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With Time, the New Nokia Should Reward Investors

Nokia (NOK) was once a dominant supplier of handsets and mobile phones. However, it missed on the smartphone revolution and sank in investors' eyes.

The Finnish company has been reinventing itself and offers technology and services for an IP connected world. Toward that goal, it combined with Alcatel-Lucent, an Agoura Hills, Calif.-based provider of cloud and networking solutions, in January. Nokia first quarter for 2016 was in line with guidance but the stock slipped after Nokia delivered an open-ended guidance.

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Nokia has been hovering at 52-week lows and some key sales numbers decreased in its most recent quarter. But it is not a doomed equity that you should shun altogether. The company's merger with Alcatel-Lucent will enable it to serve a wide range of customers in a space where demand is likely to continue growing at a fast pace The new entity simply needs time to reorient itself. Now would be a good time to buy some shares while the share price is hovering at around a 52-week low.

Nokia took a controlling interest in Alcatel-Lucent through successful public exchange offer. In public exchange offerings, companies exchange different kinds of securities, including common and preferred stocks.