5 Stocks Under $5 With High Potential

1. Nokia Oyj (NYSE:NOK)

Number of Hedge Fund Holders: 24     

Share Price as of December 14: $4.99 

Nokia Oyj (NYSE:NOK) provides mobile, fixed, and cloud network solutions worldwide. On December 8, Nokia announced that it had launched the second EUR 300 million phase of the share buyback program that aims to return up to EUR 600 million of cash to its shareholders in tranches over a period of two years. 

On November 9, Deutsche Bank analyst Robert Sanders Nokia Oyj maintained a Buy rating on Nokia Oyj (NYSE:NOK) stock and lowered the price target on Nokia to EUR 5.50 from EUR 6.

Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Berkshire Hathaway Inc. (NYSE: BRK-A) with 20.3 million shares worth more than $86.7 million.  

In its Q3 2022 investor letter, Horos Asset Management, an asset management firm, highlighted a few stocks and Nokia Oyj (NYSE:NOK) was one of them. Here is what the fund said:

“Two clear examples of value traps that I remember with particular anger include Nokia (NYSE:NOK). Two companies suffered a rapid technological disruption in their business model and did not know or were not able to reinvent themselves in time. In the case of Nokia, we were dealing with the undisputed leader in cell phone sales. The company had an (apparently) ultra-solid balance sheet and enviable operating margins. However, the arrival of the smartphone brought a radical change to the industry, to which Nokia did not know how to adapt. In a short period, players such as Apple and Samsung wiped the Finnish giant off the map.”

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