NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by WallStSense.com

Back in August, Microsoft and Nokia announced a partnership that would see Microsoft Office applications ported onto Nokia smartphones, starting with the business-centric Nokia Eseries. At the time, the move seemed a good one for Nokia, given that it would help strengthen its competitive position within the North American marketplace,...

Nokia NOK this morning said it plans to cut 330 research and development jobs, about 2% of its global R&D staff. The cuts include up to 230 employees in Oulu, Finland, and about 100 in Copenhagen, Denmark. The company said it has over 17,000 R&D staff overall. NOK today is...

I'm betting real money on these five stocks.

Among the shares expected to see active trade in Friday's session are Dell, Nokia, and J.M. Smucker.

Nokia Eliminates 330 R&D Jobs In Finland, Denmark

Nortel Network Corp.’s (NT) said that the final auction for acquiring all of its Metro optical and Ethernet Networks division is on Nov 20, 2009. The deal is subject to a competitive bidding process. Nokia Siemens Networks, a joint venture between Nokia (NOK) and Siemens AG (SI) and a private equity firm One Equity Partners have jointly [...]

(NOK) Final Deadline for Nortel Bid

Nortel Network Corp.'s (NT) said that the final auction for acquiring all of its Metro optical and Ethernet Networks (MEN) division is on Nov 20, 2009. 

The deal is subject to a competitive bidding process. Nokia Siemens Networks, a joint venture between Nokia (NOK) and Siemens AG (SI) and a private equity firm One Equity Partners have jointly bid for Nortel’s optical networking and carrier Ethernet business challenging Ciena Corporation’s (CIEN) bid for the assets.
 
The telecommunication and network specialist Ciena offered a total of $521 million ($390 million in cash and 10 million in shares) to Nortel for acquiring substantially all of its MEN division.
 
We believe that the deal has strong growth potential for Ciena’s rapidly expanding metro Ethernet business and optical networking products. The Nortel deal would be the largest ever for Ciena and would also help it expand geographically.
 
While the Nortel acquisition will enable revenue growth, integration risk will be an issue. Moreover, the deal could pull Ciena into a net debt (debt exceeding cash) position. Other potential bidders include Ericsson (ERIC) and Infinera (INFN), who could take the deal away from Ciena.
 
Ciena reported better-than-expected results for the third quarter amid cautious consumer spending and weak demand. However, the more stable macroeconomic environment helped it deliver sequential growth, although year-over-year comparisons have been weak. 

Ciena is set to announce its fourth quarter results on Dec 10, 2009. Though market conditions have improved Ciena expects results to be lumpy as customers are still spending cautiously. As a result, the company guided revenue in the fourth quarter to be flat sequentially.
 
Non-GAAP operating expenses for the fourth quarter are expected to be in the low to mid $80.0 million range. The company expects higher prototype costs in the upcoming quarter. 

While pricing remains competitive, the company expects to sustain gross margins in the mid to high 40% range in the near term. Ciena’s restructuring initiatives to trim operating expenses appear positive for the company.
 
Although we do not expect Ciena to become profitable in the next two quarters, we do expect a recovery in 2010 due to favorable operational execution and growth in data traffic. However, uncertainty regarding the closure of the acquisition of Nortel’s assets further adds to the risk.
 
We therefore maintain our neutral rating on the stock.
Read the full analyst report on "NT"
Read the full analyst report on "NOK"
Read the full analyst report on "SI"
Read the full analyst report on "CIEN"
Read the full analyst report on "ERIC"
Read the full analyst report on "INFN"
Zacks Investment Research

BloggingStocks: Nokia (NOK - option chain) shares are rising today after the company announced that its Nokia N900 is now on sale in the United States. The phone retails for $649. If you think that the stock won't fall by too much in the coming months, then now ... Read more

For Immediate Release

Chicago, IL – November 17, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Dell Inc. (DELL), Apple Inc. (AAPL), Nokia (NOK), Research In Motion (RIMM) and American Dairy Inc. (ADY).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Monday’s Analyst Blog:

Dell’s Smartphone Strategy

Dell Inc. (DELL), one of the world’s leading computer manufacturer, has decided to start manufacturing its smartphone device. The company has zeroed in on Brazil as the first manufacturing destination and chosen Claro as its carrier partner in the region. Dell will also be manufacturing the device in China and partner with China Mobile in that region. The phone will be using the Google Android operating system.

Dell’s entry into the smartphone segment looks like a logical progression, as the company is already manufacturing and rolling out reasonably priced netbooks in the market. However, Dell is a late entrant into the market, unlike its peer Apple Inc. (AAPL), which has already grabbed a large share through smartphones such as iPhone 3G and iPhone 3GS.

As per the technology research firm Canalys, third quarter 2009 worldwide smartphone shipments grew 4% year on year, to 41.4 million units. As per the findings of the research firm, Nokia (NOK) maintained its worldwide smartphone leadership position with a 40% share of the market, up from its year-ago position, but down 5% from the previous quarter. Research In Motion (RIMM) was in second place, with a market share of 21%, almost flat sequentially. Apple’s market share was 18% in the third quarter, up from the 14% it held in the second quarter, with significant improvement in the iPhone 3GS supply across many countries. HTC retained the fourth position with a 5% share.

There is no reason to think that Dell phones would not gain popularity considering the company’s history of innovation, although the success rate could vary as competition is intense. We believe that even if Dell is able to capture a small share of the smartphone market, the additional growth opportunity would be substantial.

American Dairy Beats Expectations

American Dairy Inc. (ADY) reported third quarter results before the opening bell today. The company’s net income from continuing operations stood at $11.1 million, or 52 cents per share, from a loss of $22.1 million, or $1.19 per share in the year-ago quarter. Quarterly earnings also surpassed the Zacks Consensus Estimate for a profit of 31 cents per share.

American Dairy is a leading producer and distributor of premium infant formula, milk powder, and soybean, rice and walnut products in China. The company, which operates through its wholly owned subsidiary Feihe Dairy and other subsidiaries, has 200 milk collection stations, 2 dairy farms and 6 production facilities. The company has capacity to produce approximately 1,220 tons of milk powder per day and a distribution network of over 90,000 retail outlets across China.

The Beijing-based company recorded an impressive 94.1% year-over-year growth in quarterly sales to $72.1 million. The expansion was primarily driven by strong demand for American Dairy’s milk powder products (mainly infant formula products), which recorded a 151.7% growth in volumes to 6,561 tons and contributed 77.5% to total sales. Moreover, the robust revenue performance was also helped by company’s augmented distribution network and efforts to expand into new geographic areas in China.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

 

 

Zacks Investment Research

Dell Inc. (DELL), one of the world’s leading computer manufacturer, has decided to start manufacturing its smartphone device. The company has zeroed in on Brazil as the first manufacturing destination and chosen Claro as its carrier partner in the region. Dell will also be manufacturing the device in China and partner with China Mobile in [...]

(DELL) Dell’s Smartphone to Use Google’s Android

Two Veteran Wall Street Analysts discuss: (Val:) T, GPC, BARE; (Vern:) OTTR, NOK, WBC

Schaeffer's Andrea Kramer takes a look at unusual option activity on the Street

Schaeffer's analyst Morgan Searcy takes a look at news on the Street before the market open.

Schaeffer's analyst Morgan Searcy takes a look at news on the Street before the market open.

Schaeffer's analyst Colleen S. King takes a look at news on the Street before the market open.