Posts Tagged ‘NOK’
World Debut: The Microsoft of the New Millennium
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| Written by Jared Levy, Editor, Option Strategies Weekly | |||||
| Tuesday, 16 August 2011 08:52 | |||||
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Google is now a hardware manufacturer. Never in the history of the company has it produced a product that consumers can actually hold in their hand. At $12.5 billion, the purchase of Motorola Mobility (MMI:NYSE) is a drop in Google’s big cash bucket. Motorola produces high-quality phones and has a clean reputation with most consumers in the smartphone industry (not like RIMM). This will be a major leap for Google and a catalyst to propel it higher in the coming years. MMI lacked a marketing catalyst and its brand was lost in the shuffle. That made it a prime candidate for Google to snap it up. That, and this: Motorola Mobility’s 17,000 patents. They are a sort of immunity to the lawsuits that happen so frequently in the smartphone industry. With the patents in its pocket, Google can focus on creating a “super phone” that integrates all the best features of its Android system with a sleek, functional, high-quality piece of hardware. Apple is the only other company that does this. But unlike Apple, Google will still license its operating system to other phone manufacturers. That means increased partnerships with demand for new apps and functions. This could hurt Apple. Apple doesn’t share well. It must have missed that lesson in kindergarten. The company lost a similar battle to Microsoft in the ’80s. Apple only offered its operating system on its own computers, while Bill Gates let anyone buy a copy. This sent Apple into a 12-year hole and made Microsoft one of the most profitable companies in history. It may not be that bad this time around, but Apple has a serious, more powerful contender in Read more |
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Sell Apple Before the July 19 Crash
Tuesday, 12 July 2011
The past few days have shown the first cracks in the market’s newly formed foundation. There are more to come.
Two weeks ago everyone got über-confident and started buying stocks like crazy.
The S&P 500 gained 7% in eight trading days… an amazing feat considering the current state of things. This brought the major averages back above their 50-day moving averages, a bullish sign for shorter-term investors.
The broad market has remained amazingly resilient in the face of poor economic data here in the U.S. as well as geo-political issues and economic catastrophes (like Greece) around the world.
Nonfarm payroll data came in at its worst level in almost two years. And consumer confidence here in the States has been moving steadily lower since February.
And yet, investors still have an appetite for risk. The pros call this the “risk on” trade. Investors are buying stocks ignoring the economic data.
When the risk is on, the stakes are high and companies must deliver results. Earnings season kicked off yesterday with Alcoa (AA:NYSE). If a company doesn’t deliver more than is expected or misses a forecast altogether, crashes (small and large) can occur, especially in skittish markets like the one we are in now. In stocks with elevated P/E ratios like Netflix (NFLX:NASDAQ) and LinkedIn (LNKD:NYSE), this is even more likely to happen.
But would you believe that Apple (AAPL:NASDAQ) could be on the chopping block, too?
Why I Am Scared of Apple
Let me first say that I am a huge fan of Apple. It set the bar for computers and electronics with the Lisa (pre-Macintosh) back in the ’80s. After falling out of favor in the ’90s, the company has reclaimed its role as demigod of the tech sector.
Even with this status, Apple could be dangerous, at least over the next week or two. The Apple iPhone is its top product and accounts for 54% of its share price (forward estimate). But the Apple iPhone is under Read more
Litmus Test for New ETFs — Should You Jump Into this Smart Phone Fund?
I was out to dinner at a swanky restaurant here in Dallas where you would think etiquette would prevent the use of electronic devices at the table. I was blown away when I looked around the room and saw that about 40% of the patrons were using their smart phones to exchange pictures, surf the web, check out the reviews of some of the wines on the menu, etc. These aren’t kids without manners; the smart phone is transcending generations as the bulk of the diners using the devices were over 50!
Smart phones at dinner
For years now, I have been preaching about the huge upside growth potential in the smart phone sector and have outlined several stocks such as Google (GOOG:NASDAQ), Apple (AAPL:NASDAQ), Research in Motion (RIMM:NASDAQ) and others to invest in. I still believe that the smart phone will become the proverbial “wallet” you carry around with you, keeping you in touch wherever you are and perhaps one day even replacing your identification and credit cards.
But is investing in a company like Apple, Google, Research Read more