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Short Interest in Nokia (NOK) Said to Hit Record High Ahead of Q3 Numbers

September 21, 2012 7:30 AM EDT Send to a Friend
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Well, more good news for Nokia (NYSE: NOK).

According to the Financial Times, short positions on Nokia are at all-time record levels, with as much as 90 percent of shares available for shorting being borrowed currently. The latest read from Markit has 16 percent of total shares out on loan, versus 9.5 percent at the start of September.

Other sources have about 246.25 million shares being held short, or about 6.6 percent of the 3.71 billion total shares outstanding. That's up 13 percent from the most recent reading of 217.98 million shares held short, though specific dates weren't given.

Mainly, traders are positioning for a dour printout for Nokia's upcoming quarterly report, it's last before the Espoo, Finland-based OEM starts selling its new line of Microsoft (Nasdaq: MSFT) Windows Phone 8 equipped smartphones. This means that the outlook isn't all bad for Nokia, just that many are trying to capture some downside from expectations of lagging handset sales.

As reported over the summer, Windows Phone 7 devices will not be upgradeable to the new version of Windows Phone, making current handsets all but obsolete. Even with substantial discounting, Nokia will be able to sell only so many of the device before consumers decide to wait a month or two for the next offering.

Mainly, investors in Nokia will focus on feature phone sales in emerging markets this quarter, a market when Nokia still holds a commanding position.

Ahead of the bell, Nokia is indicated for a lower open. The company is expected to release Q3 results in mid-October or thereabouts.




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