NOK

Siemens Simplifies; Nokia Diversifies

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German conglomerate Siemens (click ticker for report: ) put its 50% stake in Nokia-Siemens Networks on the chopping block just a few weeks ago, and the firm already has found a buyer: Nokia (click ticker for report: ). Nokia will pay Siemens $2.2 billion (€1.7 billion) for the half of the joint-venture it doesn’t already own—not a bad price for a business that reported €13.8 billion in revenue and €822 million in operating profit during 2012. With adjusted EBITDA of €1.09 billion, Siemens let go of the stake for less than 3x EBITDA.   Image Source: Nokia-Siemens Networks Annual Report With its mobile phone business sputtering, we certainly like the deal for Nokia. The joint-venture has been free cash flow … Read more

Price Momentum Got Ahead of Fundamentals at BlackBerry

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Canadian smartphone maker BlackBerry (click ticker for report: ) reported weak results for its fiscal year 2014 first quarter Friday morning. Revenue increased 9% year-over-year to $3.1 billion, which was well below consensus estimates. Earnings per share had several moving parts, but when adjusted for one-time issues, came in at a loss of $0.06. The loss was a drastic improvement from the same period a year ago when the company lost nearly $1 per share, but fell short of consensus expectations calling for a slight profit. BlackBerry 10 shipments were also below consensus estimates, coming in around 2.7 million units compared to the 3 million units the Street anticipated. Geographic Performance Image Source: BBRY Q1 FY2014 Earnings Release Geographic data reveals exactly … Read more

Revenue Growth Not an Issue at Synaptics

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After persistent rumors surrounding weakness in Samsung Galaxy S4 sales weighed on the stock, touch-screen control supplier Synaptics (click ticker for report: ) raised its fourth quarter outlook Tuesday. The increase wasn’t a small one either–the firm increased its revenue outlook to the range of $227-$230 million, much higher than the initial guidance calling for revenue in the range of $190-$205 million. Gross margins are expected to be around 50%, which will be a modest improvement from the previous quarter. Though no company ever likes to see demand cuts from one of its largest customers, it doesn’t appear that the cut will have much impact on Synaptics. The firm provides technology for all sizes of touch screen experiences, and it … Read more

ICYMI — Video: Will Hasty Policy Facilitate the Next Leg Down, or Do We Have It Coming Anyway?

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President of Investment Research and award-winning author of Value Trap: Theory of Universal Valuation Brian Nelson explains how US policymakers are stuck between a rock and a hard place, and how the market may be factoring in too high of a probability of a return to normalcy before 2021. This and more in the latest video report. Summary Make sure you review Value Trap on Amazon. Do so here. We think those that bought equities near the bottom of this swoon may be looking to take profits at present levels. The market is currently reflecting an 80%-85% probability of a return to normalcy before 2021, which we believe is too high at this time. Our main concern is that government … Read more