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11ish Investing

Why NOK Stock Has Low Risk but High Growth Potential


In this segment, we’re going to talk about why Nokia is an interesting investment opportunity. We’re going to look at its business, the pros and cons of investing into Nokia, and how it might work for your portfolio.


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Nokia is a Finnish technology company that offers a variety of technology services. Primarily known for it losing massive market share in the mobile device industry, when candy bar phones became smart super computers, Nokia is suddenly worth looking at again. This in my opinion is because they landed a new CEO and I really believe this can be the right catalyst to drive explosive growth.


1st reason is because the new boss has has 10 years of experience working at Nokia, 20 years of experience elsewhere, and now he’s back to what he calls his dream job. We asians call these folks sea turtles, where you are born into your homebase, go out to acquire skills and attributes, the you come back home and drive change with all the knowledge you’ve acquired. 


2nd reason is that it’s prime time for 5G to shine and a ton of new infrastructure needs to be deployed to make this work. I hate to say it but with so much anti-china sentiments going about, I think companies like Nokia are in a great position to get adopted. Nokia’s got the name, the history, and a CEO that’s no stranger to global networking. You can already see partnerships with google, vodafone, and more.


Nokia is also in my opinion a relatively safe bet because it owns a shit ton of patents. It owns literally 20 thousand patents, built on 130 Billion euros worth of technology. This includes royalty from 4G patents and a ton of patents in 5G technology, for future technology adoption as well. They are, in my opinion, well situated with growth plus safety net. 


The last pro I want to point out is that Nokia is now on Goldman and Morgan Stanley’s radar since May. This should give you great confidence in the average analyst’s price, demonstrating to you that there’s gain to be had in the coming quarters.


The biggest danger about investing in a stock like nokia is that the stock price is very low, plus it’s being messed with by the reddit community, so volatility might be scary for those more traditional investors. YTD, it’s fluctuated between 4 and 7 dollars. My advice is that if Nokia does get unjustly hyped, do not activate FOMO and buy on the high. It’s a great opportunity to take money OFF the table and buy on the inevitable dip. At current stock price though, I see solid growth potential.


Another risk I’d like to point out is that Nokia is just ONE of the 5G players out there with great potential. The safer bet is perhaps to invest into a telecom ETF, but there is really no sure fire way to predict which 5G focused business will hit the right notes first and get the explosive growth, both in stock and business, that we investors all look for. So I highly implore you to do your research on all 5G business. As far as value and potential gain vs risk goes, though, I think Nokia is probably the juiciest one and perhaps one that might be acquisition friendly as well. 


That’s all I have for you today. If you have any questions or concerns, please leave me a note. Thanks for being with me today, and I look forward to working with you next time

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