Re: Microsoft is the plague: Nokia stock drops 14% as 1,000 employees walk out
Quote:
Originally Posted by cBeam
(Post 946283)
Gerbick, I know there is no way to get a straight answer from you what your point is, but maybe you can explain:
- Nokia stock is on a downward trajectory since 2007
- A new CEO is brought in, presumably to reverse the downward trend
- Nokia shares gain slightly over the next few months (from about $8.50 to about $11.50, which is about plus 35% from worst to best)
- CEO introduces his new strategy and stock is down 20% within 2 days (actually more than 25% if you include the drop in share price on Thursday right before the new strategy was revealed)
In the meantime, the tech heavy Nasdaq Composite index is up more than 25% within the last 6 months.
What did Nokia management do to increase shareholder value?
What did Elop do differently to comfort the markets?
If Microsoft is not the plague for Nokia, why does the market think that they have to cut 20% off Nokia's value within 2 trading days after announcement of the new strategy?
Is the market just wrong? Or is the market right and tells us "too little, too late, wrong direction"?
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My answer to this question that isn't addressed to me is that Nokia finally made it obvious that they were having dire problems, so the stock fell a bunch. If they had made the same information clear and gone all Meego, the same drop would have occurred. If they had done virtually anything, the same drop would have occurred.
I'm ceasing to be a Nokia customer no matter what happens to the stock, but I expect the stock price to swing back and am wondering if I should buy some about now, just for fun... |
