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Nokia Slides to 13-Year Low, Buy Now?

Considering shares of Nokia just slipped to 13-year lows, is it time to hold your nose and buy?

As you likely know Nokia was once the undisputed leader in cell phones, but in more recent times, the company has struggled to hold its ground as the iPhone, BlackBerry and others nibbled away at market share.

You may remember that back in February new Chief Executive Stephen Elop compared the company's situation to "standing on a burning platform. " Investors have had little patience for the stock ever since.

As bad as that sounds – it gets worse.

On Tuesday, the company warned that it expects net sales from its devices and services business in the second quarter to be "substantially below" its previous forecast, set in April, of between 6.1 billion euros ($8.7 billion) and 6.6 billion.

"Android is gaining strength. Apple is Apple, of course," said Elop on a conference call. Given the unexpected change in our outlook for the second quarter, Nokia believes it is no longer appropriate to provide annual targets for 2011.

Sounds pretty stinky. But the Fast traders always say the time to buy is when it hurts the most. So, is this the time to buy?

”At 7 times next year’s earnings you’d think it was value all day long,” says trader Tim Seymour. "That it's all priced in."

But he adds there are big problems. “When the CEO says 2011 and 2012 are transition years and that the operating margins are at breakeven, that’s no good. They’ve lost 75% of their market cap since the iPhone was introduced.

”There’s nothing to get excited about here, “ he concludes

Nonetheless, if you’re still intrigued, Mike Khouw suggests playing it with options to limit your downside risk.





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Trader disclosure: On May 31, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova owns (XOM); Terranova owns (KSS); Terranova owns (CVI); Terranova owns (OXY); Terranova owns (TM); Terranova owns (BJ); Terranova owns (DIS); Terranova owns (PFE); Terranova owns (V); Terranova owns (HPQ); Terranova owns (FLX); Terranova owns (JPM); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (VRTS); Terranova is short (DELL); Adami owns (AGU); Adami owns (C); Adami owns (INTC); Adami owns (GS); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Finerman and Finerman's Firm own (AAPL); Finerman's Firm owns (DIS); Finerman 's Firm owns (JPM) leaps and (JPM); Finerman owns (JPM); Finerman's Firm is short (IWM); Finerman's Firm is short (MDY); Finerman's Firm is short (SPY); Finerman's Firm owns S&P 500 Calls; Finerman's Firm owns S&P 500 Puts; Finerman's Firm owns Russell 2000 Puts

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