“Moody’s slashed Nokia’s credit rating to ‘junk’ on Friday after the Finnish cellphone maker cut 10,000 more jobs and forecast a wider-than-expected loss, citing worries about its cash position and slow sales of new Windows phones,” Tenzin Pema and Terhi Kinnunen report for Reuters. “Equities analysts also cut their price targets on Nokia stock on fears the company would continue losing market share to Apple, Google and Samsung Electronics.”
“Moody’s is the third ratings agency to relegate Nokia to non-investment grade status, which means many institutional investors such as pension funds will not buy its bonds,” Pema and Kinnunen report. “S&P and Fitch made similar moves in April.”
Pema and Kinnunen report, “‘Today’s rating action reflects our view that Nokia’s far-reaching restructuring plan… delineates a scale of earnings pressure and cash consumption that is larger than we had previously assumed,’ Moody’s analyst Wolfgang Draack said in a note.”
Read more in the full article here.
MacDailyNews Take: Which one goes belly up first, Nokia or RIM?
[Thanks to MacDailyNews Reader “Carl H.” for the heads up.]
RIM
Nokia – barring a massive cash infusion from MS.
RIMM isn’t officially “junk” status – yet.
RIMMM still has a small but highly dedicated user base. If they can cut the losses and shrink the company, just MAYBE they can get through the year. But I have yet to see that happen.
RIMM. MSFT will pull a Google and takeover Nokia. It’s MSFT’s last chance to remain relevant in the mobile world, and Ballmer will spend any amount to secure a place at the table.
Google’s “Android” will die from lack of manufacturing partners. Samsung will takeover development of the open source code with the ultimate fork.
The Finnish Govt might help Nokia however I doubt the Canadians will give a hoot about the dumb a$$ folks at RIM. That was one huge “golden parachute” the two big boys got.
I doubt EU rules allow that support.
They sealed there fate when they hired a former Microsoft exec as their CEO. Board should be ashamed.
This is the time Apple should get out their cash mountain and buy NOKIA. – for 2 reasons,
1. They own a shed full of mobile patents and still have some of the best mobile tech skills and tech – their phones rarely drop out; unlike others I could mention.
2. It would stuff MicroShaft
Apple never buys dead companies walking.
Much cheaper to wait till the zombie is dead and then loot him for patents.
Which one goes belly up first, Nokia or RIM?
I have $5 bucks on RIM……….not betting, offering $5 to buy it.
I am probably paying too much.
$5 a share, or $5 altogether?
The news today was that Nokia had slipped below $2/share.
What do YOU think ChiMac meant?
above all, I think ChiMac talked about RIM.
RIM shares are around $10.
One would suspect that preening Nokia for sale to MSFT has been Elop’s strategy all along.
Nokia and/or RIM will be taken over soon, now that the price is right. No large corporation actually goes belly-up in the modern world, they just merge. As we all know, winning is privatized, losing is socialized.
Kodak
RIM still has a millions of Corporate IT DORK controlled users in the work force, as long as these Power Tripping MS/DORKS has IT power, RIM can survive for a very long time!
Nokia gets Rimmed has Microsoft flushes the loo.
Elop’s plan to devalue Nokia so much that it becomes a cheap buy for Microsoft then, returning to Microsoft employment as a Microsoft hero, is right on track.
seems “practical”, but I would imagine Nokia shareholders that lost big time would find the right lawyers, which in itself would be fun to watch monkey boy dance to, but if there is a merger, E-slop’s rewards would be in the form of a parachute.
Well deserved
Two little, two late to the smart party…like 5 years too late…to make a difference to save either MS or Nokia.
Nokia can’t go belly up. James T Kirk hasn’t crashed his unkle’s car yet, and that will have a Nokia communication system. 🙂
u rock
StarTrek X never happened. It’s so off-canon, it’s not even funny. JJ Abrahams should be shot in front of his family for destroying all of Star Trek for cheap effects.
Pulled out of the same trash can as Indy 4, StarWars 1-3 (the new ones), etc.
Doesn’t that seem a little severe?
No. Not at all. That was the mild version suitable for the public.
Conversely, I’m sitting atop a pile of AAPL gains to tall, that today I was forced to sell a bit to buy another motorcycle.
Sucks. =)
Perhaps Nokia and RIM could partner up and do the NokiMotion?
MDN sez: Which one goes belly up first, Nokia or RIM?
Last week I would have said RIM. But this week, having surprisingly underestimated just how much the public HATES Microsoft Metro phones, I’m betting on Nokia crossing The Oblivion Line first. I wish it were not so.
“If you lie down with dogs, you’ll get up with fleas.” Bad move Nokia. We warned you.
“Many institutional investors such as pension funds” – have been investing in Nokia till today?!?!?
And to think. All this because Microsoft bailed out Apple in 1997.
Bullshit. MS NEVER bailed out Apple. That’s just an urban myth that refuses to die, mainly used by MS shills.
Stop spreading that shit.
http://www.roughlydrafted.com/RD/RDM.Tech.Q1.07/592FE887-5CA1-4F30-BD62-407362B533B9.html
“If we want to move forward and see Apple healthy and prospering again, we have to let go of a few things here. We have to let go of this notion that for Apple to win, Microsoft has to lose. We have to embrace a notion that for Apple to win, Apple has to do a really good job. And if others are going to help us that’s great, because we need all the help we can get, and if we screw up and we don’t do a good job, it’s not somebody else’s fault, it’s our fault. So I think that is a very important perspective. If we want Microsoft Office on the Mac, we better treat the company that puts it out with a little bit of gratitude; we like their software. So, the era of setting this up as a competition between Apple and Microsoft is over as far as I’m concerned. This is about getting Apple healthy, this is about Apple being able to make incredibly great contributions to the industry and to get healthy and prosper again.”
-Steve Jobs (during 1997 corporate collaboraton announcement between Apple and Microsoft.