Nokia Corporation (ADR) (NOK) Will Prove To Be A Winner In 2013

Nokia will report cash balances on Jan. 24 in its earnings report, and then we will have a better understanding of the financial position of the company. However, I believe the positive news about the sales will have a strong impact on the stock, even if there is news of further decline in cash balances. Encouraging signs about the future prospects of the company will help soften the blow if there is a drop in the cash balances. However, the company will have to improve cash flows from operations soon, in order to deal with the cash issues. Furthermore, Nokia needs to improve its operations and supply chain. There is no use of having demand if you cannot provide the product on time. Fourth quarter sales could have been even better if the company did not face any trouble with its supply chain.

Conclusion

Nokia has undergone a substantial recovery, and sales figures for Lumia are encouraging. I believe Nokia will build on this strong quarter, and the company will carry on its rise. I expect next quarter sales to get a boost from the Indian market. We should remember that Nokia has a very strong customer base in India, and it is an extremely important market for the company. At the moment, Nokia is an attractive investment. I am not saying that 2013 will be an easy ride for the company. It will face intense competition from Apple and Samsung, but I believe Nokia will compete well with these giants.

The article Nokia Will Prove To Be A Winner In 2013 originally appeared on Fool.com.

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