Gemalto or Gelato?

With troubled beaster stock Gemalto – which apparently has not been taken over yet, there may be some good news which is not M&A related, and which many in the market have missed.

This is the way that as reported on Barron’s last week, Gemalto is involved as a possible player in the whole Apple phenomenon. Given the trials and tribulations the Dutch listed profits warnings company with a sideline in telecommunications has experienced in the recent past, good news is overdue.

However, it would appeal that after a whole flock of black swans, a traditionally coloured bird of this species may have finally arrived. According to Barron’s Gemalto could finally get lucky, after being very unlucky, in terms of getting Apple’s business for the iWatch eSIM. While such a deal could go to competitor Giesecke & Devrient, Gemalto’s market share advantage as far as the SIM market could sway fortune in its favour.

The big reward though, would be that the whole mobile phone industry switches from the SIM to the eSim via the iWatch, courtesy of the Apple effect. If this is the case the painful dive in Gemalto after profits warnings rather than M&A could prove to be a dip to buy into. Those burnt by Gemalto since the summer will certainly be hoping this is the case.