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Nokia Surprise a Pleasant One to Hundreds of Funds

Fund shareowners that endured summer slide get some payback.

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On Thursday, Nokia (NOK) rewarded investors who stayed the course with either their shares of the globe's number-one wireless-phone maker, or with the mutual funds that have owned the stock since it lost more than a fourth of its value on July 27. Back then, the Finnish company said the roll out of new products might trim its margins a bit in the third quarter sending large and small investors for exits--even though Nokia Chief Executive Jorma Ollila said the company continued to gobble more market share from competitors.

Early Thursday, three months and a 46% decline in stock price later, Nokia made a strong case for its continued wireless-industry dominance. Ollila, in a surprise earnings announcement, said margins had narrowed from about 24% to an industry leading 19.5%, but pretax profit had increased 43%. Ollila promised a record fourth quarter too. The company's stock responded by rising nearly 26% Thursday.

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Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.