Posted on 06/15/2012 6:26:30 AM PDT by SeekAndFind
In an announcement falling somewhere between a suicide note and an expression of optimism for the future Finnish cell-phone has-been, Nokia (NOK) announced yesterday that it would be laying off 10,000 employees between now and the end of 2013. Obviously the negative part was the plan to lay-off nearly 20% of its existing work-force. The upside was that Nokia seems to truly believe the company will exist as a freestanding concern in 18 months.
Unwilling to see the glass as anything but half-empty, Wall Street sent NOK shares down 16% Wednesday. Nokia shareholders should be used to such pain by now, the stock is down over 50% just in 2012 and a stunning 91% since the release of Apple's (AAPL) iPhone.
Nokia's not alone in its suffering. Fellow fallen idol Research-in-Motion (RIMM) also warned recently, citing... well, let's be honest, it doesn't matter what RIMM cited. The company is in trouble and there seems little on the horizon likely to stop the decline.
The question for those inclined towards catching falling knives is whether or not NOK and RIMM have finally reached the point at which the intrinsic value of their assets exceeds the value of their shares. In other words, are either Nokia or RIMM "value buys." To explore the idea Breakout welcomed Jon Najarian, kingpin of OptionMonster.com and former RIMM shareholder.
To say Najarian is a former "shareholder" of RIMM is actually a wild overstatement. What the former options pit trader actually did was trade RIMM at the beginning of 2012, buying in the teens with the idea that the company could be a potential take over candidate in the low 20's. The stock popped, Najarian sold and RIMM has dropped like a stone ever since, falling nearly 30% in since January 1
(Excerpt) Read more at finance.yahoo.com ...
I think RIMM might survive due to corporate and gov’t purchases but outside of that “It’s Dead Jim”.
If Windows 8 takes off like I think it will (at least on tablets and phones) then Nokia will be positioned well. If not......Nokia is going down.
You cannot logically use the words “Nokia” and “ruin” in the same sentence. They are incompatible. /h
RIMM offers data security that none of the other cell phone players even try to compete against. They could at some future date become competative in the general market.
IMO, the security requirements have been incompatable with pumping out gazillions of apps to attract general consumers.
Headed for BK almost for sure. Classic case of Innovators Diilemma
At one time there was no better phone to have than a Nokia.
The for awhile the Iphone was the phone to have.
Now the Android phones are far superior. Nokia has a big challenge to overtake them or even to get to just the level of the Iphone.
Androids have major security issues with multiple reported issues of Malware surfacing. I Phone leaks like a sieve leaving data vulerable. RIM remains the only secure option, IMO.
This is very true. I was speaking about how advanced the phones have become. You make a very good point.
In what respect, software or hardware? I went phone shopping a few months ago and as a Linux advocate, I was initially much more inclined toward Android. My requirements were stability and simplicity. If I want to experiment, I'll do it on a computer, but my phone has to be utterly dependable. I did a lot of reading, then spent many hours at Best Buy, playing with various Android phones and even the iPhone 4S. I finally concluded the iPhone had a bit simpler interface, and even in the Beta stage, Siri was very appealing. I can't wait until iOS6 comes out. The main criticism I have of the iPhone is having to use iTunes as the software interface beween the phone and my Windows computer. By comparison, my Linux computer sees the Nook tablet simply as another hard drive.
I use Windows 8 on my computers and I love it. I haven't tried it on my tablet or phone yet.
Just wait until you are out on the road, you need to access a needed business website and and you can't get it on your Iphone. Then the person next to you with an android says, let me try and right away their phone was able to pull it up.
In other words, I been there, done that. I got rid of the Iphone at the first chance I got.
Unstable android? That's just not true. Even IF the Iphone was more stable, so is a rock sitting out in my yard but that does not make the rock the better choice.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.