Hamilton's E-Wave Analysis

NOK, Nokia

Once upon a time, not that long ago, Nortel Networks was worth 1/3 of the Toronto stock exchange. Nokia still is worth that much of the Helsinki exchange, even after dropping about 90%. It is Finland’s largest employer. The charts tell the story;

The stock has gone down in two, more or less equal legs. The bottom part of the second leg looks like a wedge even if it is not, strictly speaking, a diagonal (no overlap). The low should be fairly close to $4. This symmetry is almost identical to what we observed with RIM, even if the time frames are substantially different. With a capitalization of about $18 bln. this company is almost 3x the size of RIM. Furthermore is was only recently dethroned as the largest cellphone manufacturer by Apple. Perhaps the Fins will prove to be less indifferent towards Nokia than the Canadians towards RIM and it will finish ahead.