Is Nokia Doing Anything Right?

The company announced it’s teaming up with Microsoft in the smartphone battle.

Given all the negative newssurrounding Nokia this week, it’s good that investors may have something to be positive about.

Despite its weak presence here in the states and declining worldwide market share, the company still sold more phones than any other manufacturer in 2010.

I’m one of those few that own a Nokia phone!

These Nokia phones will run on a Windows operating system, this will give Microsoft opportunity to integrate its ad platform and search engine Bing.

This alliance may help boost Nokia’s credibility and put it back on the map.

But, Nokia has been off the ball for so long.

Can it catch up to popular companies like Research in Motion and Apple?

Our Bull, Quint Tatro, Founder & President at Tatro Capital, says Nokia is a value play. But, our Bear, Tero Kuittinen, Analyst at MKM Partners, maintains a “neutral” rating on the stock.

Let’s see what they have to say on the NokSoft deal.

Making Their Case: The Bear
Tero Kuittinen, Analyst at MKM Partners

Kuittinen has several concerns about the Nokia-Microsoft partnership

1. Microsoft benefits more than Nokia does.
2. Nokia is too dependent on Microsoft for its future.
3. There is no revenue guidance.
4. They didn't say how much they would cut costs.

Kuittinen believes that Nokia’s 4Q10 volume weakness is more alarming than markets realize, and places his Nokia price target at $8 Euros.

Making Their Case: The Bull
Quint Tatro, Founder & President at Tatro Capital

Tatro is a buyer of Nokia today. He says that although the market is saying Nokia made a wrong decision to choose Microsoft over the Google platform, Nokia will be able to significantly cut R&D in which they spend $8B a year is a plus.

1. Over-reaction on stock price. Presenting opportunity.
2. Suspect over next couple days will see the lows in this stock.
3. This is a VALUE PLAY.
4. From a technical perspective the stock is presenting excellent risk reward with a stop $1.00 below.

DISCLOSURES:
Kuittinen no conflict
Tatro personally owns the stock

Tune In:

Nokia is focus in today’s Stock Brawl at 340PM ET on “Closing Bell.”

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