By Andrew Montero
In the past week, Nokia lowered its forecast and expectations for the
coming quarters as well as full year. Since then, the stock has been steadily spiraling downward aggressively and losing even more value. Nokia put out guidance that sales at its devices and services division in the second quarter would fall below its forecast range of $8.9 billion because it is selling fewer handsets at lower prices than previous expectations. Analysts feel the miss could be by as much of a margin as 20%. The company totally discarded its guidance for the rest of the year. Nokia’s ADR shares, which closed Friday at $6.66, have shed 35% in value since the start of 2011 and are trading around their 13 year low, giving it a market capitalization of about $ 24 billion. The balance sheet for Nokia is in pretty good shape; however the company could quickly burn through cash during its current transitionary period.
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