Could the recent rise have been partly due to a short squeeze, and has its impact as a catalyst for the share price now been exhausted?
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I suppose one could estimate that to some extent based on recent trading volumes, etc. Personally, I find it hard to believe that shorts play a major role.
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Nokia and the Difference Between Volume and Power
A competent analyst and a thorough article, but in my opinion, he missed the key point: the most important thing for Nokia right now is to gain new accounts among hyperscalers, and in that case, increasing sales volume can be sensible in the short term instead of maximizing price. Volume is already coming in, as AI and cloud orders were in the billion-euro range in Q1.
The author considered Nokia expensive. He also looked at five-year averages for Return on Invested Capital (ROIC 6.4%) and Return on Equity (ROE 7%) and considered both to be low. But these figures describe Nokiaâs history as a telecom provider, specifically as a âproblem childâ in mobile networks. They do not describe Nokia as a company that is now trend-wise growing its AI and cloud customer base. As the transformation continues, the key metrics will also improve.
A week of intensive study produced a high-quality but somewhat narrow analysis. Nevertheless, he ended up buying a small position for himself.
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Nokia is expensive right now. Thereâs no way around it.
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Expensive, fairly priced, or cheap? That depends on your perspective, and in their own way, all answers are currently correct.
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It looks like investors are fortunately of a different opinion, judging by the share price.
It has definitely been a clear mistake; theyâve made massive losses on that.
You canât really say that for sure without knowing the full positioning. Itâs possible they had a spread bet, Short Nokia vs. Long Ciena, for risk management purposes, and that would have been an excellent move even though Nokia has risen significantly.
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Of course, from a risk management perspective, you could put it that way. In absolute terms, however, it was still a poor investment on their part.
The combination of positions you mentioned doesnât sound particularly brilliant, but in principle, it is certainly a possible scenario.
and there certainly has been movement; who knows if itâs a very active position that has been scaling the cost basis (CB) up daily and is now trimming down during this minor correction
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