Sometimes no news is good news. Nokia Corporation (
) has issued guidance that profits for the first two quarters of
2012 will be worse than expected, driving the stock down nearly
[caption id="attachment_56287" align="alignright" width="220"
caption="Lumia 900 sales are not yet helping Nokia"]
In addition to
reports Nokia has also been embarrassed by a software bug in
its new Lumia 900. The new phone is supposed to be a
for the company, but the Easter Sunday launch did not go
well, not least because many stores are closed on Easter.
released a patch
for the software bug on April 13, three days ahead of schedule.
Even though Nokia has partnered with Microsoft (
), competition from high-end Samsung (
) phones and cheaper Chinese models have been devastating for the
stock. In the week following the launch of the Lumia 900, NOK fell
21.33%. Year to date, it is down 16.60%. For the last 52 weeks, it
has fallen 51.15%.
The professional investor community is backing away as fast as
it can. On April 12, Barclays downgraded the stock from Overweight
to Weight with a target price of $4. On April 13, Zacks Equity
Research downgraded Nokia Corporation to underperform.
The short float for Nokia Corporation is now 5.95%, a bearish
sign. The trend is definitely not the friend of the shareholders of
Nokia Corporation as the share price is double digits below the
20-day, 50-day and 200-day moving averages.