Nokia (NOK) posted a lot of static with its quarterly report Thursday, leading investors to drop shares of the world's largest cellphone maker in the toilet. Nokia has some serious challenges in the fast-growing smartphone market, namely that everyone -- not just Apple (AAPL) and Research in Motion (RIMM) -- are jumping in at its expense.

However, with shares off 12 percent since earnings disappointed the Street, this could be a good entry point to make a longterm bet that Nokia will get its act together sooner rather than later.
Shares now fetch less than 13 times forward earnings, offering deep discounts to both the broader market and the competition. That makes the stock look like a strong relative bargain.

The share-price drop has also made the dividend yield quite attractive, seeing as it's now good for 3.4 percent. The dividend should also theoretically put some kind of floor under shares. If the stock continues to fall, the yield will become too rich for equity-income hunters to ignore, bolstering the share price.

Finally, add that yield into analysts' average price target, and you get an implied upside of more than 17 percent in the next 12 months or so.