Thanks for all your posts and shared info. I have been buying more today: 3.93-3.95 and now hold a total of 27k shares. I agree that this is at the least a near floor and upside potential is seemingly greater than downside. That usually is a good time to buy. I also like the 7-8% discount based on current share prices. While there is always the usual concern over M&A stuff, this looks like the synergies of both companies will allow it to compete very favorably going forward.

 

The more I go about the positives on this merger the more I feel convinced this will lead to very decent gains.   The merger makes perfect sense because of these three simple things: 1- NOK brings the balance sheet2- ALU brings the technology (i.e. broader portfolio)3- ALU brings extended Geographic foot print (specially North America and China)  Combined, the new entity will be first in Wireless and remain a strong second in Switching and Wireless.  I too read that in China, ALU is actually already selling SDN technology (China Telecom if memeory Serves me right), great to see it already has a small foothold in such a huge market. Currently, NOK sports a Price to Sales multiple of 2, JNPR is at 2, CSCO at 3, Ericson at 1.59.  I would expect that NOK's P/S would be pulled down somewhat, but within the next 3 years, it should move back to a P/S ratio of 2.  The synergies are so favorable that the company once fully integrated should grow market share in both the Wireless and Switching and routing and also in the SDN market as it becomes a bigger slice of overall Networking market. At a multiple of 2, the company could eventually fetch a price per share of ~$15, at 1.5 it would be at ~$11 (my current PT).  I also have decided that my hold time for this investment will likely be 3+ years

BTW, as I posted, I bought 4K more just under 4 yesterday.  Given that the markets "may" have a correction I will hold off on buying more  I think the NOK-ALU ship would trend down with the markets, so I would love to get more at better prices.  I am not one bit concerned if it trended down given a negative macro level, I would consider it a gift So, I still think the near term will be rocky and bumpy, but think it is a great opportunity.