Congratulations - A Nokia Bankruptcy Is Baked Into The Price Already
May 17, 2012
Finally, Nokia (NOK) is so cheap that if the company was to go bankrupt today, its shares would be worth more than they are now. If we look at the company's balance sheet, we see why.
As of right now, Nokia's market value is $10.7 billion. In the latest quarterly report, Nokia had cash of $1.82 billion in addition to short term investments of $8.24 billion. The company's total account receivables sum up to $6.19 billion. In addition, the company's current inventory is worth $2.35 billion. The company's current total assets, according to its last SEC filing are worth $22.62 billion. If the company was to go bankrupt, everything would be up for a sale. This includes things like Nokia's plants, buildings and equipments, which are worth a total of $1.76 billion. If we add all the company's assets, cash and investments, we are looking at a total of $33 billion.
On the other hand, the company is not free of liabilities either. The company owes $4.9 billion and most of this amount (i.e., $3.8 billion) is long term debt. All Nokia's debt and liabilities total up to $22 billion. When company's total liabilities are subtracted from its assets, we have a balance of $11 billion.
However, this is not all. The company's assets of $33 billion don't include its patent holdings. Nokia has invested more than $62 billion in the last 20 years to build its patent portfolio. The company currently earns about $700 million a year from its patent royalties. Nokia's patent portfolio includes 10,000 patents, some of which are very important for building a mobile device.
http://seekingalpha....e-price-already
3
Nokia Dieing Slowly
Started by supashot, 2011-08-12 12:22
|
356 replies to this topic
#352
lomatopo
Titanium Member Posted 2012-05-18 10:14:31
Gartner Says Worldwide Sales of Mobile Phones Declined 2 Percent in First Quarter of 2012; Previous Year-over-Year Decline Occurred in Second Quarter of 2009
Samsung's Android-Based Smartphone Sales in First Quarter of 2012 Represented More Than 40 Percent of Android-Based Smartphone Sales Globally; No Other Vendors Achieved More Than a 10 Percent Market Share Egham, UK, May 16, 2012— Worldwide sales of mobile phones to end users reached 419.1 million units in the first quarter of 2012, a 2 per cent decline from the first quarter of 2011, according to Gartner, Inc. This is the first time since the second quarter of 2009 that the market exhibited a decline. “Global sales of mobile devices declined more than expected due to a slowdown in demand from the Asia/Pacific region,” said Anshul Gupta, principal research analyst at Gartner. “The first quarter, traditionally the strongest quarter for Asia – which is driven by Chinese New Year, saw a lack of new product launches from leading manufacturers, and users delayed upgrades in the hope of better smartphone deals arriving later in the year.” http://www.gartner.c....jsp?id=2017015 Attached Files
#353
IsaanUSA
Senior Member Posted 2012-05-18 20:27:28
users delayed upgrades in the hope of better smartphone deals arriving later in the year.” So many "big" announcements of technology to come. Lots of people are waiting. #354
Crushdepth
Dismembered Posted 2012-05-18 21:55:24
users delayed upgrades in the hope of better smartphone deals arriving later in the year.” So many "big" announcements of technology to come. Lots of people are waiting. 3G in Thailand... #355
IsaanUSA
Senior Member Posted 2012-05-18 22:34:25
users delayed upgrades in the hope of better smartphone deals arriving later in the year.” So many "big" announcements of technology to come. Lots of people are waiting. 3G in Thailand... EDIT: I don't really keep up to date on the different smartphones and different carriers, but I think nearly every smartphone has 3G service now. Only the original iPhone did not have 3G Edited by IsaanUSA, 2012-05-18 22:48:07. #356
oilinki
Senior Member Posted 2012-05-19 02:46:24
Nokia do have loads of patents which bring E500M each year. The patents alone can easily be valued as E5B.
Since 2007 Nokia's cash have dropped from E10B to E5B. Then again most of the time Nokia has made profit during these years. So where have the money gone? Paid loans? Paid dividends? Naviteq? #357
IsaanUSA
Senior Member Posted 2012-05-21 21:26:32
Here's a fresh batch of Nokia in the media.
A lumia being used as a hammer A comparison of RIM and Nokia as seen by American tech guys http://www.engadget....roubled-titans/ Windows phone beating iPhone in China http://news.cnet.com...ws&tag=readMore |
Sponsored By: |
