Palm Inc. (NASDAQ:PALM), Huawei : What it will mean for Huawei?

By now, most sites was already highlighting about Huawei as a potential buyer for Palm Inc.

Many sites have also discussed the various advantage if Company XYZ acquires Palm.

That push me to think a little bit more about Huawei.

So far, most sites have talked about Huawei’s attempt to go into the mobile business and Palm will provide a great platform to build on.

However, if we are to take a step back and think. If you are the bankers, will this be the way you will try to sell to Huawei.

Couple of things we know about Huawei.

  1. They are strong in networking, telco areas and is doing very well.
  2. Without a doubt, Huawei is one of the great success stories of a tech company from China (apart from the likes of Baidu, Sohu etc).
  3. Yet, despite having revenue of more than US$21B, Huawei is not listed.  (source: Reuters )
  4. It’s rival, ZTE, is listed in the Hong Kong exchange.

What if Huawei use Palm to get itself listed? Though, I have to acknowledge that Huawei can get itself listed without going through this.

Surely, the investment bankers have to provide other value added services apart from peddling Palm?


Ichimoku Case Study : PALM Inc. (PALM)

Palm provide one of the best case study for Ichimoku as a trend trading tool.

If you have gotten the stock back in end 2008 or early 2009, you will have ride it to the top at around $17 from somewhere between $3 or $6.

Here’s one for the bearish trade. Do note that it is used for trend trading.


Palm Inc. (PALM) : Bullish Tekan sen – Kijun sen cross

Palm has a nice little rally last Friday; from 11.02 to around 12.50

The end of day chart shows a bullish Tenkan sen – Kijun sen cross just below the kumo.

This suggest that there may be resistance ahead (possibly at $12.60).

At the same time, this rally brings back memories of PALM at 1 year ago (when Pre was launched). Palm went from $6 to around $9 within a month.

What to look out for:

– more  distribution deals with carriers outside of US

– ‘killer-apps’ for webOS

– further out, webOS in other form factor (other forms of devices apart from cellphones)

– possible deals with media companies