Make Way For the Heroic Comeback! – Nokia Corporation (ADR) (NOK): Apple Inc. (AAPL), Google Inc (GOOG)

Incredible mapping device and the new license business

Nokia Corporation (ADR) (NYSE:NOK) easily beats Apple Inc. (NASDAQ:AAPL) with respect to location services, and has some advantages when compared to Google Inc (NASDAQ:GOOG)’s well-known maps. The recent Toyota Motor Corporation (ADR) (NYSE:TM) deal shows how good Nokia’s mapping business is. Last year, Nokia beat Google for Ford Motor Company (NYSE:F)‘s mapping contract, and this is becoming more of a trend now. Four out of five cars with pre-mounted navigation systems are driving with HERE-technologies.

Thus, the HERE technology must be excellent since the auto industry needs reliable partners in its competitive business. Nokia’s successful maps will help Microsoft push its Windows Phone platform. Since the HERE platform will be available on all WP8 devices, and considering Windows Phone 8’s popularity among programmers, this will further push not only the WP8 platform but also Nokia’s HERE business.

The management recently stated that, “the company will push to license its map data out to other developers and partner companies to raise money,” and that “revenue can be generated in variety of areas: licensing content, licensing platform, revenue per apps or through advertising.” The advantage of licensing fees is that, while the costs stay constant, Nokia earns money with every WP8 device sold.

Final takeaway

Fundamentally, Nokia Corporation (ADR) (NYSE:NOK) has several positives. Nokia is trading for 1.25 times book value, 35% of sales and has $3.56 in cash per share. EPS next year is expected to rise by 114%. The company scrapped its dividend this year, thus it can now accumulate the cash saved to alleviate liquidity-concerns. With newly revamped products, the success of the Nokia Siemens Network, partnership with Microsoft and the new license business, the 143 year old Finnish company is staging a full-steam-ahead plan to get back in the game. Give our beloved Nokia another chance and your portfolio will surely soar with the hero!

The article Make Way For the Heroic Comeback! originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.