The big news this weekend was from Hewlett-Packard, a formerly dying PC and Printer maker who has seen its stock rally over 65% in the last year. I was spot on almost 2 years ago when $HPQ was spiraling lower when I said the stock would reverse course. It has reversed over 200% higher.
Who would have thought PC's and Printers would be in "such demand" these days?
Hewlett-Packard now plants to split the PC and Printer business from the Enterprise business. It doesn't matter how much it makes sense in the long run, right now it makes sense for all those executives holding $HPQ shares.
How does it make sense for investors and traders? If you were in the stock prior to this weekend, you missed out on a 7% spike higher. But there are other ways to profit off this split.
By the end of this year $HPQ is set to announce some business related 3D products, but nothing for the consumer just yet. Which is why I think acquiring a 3D printing company could be the better route to the consumer.
This morning $HPQ announced, along with some financial and split data that they are "... 'actively' looking at M&A throughout the year."
Could that mean $SSYS or $DDD? It could make sense. We could see both stocks bid up into years end on speculation. I have been buying $DDD calls on and off this year in anticipation of a spike to the upside.
It certainly pays to be in before any deal is announced.
$DDD $44 weekly calls $.70
$SSYS $119 weekly calls $1.60
$DDD NOV $47 calls $1.66
I currently own some $DDD calls and will profit should they rise in value.