Boston, MA 11/25/2013 (wallstreetpr) – After shareholders gave their blessing to the sell of Nokia Corporation (ADR) (NYSE:NOK)’s devices and services unit to Microsoft, the hurdle that remains is about regulatory authorities’ approval. Looking at how the deal is structured, it doesn’t seem like there would be any issues to cause it not sail through regulatory assessment and all that pertains to such acquisitions. In this view, we can now talk about the new-look NOK as already having the deal figure of $7.5 billion.
The new Nokia Corporation (ADR) (NYSE:NOK) understands that without the handset division, there is need to bolster revenue from the remaining business units. Considering the cash that the company is receiving from its devices unit transaction with Microsoft, the company can use it in a number of ways to improve its performance. First, the Finnish company can now improve its research and development unit to boost its patent portfolio. For a long time, patent licensing has been a lucrative business in tech industry and Nokia Corporation (ADR) (NYSE:NOK) understands this all too well. The company has always surprised the market with its innovations considering its evolution from paper mill company to a tech giant. In the past few years when the company was struggling with declining fortunes in mobile handset business, NOK’s labs were underfunded leading to bottoming of innovative ideas which could help the company improve its patent line but now that has changed as there is a enough money to fund research projects.
Away from boosting its patent portfolio, Nokia Corporation (ADR) (NYSE:NOK) also has its vibrant Nokia Solutions Networks (NSN) which is now commanding global presence after recent recovery. In this situation, NOK is looking forward to big contracts in data infrastructure development from telecoms carriers. This unit is thus poised to rake in growing revenue in the coming quarters and the turnaround here can be seen in the company’s Q3 results which were nothing short of amazing for a company that had faced amount of financial challenges. Still, Nokia Corporation (ADR) (NYSE:NOK) has the financial power to go for acquisitions to add to its existing businesses for revenue growth.
In view of the above, I see the stock soaring to double digits in the near future.