Should i buy or sell nokia stock now

Posted: chelll Date: 08.06.2017

For years, telecom equipment manufacturer Alcatel-Lucent NYSE: ALU has struggled to regain its former glory, with the stock never having recovered from its brief surge during the tech boom. Even Alcatel's bounce during the mids proved short-lived, as increased competition has largely proved impossible for the company to overcome. Now, Alcatel is considering its best way forward, and while the future is uncertain, at least some investors think that Alcatel's future is more promising than its past.

Let's look at three of the key factors that could push shares of Alcatel-Lucent higher. Arbitrage in its deal with Nokia could support a mild rise in Alcatel shares. In April, Alcatel-Lucent agreed to a deal with Nokia NYSE: Under the deal, Nokia and Alcatel will merge, and Alcatel shareholders will receive 55 Nokia shares for every Alcatel shares they currently own. Unusually, Nokia's offer actually represented a discount to the then-prevailing share price for Alcatel, but shares of Alcatel had already climbed in anticipation of a potential deal.

Since then, though, shares of Alcatel have fallen enough so that their current price represents a slight discount to the value of Nokia stock that investors will receive if the deal goes through.

Nokia-Alcatel is stronger as a combined company than Alcatel is separately. The other aspect of the Nokia-Alcatel merger is that proponents of the deal believe the combined company is more likely to succeed than either of them are separately.

should i buy or sell nokia stock now

Certainly, with Alcatel having been depressed for years, bringing Nokia into the mix seems like a good way to try to shake things up and find new avenues for growth. Nokia CEO Rajeev Suri argued at the time of the announcement that the Alcatel merger should help the combined company be more innovative and achieve greater economies of scale in some key operational areas.

The fact that shares of both companies fell following the merger announcement points to uncertainty from investors about the eventual impact of a Nokia-Alcatel combination. Yet most of the criticism of the deal has gone against Nokia for agreeing to buy all of Alcatel rather than simply carving out the best pieces of the company.

For Alcatel investors, the opportunity to participate in Nokia's future growth is an unexpected dividend that could forex profitable traders off greatly in the future -- and let shareholders of both companies profit.

Why Alcatel-Lucent Investors Hate the Nokia Deal (ALU, NOK) | Investopedia

The Internet of Things could send the whole telecom equipment industry higher. One of the biggest opportunities in the telecom equipment space is in the budding Internet of Things concept, where both technology companies and other previously unrelated businesses are looking at the potential applications of collecting and analyzing data.

With makers of everything from transportation and heavy equipment to refrigerators and other consumer devices all looking at Internet-of-Things initiatives to drive efficiency gains, Alcatel and Nokia both have the chance to become leaders as sales of IoT-related equipment start to ramp up.

The should i buy or sell nokia stock now question is whether Alcatel and Nokia can widen their current sales base to sell to as many players in the Internet of Things as possible. Rather than simply going to telecom companies and banking on the need for upgraded infrastructure, the two equipment makers could go directly to manufacturers forex pivot point calculator other industries and offer the necessary technology without using an intermediary.

That method might well be the best way for Alcatel or a combined Nokia-Alcatel to maximize profits from the budding trend. Alcatel-Lucent's seemingly imminent merger with Nokia certainly links the two companies' share-price prospects, nasdaq otc stock trading hours in the short run.

For those looking for a long-term play on the space, is binary options legal in malaysia, Alcatel stock could well be a cheaper way to get into the continuing Nokia and its huge potential successes.

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Nokia Oyj - NYSE:NOK - Stock Quote & News - TheStreet

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The telecom equipment industry has been extremely competitive in recent years, and Alcatel-Lucent NYSE: ALU has worked hard to try to hold its own against fierce rivals. In light of the company's Many sectors of the stock market have been ripe for consolidation, and among telecom-equipment stocks, Alcatel-Lucent NYSE: ALU has joined the merger craze by agreeing to a combination with Alcatel-Lucent and Nokia have a history of difficult mergers.

But, their merger with each other may turn out to be the right fit for both companies. Nokia reported a narrower decline in fourth quarter net profits than Wall Street was looking for. Nokia's warning for network equipment sales next year catch some analysts off guard. Wall Street expects Nokia to deliver year-over-year decline in earnings, while revenue is projected to rise strongly.

Morgan Stanley raised its rating, arguing in a report that shares are low enough to buy the stock. NOK or its shareholders. At one point, Nokia shares It has been an eventful summer for Finland's Nokia NYSE: Nokia's shares are under pressure in light of Ericsson's third quarter profit warning but Nokia's cost cutting skills may help it cushion any blows.

Learn about Qualcomm's different operating segments and its competitors in each segment, such as Texas Instruments, Nokia Learn the benefits available to investors if they choose the option to include allocations to the telecommunications sector Read about the factors that drive share prices in the stock market, and learn some of the trends in the telecommunications Explore the effect of a merger and understand how the process affects shareholders of the newly merged firm in terms of stock No thanks, I prefer not making money.

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