Nokia (NOK)

Will its downturn continue? The Samsung deal with Verizon yesterday was huge and was a nail in the coffin of Nokia. He wishes they'd do a reverse split. The risk/reward is poor and is poised to sell further.

Nokia vs. Ericsson These companies have come into their own since the US government has pressured other government to not use Huawei for their 5G networks. Ericsson has done well in 5G. Nokia made an acquisition of Alcatel-Lucent that was difficult to pull off but has since gotten a lot better. Nokia will do a little better than Ericsson. Nokia has new management.

5G deployment is a key theme for him right now. NOK and CSCO are others in the space. He much prefers ERIC overall -- he thinks it could go to $12 per share.

He does not own AMT today. In 5G, he prefers CSCO and NOK.

A 5G producer? He has put his money on Ericsson, due to the their footprint and market share. Nokia has not been as consistent. This is a good time to enter he thinks and it is an area you can trade in.

People don’t hear much about Nokia for a reason. He has stayed away from companies that build legacy wireless infrastructure because of the transition to 5G. 5G wireless is more dependent on software, on the configuration of the local network nodes, and on the needs in the local area. 5G will displace landlines. Because development and deployment requires so much precision work, you have to get into metrology to do it. He prefers Keysight, the old HP, in this space. Keysight will provide the tools for the service providers, who will otherwise rely on generic hardware.

A very interesting company. Lost their phone business and had to rediscover themselves. Went into a deal with Lucent. They are moving along nicely, it is just a very slow process. Business can be very lumpy and volatile. There are a lot of better stocks to own.

The difficulty with this company is that it is kind of similar to the way Blackberry (BB-T) is now. When you stumble, it is really hard to recover when the competition is as fierce as it is. He would rather go with something else, such as Apple (AAPL-Q).