Nokia rallies sharply, falls back after negative comments from MKM Partners
The stock hit a high today of $4.12 on very heavy volume, approaching over 3 times the daily average. The catalyst for this move higher was an item in the FT that suggested Huawei could be a suitor for the company. MKM Partners came out calling the move up a selling opportunity, suggesting that the EU would likely block any such attempt. Huawei has since come out to say it has no plans to acquire the company, according to Bloomberg. Whether the stock will remain higher on the presumption someone may step forward as a suitor remains to be seen. Support is at the low of the day at $3.67. Resistance is at $4. On a technical basis the shares have been putting in a bullish rounding bottom over the last several months. Purely on a technical basis the stock looks to have upside to $4.62.
All Yu said was that they would "consider" buying Nokia. He did not say there were any plans to do so. This clarification is not news.
Here's the actual report.
Huawei would consider buying Nokia to help it become the world’s leading smartphone maker, according to the head of the Chinese telecom group’s consumer business.
“We are considering these sorts of acquisitions; maybe the combination has some synergies but depends on the willingness of Nokia. We are open-minded,” said Richard Yu, chairman of Huawei’s consumer business group, ahead of a glitzy launch of its latest premium smartphone, the Ascend P6, in London.
You have got that right. The market is so crooked. When the insiders want out they sell blocks to brokers to dump on the herd of followers. It's all a scam so get in and get out as fast as you can. If the insiders are selling, don't buy. If the insiders buy, buy lower than what they paid for the shares and you are a little safer.