Nokia stock has dropped over 10 percent but is it justified or just complete bs?
Nokia the Lumina 920 maker beat analyst estimates on there quarterly earnings, and for the first time in over a year posted a quarterly profit, yet the stock has dropped more than 10 percent. Why? Because the Nokia group's board of directors have decided not to issue a dividend, the first time in over 143 years. I honestly believe that this is something that they should have done 2 years ago, when they where in tough times. There is just absolutely no reason to pay out a dividend and put yourself in a bad financial position. The people who are selling right now are more short term oriented, and do not look at the big picture. With the dividend gone Nokia is saving at least 1 billion dollars, which could be re invested back into the company, which in return will benefit the shareholder overtime with the increase of the stock price. I believe that the dividend cut is a great idea, and can be re invested into advertising and r and d for there new line of smartphones set to take on apple. This sell off is overdone and I wouldn't be surprised if the stock price goes up dramatically in the coming days. Don't lose out on these cheap prices.
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