Bull or Bear When Nokia Corporation (ADR) (NOK) Cuts Dividend?

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Blackberry and Apple Inc. (NASDAQ:AAPL) are More Innovative

BlackBerry is also coming back with its own Blackberry 10 operating system. The new Blackberry Z10 phone has been reported to have strong pre-orders and pre-registrations. Analysts at TD Securities mentioned that the Blackberry Z10’s sales were better than they expected them to be. Some iOS and Android users were turning to the new Blackberry. From a different aspect, Blackberry is considered a global innovation leader. According to Intellectual Asset Management,  both Blackberry and Apple were in the top 14 companies which had at least 3,400 US patents. For Apple, two analysts of Piper Jaffray mentioned that Apple might launch as many as 5 new products soon, including Apple Radio, iPad mini with Retina display, iOS 7, iPhone 5S, and Apple Television.

At the current price of $16 per share, Blackberry is worth $7 billion. The market is valuing Blackberry at only 3.55x EV/EBITDA. Apple, with $429.5 billion in market cap, is a bit more expensive at 6.58x EV/EBITDA. Nokia had a negative LTM EBITDA, so the EV multiple is not valid.

I’d Rather Wait

Nokia has been trying to turn itself around, and we are seeing some positive signals. It has raised more cash for reinvestment in several ways, including a dividend cut, the headquarter sale, and bond issuance. However, technology changes fast, and we never know what the trend will be and who will ultimately benefit in the future. I would rather wait to see further developments before initiating any positions.

The article Bull or Bear When Nokia Cuts Dividend? originally appeared on Fool.com and is written by Anh HOANG.

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