Sales of structured notes tied to Nokia Corporation (ADR) (NYSE:NOK) are at the highest level they have been in 14 years according to data compiled by Bloomberg. Analysts say the company’s January earnings results helped push sales of the structured notes higher in January.
Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) shares soared after the company’s pre-announced earnings in January. Earlier this week, Nokia CEO Stephen Elop said he was confident of the company’s recovery, sending shares jumping again.
Today, new data indicates that banks are seeing sales of structured Nokia notes soar higher than they have been in 14 years or more.
Bloomberg reports that Nordea Bank AB (STO:NDA-SEK), SEB AB and ING Groep N.V. (NYSE:ING) sold $43.5 million structured notes tied to Nokia in January. That’s the highest number Bloomberg has recorded since 1999. Other banks like Citigroup Inc. (NYSE:C) and Commerzbank AG (PINK:CRZBY) (ETR:CBK) (FRA:CBK) issued 2,222 warrants and certificates tied to Nokia shares as well. According to Bloomberg, that’s 46 times more Nokia warrants and certificates than in the same time period a year ago.
Experts say Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) has always been a popular company when it comes to the trade of structured notes although January’s pre-earnings report helped push sales of them higher.
Elop is credited with Making Nokia profitable again after a round of cost cutting measures, job cuts and a suspended dividend payment. He’s the first non-Finnish leader the company has had in its almost 150-year history.
Nokia has indicated recently that its cash concerns are easing, although we are still waiting to see how sales of the company’s new flagship Lumia phones will pan out. The company’s next earnings report will be an important one in terms of trying to figure out if recovery is on the horizon.
Today shares of Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) are up approximately 1 percent at the New York Stock Exchange.