1. JamesDax3's Avatar
    Nokia: The Recovery Begins; One Analyst Turns Bullish

    Quotes concerning RIM:

    Meanwhile, Townsend consider the situation at Research In Motion to be a wild card for the outlook for Nokia.


    We believe that there are two issues for RIM that relate to NOK, he writes. First, we believe that RIM is now where NOK was approximately a year ago. There was no longer any doubt as to the declining state of the smartphone business but also no clear path to recovery. As we know from Nokias last year, the recovery required bold action and the a long lead time to the actual point of product improvement. We believe investors should wait until the recovery is clear which in our view is not yet the case with RIM, but is now on the near horizon for NOK.

    Second, RIM management on the quarterly conference call made it abundantly clear that the company is seeking a new partnership that will allow it to enhance its consumer appeal but allow it to focus its attention on its core historical strength with the enterprise, he adds. We believe that this strategy carries a number of risks, but also believe that Nokia/Microsoft represents the most likely candidate for such a partnership. We have no data points to support that this will happen or that Nokia/Microsoft would want it to, but believe it to be a real possibility over the next six months. Should it occur we believe it would be perceived as a meaningful positive for NOK shares.
    Interesting. This isn't the first time that these 3 names have been discussed together either. So then would this be a good partnership? What say you?
    04-02-12 06:41 PM
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