Nokia

Nokia is the world's biggest manufacturer of mobile phones. It also operates a substantial network and signalling business. In the mobile phone business, it led the market for years, with well designed and easy-to-use handsets, but were late to enter the lucrative smart phone market. However, the company has now gained significant traction in mid-range smart phones and business phones (selling almost as many globally as RIM, the maker of Blackberry). In addition, they believe they have developed a competitive high-end smart phone (to be launched later this year), helped by a much-improved operating system. Losses in the highly competitive networking business should not persist, due to cost cuts and a focus on growing the profitable managed services segment. The shares are attractively priced with an earnings yield of about 9% and a dividend yield of over 4%.