Market News Call

BlackBerry Ltd (NASDAQ:BBRY), Nokia Corporation (ADR) (NYSE:NOK) Are Hot Telecom Stocks

Maynard Um of Wells Fargo reflected on a Reuters report that said that the board of directors of BlackBerry Ltd(NASDAQ:BBRY) is not reluctant in taking the company private. Upon doing so, Um said that the company does not require going private to complete its transformation, even though it will need to find new ways to cut expenses.

Um rates the BlackBerry stock a Market Perform and holds a valuation range of $10.50 to $12. He has mentioned that operating expenses of the company are very high. BlackBerry requires focusing on becoming a company of smaller stature.

Um said that BlackBerry needs to be disciplined and prompt when it comes to righting its cost structure.

Um said that the stock is trading at 0.16 as a compound of enterprise value to straggling twelve-month sales. This implies that it is tough to discard the possibility of an acquisition. Um has also included the core value of the cash on the books.

In other news, Nokia Corporation (ADR)(NYSE:NOK) Solutions and Networks, NSN, has stated that it has signed seven contracts in India over the first half of 2013.

The contracts include Wi-Fi deals with two network providers of 2G and 3G agreements with three telecom partners.

The company has not disclosed the name of the partners and the amounts of the agreements.

VP and Head of India, NSN, Sandeep Girotra, said that the company is expanding its prominence within the present customer base, considering the present market position, which is quite challenging.

Girotra stated at a press conference that the industry is competitive and NSN is expanding its presence in the market through signing of seven deals in H1.

Girotra also said that the deployment of 3G network services may start off in a widespread manner in the next few years to come.

 



Tags: , , ,

Leave your comment here