Nokia Corporation (NOK) Defies Skeptics as Alcatel Deal Clears Hurdle

Goldman Sachs added Nokia Corporation (ADR) (NYSE:NOK) to its "Conviction Buy" list. Explaining the decision, the brokerage cited the potential for the telecom firm's margins to rise amid industry consolidation, and a possibly "sizeable capital return" after its acquisition of Alcatel Lucent SA (ADR) (NYSE:ALU) closes -- which looks likely, after the U.S. Committee on Foreign Investment gave the deal a green light. NOK stock has been positively impacted, last seen up 1.8% at $6.62.

Goldman's confidence in the shares represents a break from the pessimistic norm. Of the 11 analysts tracking NOK, seven have doled out "hold" or worse opinions. This negativity is echoed at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). During the past 50 sessions, the stock has amassed a put/call volume ratio of 1.22 across that trio of exchanges -- just 4 percentage points shy of an annual peak.

A look at the charts demonstrates why bearish sentiment is so pronounced. Despite today's rally, Nokia Corporation (NYSE:NOK) has lost nearly 16% year-to-date. Nonetheless, the shares are on track to close above their 40-day moving average for the first time since early August.