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By: Marvin Germo | May 26, 2019

Investors Supported Globe Telecom

Following the announcement of Globe Telecom, Inc. that it will not cut ties with Huawei Technologies Co. Ltd., investors started buying the shares of the firm last week. This made the company’s stocks 9th of the most actively traded stocks when it comes to value turnover. In fact, P898.4 million or equivalent to 429,740 shares were exchanged in the trading floor in a span of 5 days from May 20 to 24. Last Friday, the stock price closed at P2,088. It seems like the investors are treating the decision of the Globe to continue its partnership with Huawei in a positive manner. While Huawei’s stocks are sinking because of what happened, Globe continues to believe that this is the best for the upcoming plans of the firm.

Catch me in my live training events! (quick plug)

The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the trainings below.

Stock Smarts Manila —  June 15, 16, 22, 23, & 29, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar —  October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019

Reasons For Stock Movement

According to Globe, they saw 2 attributes to the movement of the stock last week. The first one is net foreign buying. To support this fact, P403.1 million was the net foreign buying last week, which is considered as 308.1% higher than the P98.8 million reported from the previous week. Also, the company’s reaffirming statement that its partnership with Huawei would not affect its business and future projects despite the current trade war between the US and China due to security reasons made a great impact to investors. Instead of reacting negatively, investors took this the other way around.

Globe and Huawei Partnership For Years

Globe disclosed that they have been in a great relationship with the tech giant for the past 10 years. The firm has a lot of information about the commotion and reported that they received pre-warnings from Huawei. The tech giant assured the firm that in the coming years, it will be independent of the US. To add, the capital expenditure of Globe this year is expected to reach P63 billion and a major part of it will be Huawei equipment. The firm also told that the pre-selling units are mostly Huawei so they will continue to support the tech giant. Together with its competitor PLDT, Inc., they announced that they are working on to address the Huawei concerns of the customers since Alphabet, Inc.’s Google is ending their ties with the Chinese tech company.

Google And Other Significant Vendors Back Away

It has also been reported that chipmaker including Broadcom, Intel, and Qualcomm will stop supplying Huawei. This is followed by Google backing away from supplying android services to the Chinese tech firm. This is expected to detriment the smartphone business of Huawei. In spite of this, Globe believes that Huawei is really an independent company, which is why it will continue not just the 5G network provision but as well as the selling of its mobile units. There is also an assurance from Google and Huawei that the handsets sold in the market won’t have a problem accessing google. However, Globe said that they have to see and decide whether to hand out the new Huawei models or not since these will no longer have access to Google.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
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