Nokia Corporation (NOK)

For most that read this, you'll likely wonder...NOKIA?  You must be nuts!  Yes I am, but let's take a look at what is going on in the wireless handset business.  Palm...acquired.  Motorola...acquired.  RIM...rumors are swirling.  Nokia...rumors are swirling as well.


Jan. 26- Nokia Corp. says it sold 19.6 million smartphones in the quarter, down from 28 million handsets a year earlier. That includes over 1 million Lumia devices running Microsoft's Windows software. The new Lumia 800 and Lumia 710 hit stores in Europe / Asia in November, while T-Mobile started offering the 710 in the U.S. in January 2012.


Why should we care?  We shouldn't, but Nokia has a current valuation of around 19 billion dollars.  It sounds like a ton of money, especially if you are Austin Powers,  but not much if you are Microsoft sitting on gazillions of dollars, and wanting to boost the patent portfolio.  Forget an Apple, Samsung, or HP acquisition of Nokia.  Highly unlikely, although there are numerous rumors of this going around.  Remember owning patents, is an effective strategy stopping other manufacturers from suing the crap out of you.  Nokia is definitely sitting on many patents.

• Nokia has 2000 wireless patents

• Apple pays Nokia

I have acquired 800 shares of NOK in the last 4 months from $8 a share, down to $5 a share.  The dividend (although reduced) is an added bonus if the stock appreciates.  This is purely a speculative play, and not for the faint of heart.  I'm only holding off for a buyer of Nokia, because I have a 12-18 timeframe to exit this position.  Buy anywhere around $5, dollar cost average anywhere around $4.25, and my apologies if it dips below $4.


Disclosure:  I am long Nokia.