3 Great Gadget Stocks to Buy, and 3 to Sell

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3 Great Gadget Stocks to Buy, and 3 to Sell

Stock to Buy: Nokia

NokiaLogo e1287009011204 3 Great Gadget Stocks to Buy, and 3 to SellYes, that Nokia (NOK) — the one that just killed its 143-year-old dividend thanks to continued quarterly losses and whose own CEO likened it to a “burning platform” in the Arctic Ocean.

Call me crazy, but I see upside from here as Nokia returns to profitability in the years ahead. Sure, shares have been obliterated in the last decade from nearly $60 per share to under $4 currently, and yes, Nokia failed to turn a profit in 2011 and 2012. But after posting its first profitable quarter since 2011, the company is forecast to break even in 2013.

Looking forward, Nokia has pinned its hopes on a Microsoft (MSFT) alliance. While this partnership hasn’t resulted in instant success, there was hopeful news in the fact that Nokia sold more Lumia phones (5.6 million) in Q1 2013 than it did in Q4 2012 (4.4 million) thanks to the new Windows Phone OS.

After the recent selloff in Nokia, it makes sense to stake out a position in this hardware player to benefit from any Windows Phone success in the years ahead. It’s a no sure thing, with almost 300 million NOK shares held short and a lot of ifs to figure out. But it could be a profitable trade for investors willing to take on some extra risk.


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/3-great-gadget-stocks-to-buy-and-3-to-sell/.

©2014 InvestorPlace Media, LLC

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