Nokia Stock On Upswing As BlackBerry Rides the Storm

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Nokia Stock Price (above)

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BlackBerry Stock Price

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It looks like Nokia Corporation is making new Tablets and phones for 2014, according to what we read in the article below.  The stock is at near $8.00, closing at $7.94 (NYSE ADR ) while BlackBerry (BBRY on NASDAQ) has been coasting at $6.50, where it bottomed September, 2012. That BlackBerry has been at near $6.50 for ten days may well mean that it will only go up from here. Here’s the story on Nokia:

Nokia Corporation (ADR) (NYSE:NOK) is going to launch new handsets in 2014

“Boston, MA, 11/13/2013 (wallstreetpr) – The new handsets and tablets belonging to Nokia Corporation (ADR) (NYSE:NOK) are going to be much faster and unique as compared to the present models available in the market. After Nokia Lumia 1520, the management of the Nokia Corporation announced that they are going to launch Lumia 2020 and Lumia 1820. According to the information made available from Nokia Power House, the Nokia Lumia 1820 is going to be thin, metallic uni body and lytro style. This handset of Nokia Corporation is going to be launched at the MWC 2014. This phone is also imaged to be the next Nokia Corporation’s flagship device.

Much information has not been made available related to the Nokia Lumia 1820, but there are rumors that this phone is going to be the first Microsoft smart phone. Microsoft Corporation is going to unveil their first smart phone with the help of Lumia series and this handset is also rumored to be the first Nokia Corporations handset without having the Nokia brand name on it.

Talking about the Nokia Lumia 2020, it is going to set a new name for the 8 inch tablets available in the market. This tablet of Nokia Corporation would be having 800 snap dragons processor in it and would also be having 1080 resolution display. The Nokia Lumia 2020 would be faster as compared to the Lumia 2520. It will have higher PPI display and will be available with stylus support.

The arrival of the Nokia Lumia 1080 p is also expected from the company in the near future. Moreover, Nokia Corporation has launched their first tablet known as Lumia 2520.

Talking about the trading sessions of Nokia Corporation, the estimations made available by Market Watch, the stock of shares of Nokia Corporation has an average price target of $7.47 with a consensus holding of hold.”

Source: http://wallstreetpr.com/nokia-corporation-adr-nysenok-is-going-to-launch-new-handsets-in-2014-12453

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The golden parachute that Mr. Heins will receive if there is a change of control at BlackBerry

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There was little incentive for the executives at BlacKberry to have allowed OS 10 to succeed, I predicted this on this Blog in another post.  Just like Leo Apotheker, who destroyed the WebOS launch for HP, Heins has had little incentive to watch OS 10 succeed.  I am sure he has tried, but in the face of the steep challenges, is he/has he loosing/lost his resolve? Let’s look at a previous** analysis:

With RIM/Blackberry certainly taking on the appearance of a company painfully circling the white porcelain bowl, I thought that the time was right to take a look at how the company’s CEO, Thorsten Heins was compensated in 2013 and how he will benefit from a change in ownership, a scenario that is extremely likely with the announcement of the signing of a letter of intent with Prem Watsa’s Fairfax Financial Holdings.

Mr. Heins took over as President and CEO in January 2012 after serving as Chief Operating Officer of Product Engineering.  Interestingly, according to the 2013 Proxy Statement, Mr. Heins received 85.15 percent approval of the company’s shareholders with a significant 14.85 percent of shareholders withholding their votes, the only way that shareholders of Canadian companies can express dissatisfaction with a Board Member.
Let’s start by looking at Mr. Heins’ compensation (and that of the other Named Executive Officers or NEOs) for 2013 and the previous two years to put things into perspective:
 WHoBenefits1
Mr. Heins’ base salary was $1,000,974 and he also received long-term incentive awards (LTIP) totalling $6,190,833 in “recognition of his outstanding performance in Fiscal 2013.”. His LTIP consists of 381,679 shares at a grant price of $7.86 (restricted stock units) and 763,358 shares at a grant price of $7.86 (stock options) as shown on this chart:
WhoBenefits2
Including Mr. Heins’ non-equity annual incentive payment (AIP) of $1,717,295 (172 percent of his annual base salary), granted because he exceeded targets set by the Board , his total compensation package for fiscal 2013 was $9,065,077, down from $10,274,324 in fiscal 2012. Poor fellow indeed.  I do find all of this compensation information fascinating given that this is what happened to both net income and the value of the company’s handset sales over the past three years:
WHobenefits3
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Now, let’s get to the meat of the matter, the golden parachute that Mr. Heins will receive if there is a change of control of the company.  If Mr. Heins is terminated before or within 24 months following a change of control, he will receive:
1.) A lump sum equal to twice his annual base salary (currently $1,000,974).
2.) Contributions to continue all non-equity benefits including extended health and dental coverage for 24 months.
3.) An annual incentive amount equal to two times base salary multiplied by the current AIP target percentage.  Based on the current base salary AIP target of 1.5, the payment would be $4.5 million.
4.) All stock options and RSUs are immediately vested and can be exercised over the next year or the applicable time remaining on the grant agreement, whichever is shorter.
5.) If the termination date occurs before the Grant Date, the company will pay Mr. Heins $33.75 million.
Apparently, there are very strong personal reasons why the current executive team would be looking for a change in control since all of the NEOs have similar agreements.
Now, for comparison’s sake, let’s see how the company compensated the “sweaty masses” that were turfed in 2012.  The company’s “2012 Cost Optimization Program” that saw the layoffs of approximately 2000 employees or 10 percent of the total workforce cost the company $125 million on a pre-tax basis in fiscal 2012.  During 2013, the company made cash payments of $10 million to terminated employees and paid an additional $24 million toward facilities costs.
I realize that this isn’t directly related to the subject of this posting but, as a Blackberry owner that had my first phone crash within the first week that I owned it, I found this information interesting noting that the numbers are in millions of dollars:
 whobeneftits4b
Basically, since fiscal 2011, Blackberry has spent $1.816 billion settling warranty issues on their products.  While I don’t have comparable data from other smartphone manufacturers, that may explain some of the issues facing the company.
Lastly, if you want to see who got screwed in this whole debacle, this graph explains it all in a nutshell:
 WhoBenefits5
Shareholders saw an investment of $100 in March 2008 plummet to a value of $12.77 in March 2013 at the same time as total Named Executive Officer compensation rose from $15,544,628 to $25,044,614. Granted, from 2012 to 2013, NEO compensation dropped from just under $31.7 million to its current level, but that’s small compensation for the company’s much beleaguered shareholders.
Once the market sees a company as weak and vulnerable, perception becomes reality and there is very little chance of recovery.  Such is the case for RIM/Blackberry and this year’s rebranding did nothing to change the company’s plunging fortunes. Fortunately, for the company’s NEOs, they get paid handsomely either way.  Unfortunately, long-term shareholders do not.

** source:http://viableopposition.blogspot.ca/2013/09/blackberry-who-benefits-from-control.html

In Mid July 18% of BlackBerry Users Were In Indonesia

by Fernando Commodari, Ph.D.

English speaking Asia includes Indonesia, with over 238 million people, the world’s fourth most populous country. The nation’s capital of Jakarta has near 11 million people inhabiting the NW coast of Java. Indonesia shares a border with Malaysia. Other English speaking countries near to Indonesia are, Singapore, the Philippines and Australia.

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That 15 million of the 80 million users of BlackBerry devices to  July of 2013 were in Indonesia speaks volumes on the need for BlackBerry to have produced another OS 7 device using BBM on the BlackBerry BIS NOC (free BBM’ing where data plans are expensive sells!). The company needs to keep this user base and compete with cheap Asha devices from the former Nokia and Android devices from China and elsewhere. The region is key to BlackBerry surviving, especially with the erosion of the North American markets and loss of sales.  Until BlackBerry can correct things in North America, it needs to sustain growth or reach a steady-state equilibrium, in emerging markets. The regrowth of the market in North America  won’t happen over night. As South East Asia or Oceania gets cheaper data networks from carriers and as BBM migrates cross platform, with richer features on BlackBerry devices, while introducing iOS and Android users to the OS 10 UI, this region will be ripe for OS 10 devices in a few years. The vision for the BlackBerry Board needs to be broad and long term, while not getting caught up in the negative hype. Those of us who have been long on BlackBerry know that this ride is not for those who get car sick! There is a future for the newest cell phone OS, and BlackBerry can reap profits from the tech it is sowing today, if it stays the course, makes corrections where needed, and executes more effectively and with better market research and marketing.  I’m not sure that going private is the best course, certainly not for the share holders at the $9 per share that Fairfax is offering.  The negative media and analyst pressures serve a purpose to help in this correction, if painful.

 

Check out a related post:

BBRY One Year Later:

https://pfcsystems.wordpress.com/2013/10/02/bbry-one-year-later/

Get Our PFCSYSTEMS App for Free

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Some love to share, something free for you! After the delay in the cross platform BBM launch, and as BlackBerry is potentially going private (sold!), we have decided to offer our app for free! It’s available for all BlackBerry devices including legacy devices and the PlayBook. There’s no excuse not to get it and be on top of some great recipes, entertainment, travel, technology and stock-market news with original photography and restaurant reviews.  Get it here:

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Check out some screen shots here:

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Battery Best Bets!

Discharge Dev Alpha w Sim

As cell phone screens get larger and allow for more vivid colorful displays and become more prominent as all consuming devices, the battery requirements are critical. I have posted in the past on how to prime and improve your chemical cell that runs your handheld.  In the above graph, we see that my Dev Alpha A discharges to 0% charge in 13 hours, with good use, at a charge loss rate of about 8% per hour.

Recharging of the Battery; charging the Dev Alpha A with the PlayBook charger or with the charger that came with the device, proceeded at a rate of about 1.25% charged per minute. (Please, be safe and use the charger that came with the device!) This means that the battery should charge fully in 60 to 70 minutes:

charge Dev Alpha w Sim and Dev Alpha charger

charge Dev Alpha w Sim and PB charger

Discharging images with time stamp as Battery Lover goes from green (good charge) to orange (caution, consider charging) to red (must charge!):

IMG_00000026IMG_00000039IMG_00000038IMG_00000044IMG_00000087IMG_00000092IMG_00000106IMG_00000112 IMG_00000114

Here is an added bonus to help train your electrochemical cell:

Steps to Train your phone–Use Battery Lover as Battery Watch will drain the phone:
1)Let the phone discharge to near zero (10 to 15% of full charge) 2 times, then turn it off w the button on top–don’t swipe it on:
2)Connect, disconnect and reconnect the phone to the charger and make sure you see the not charging “red” symbol and the charging
“thunderbolt” symbols. Let the phone charge uninterrupted in off mode, you should see the flashing LED until it becomes a static “green”
It should take about an hour to reach full charge; but leaving it to charge beyond that time–over night is ok or for as long as you can.
3)After the initial two near zero discharges, charge the phone at near/below 30%. Test your phone, with The Battery Lover App, as needed.
4)If you find that the phone still discharges to zero in a short period; repeat the process from near zero charge, and next time let it discharge to
near/below 20 %. Test the phone again, as needed.
5)If you find that the phone still discharges to zero in a short period; repeat the process from near zero charge, and next time let it discharge to
near/below 10-15 %. Test the phone again, as needed.
6)Repeat 5 as needed with decreasing by 5% the level to discharge! Do so until your phone lasts unplugged for at least 8 hours!
Ideally, you should reach the sweet spot where you have 8 hours of use and are still between 30 to 50% charge.
At this point you most likely should charge the phone while in the “orange”.  Definitely charge it in the “red” at or below 20% charged!Other Cell Phone Battery Tips:

A Little Chemistry is Good:Training Your Li Battery to Power Your (Z10) Cell Phone With More Muscle

https://pfcsystems.wordpress.com/2013/03/06/a-little-chemistry-is-goodtraining-your-li-battery-to-power-your-z10-cell-phone-with-more-muscle/

Some Thoughts on Optimizing BlackBerry 10 (and Any) Cell Phone Battery Performance

https://pfcsystems.wordpress.com/2013/03/05/some-thoughts-on-optimizing-blackberry-10-cell-phone-battery-performance/

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