EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.Analysis HP needs to build a position in tablets, because mobile devices are growing very fast. In the fourth quarter, Apple (AAPL) shipped 27 million units when tablets are counted. HP falls behind when mobile devices are included, because the company only shipped 15 million PCs. The partnership with Google creates a win for both companies. Google gets another hardware supplier to help grow the Android user base. HP reduces its reliance on Microsoft’s (MSFT) Windows system. This reduces inherent risks for investors, particularly when Windows 8 sales are not off to a strong start. It gives HP a better bargaining position with Microsoft. The impact of a slow start for Windows 8 sales, which will hurt HP in the short-term, is also reduced. It is not known if HP will be making any money from the tablet. Lost in the headlines was that a Windows-based tablet will be made. The prices for the tablet will range between $170 and $700. When a Microsoft-based tablet is compared to that of an Android-based one, a Microsoft solution appears to be of less value to the consumer. Business Section: Investing Ideas Three Winners Hewlett-Packard (HPQ) closed recently at $21 after breaking out from the $16-range. Measured from Kapitall’s tool with a Price of Profit (“POP”) of 6, HP is still inexpensive. NVIDIA Corp. (NVDA). The Tegra makers get a vote of confidence with the support of HP. Google (GOOG). Google gains another hardware maker for Android. The search-giant improves advertising profits when a channel for its search grows. …and a Loser Microsoft (MSFT) will face stiffer competition for its Surface tablet as another hardware maker offers Android. Microsoft is not gaining traction for Windows 8 sales as hoped, even when the operating system was priced at a significant discount for early adapters. There could still be hope, as hardware makers release Windows 8-based tablets, hybrids, and Ultrabooks. If the industry lowers the price for Ultrabooks, it could boost Windows sales.
Written by Chris Lau, KAPITALL contributor