The Walt Disney Company (DIS), Nokia Corporation (ADR) (NOK): Should You Follow These Billionaire Investors’ Lead?

Apart from being an attractive takeover target, the company also seems to benefit from shifting its focus from developed markets towards the developing ones in Africa and Asia. At the very same time, it is also doing its best to tap somewhat saturated markets like the US. Nokia is currently on the verge of unveiling its latest smartphone, the Lumia 925, rumored to be equipped with a 41 MP camera. While camera stats sound impressive, investors would be better off not expecting too much from the Lumia 925 launch. Very limited carrier support, a not so popular Windows OS, and other aesthetics issues are likely to overshadow camera innovation.

Why invest in Nokia

With its cloudy outlook, it is difficult to make a long-term case for Nokia. However, it is a good stock for a medium-term speculative play. In the short-term, the stock may gain on many grounds, including takeover interest. The upcoming Lumia 925 launch in the U.S. is also likely to create some buzz.

Nokia is scheduled to announce its quarterly numbers on July 18. For the fourth quarter of FY2012, the company issued a positive forecast. Nokia is well positioned to report encouraging results in July as well and this may prove to be a good catalyst for a short-term spike. Overall, Nokia may not be recommended for a buy and hold strategy, but the stock is an interesting candidate for short-term play.

Bottom line

Both Disney and Nokia are veterans in their field, but their current status could not have been more different. While Disney is still going strong, Nokia seems to be struggling to stay afloat. However, both the stocks have garnered favor from hedge funds and certainly demand a good consideration from retail investors as well. Disney has good long-term potential and its near-term positive catalysts include good box office performance of its latest blockbuster movies and upcoming launch of Infinity.

Nokia, on the other hand, looks like a good short-term play as the stock may move higher on the back of the upcoming U.S. launch of the Lumia 925. The company also looks primed to report healthy quarterly numbers, which may push the stock price higher.

Raj S has no position in any stocks mentioned. The Motley Fool recommends Activision Blizzard and Walt Disney. The Motley Fool owns shares of Activision Blizzard and Walt Disney. Raj is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Should You Follow These Billionaire Investors’ Lead? originally appeared on Fool.com is written by Raj S.

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