the two sets of equipment, i.e. one was chosen
and the other one probably was soon to be "end-of-lifed". So
it is my guess (and that is all it is, a guess) that some customers
may have required Nokia to swap their equipment towards the one
that was chosen to continue being supported. A costly problem, but
one that must be carried out to preserve customers.
I can also understand why Suri states that the workload is heavy
and costly. I am not sure if he has given guidance on when
this equipment swaps costs will come to an end.
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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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10/28/17 at 9:33 AM CDT
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The guidance for Network's Equipment swap outs is $1.4B going
into 2019. So this item will weigh on liquid cash
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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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10/29/17 at 9:26 AM CDT
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lt cap,
Thanks for all the details posted. I'm uncertain of my
amateur analysis. But the question of to what extent one currently
stays in NOK or not appears to me as -
Even if there are no visible drivers of growth until 2019 at the
earliest, one might stay in the stock for the dividend, which would
make it worth the wait.
$1.4 b for the necessary support of legacy-like equipment has
negative downstream consequences, and impedes free cash, as you
cite. Might that not be a reason
to cut the dividend, at least until the expected pick-up in
business in 2019-20?
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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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10/30/17 at 2:02 PM CDT
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Yes the $1.4B price tag for equipment swaps is a steep amount,
gives me pause and I retract my assesment that the dividend is
safe. I am thinking of biting the bullet and reducing my
position and waiting to put back money into Nokia at a more
opportune time. Hate to do it with these steep loses, but it
may be best.
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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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10/31/17 at 6:49 AM CDT
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