Still waiting on the "HUGE pension liabilities" to manifest themselves from pcstel cause alone the euro to usd doesn't do it for the conclusion of the article... so pardon me if I don't believe a nameless post on a board...
As of right now, Nokia's market value is $10.7 billion. In the latest quarterly report, Nokia had cash of $1.82 billion in addition to short term investments of $8.24 billion. The company's total account receivables sum up to $6.19 billion. In addition, the company's current inventory is worth $2.35 billion. The company's current total assets, according to its last SEC filing are worth $22.62 billion. If the company was to go bankrupt, everything would be up for a sale. This includes things like Nokia's plants, buildings and equipments, which are worth a total of $1.76 billion. If we add all the company's assets, cash and investments, we are looking at a total of $33 billion.
On the other hand, the company is not free of liabilities either. The company owes $4.9 billion and most of this amount (i.e., $3.8 billion) is long term debt. All Nokia's debt and liabilities total up to $22 billion. When company's total liabilities are subtracted from its assets, we have a balance of $11 billion.
We don't know how much Nokia's patent portfolio is worth today, but we can have some idea. For example, Google acquired Motorola for $12.5 billion mostly for its patents, and Nokia holds many more patents than Motorola did. If we assume that Nokia's patents are worth another $7 billion, which is a conservative estimate (i.e., $700,000 per patent), we are looking at about $2 per share for patents alone.
If all Nokia's assets were liquidated to pay off all its liabilities, the company would have $11 billion plus at least $7 billion of patents. This would translate into $4.86 per share. Of course, when a company goes bankrupt and tries to liquidate all its assets, it usually doesn't get full value for these assets unless the company is acquired by another company, in which case it may even get a premium. Even if Nokia goes bankrupt and liquidated all its assets with a discount of 30%, we are still looking at $3.40 per share. It's still much higher than today's share price of $2.88. |
