“Yes, Nokia the Finnish mobile device maker as we know it, is doomed for bankruptcy and reorganization. Many of us, of course, still refuse to see the writing on the wall and invest accordingly,” Kofi Bofah writes for Seeking Alpha. “Nokia, a one-time story stock, has been shockingly bludgeoned from $40 to today’s meager $2 bid that is a cut above the casino penny stock zone. On the road to zero, Nokia cheerleaders, such as Jonathan Yates, have championed this battered stock as the ‘Next Ford.’ Longs are quick to identify Nokia as a turnaround play and prospective receptacle for government and corporate bailout cash.”
“Despite its recent gaffes, Nokia still touts an impressive brand name and extensive patent portfolio. As Microsoft (MSFT) has quickly learned, however, a brand name and patented technology cannot stop the bleeding of a structurally damaged organization,” Bofah writes. “For Nokia shareholders, any cash infusion will prove to be a mere quick fix solution and distraction from the fact that this business is now a dinosaur. At this point, it is inevitable for corporate vultures to encircle headquarters, before Nokia inevitably declares bankruptcy and sells off scraps to the highest bidder.”
Bofah writes, “The 2007 Apple iPhone changed the game… In terms of a last-ditch effort to save the company, this Nokia Lumia project has degenerated into a complete fiasco. Today, the looming iPhone 5 release dominates the top end of chic, while Android phone makers slash prices to attract consumers who demand low-cost functionality. Severe losses, write downs, cost cuts, and layoffs are now the order of the day at Nokia.”
Read more in the full article here.
MacDailyNews Take: Revolutionary.
Apple’s new iPhone could do to the cell phone market what the iPod did to the portable music player market: crush it pitilessly beneath the weight of its own superiority. This is unfortunate for anybody else who makes cell phones, but it’s good news for those of us who use them. – Lev Grossman, TIME Magazine, January 9, 2007
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