We put Nokia on the Short side last year in May (Note HERE). It seems several of our primary concerns have either played out or are in the process of making their way into the stock.
While telco equipment companies (e.g. ERIC) are complicated messes, they typically see rising tides at the entrance of a new technology generation. And after a series of ugly earnings results, and downgraded sell side interest, we think both stocks are probably worth a look on the long side.
This goes to the Bench pending deeper understanding of Nokia’s competitive position and product roadmap in 5G, as well as understanding a clearer path to FCF generation.