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Wednesday,
June 10, 2009
(Cont'd from
above)...
Jim (cont'd):
I need you to think
about these cycles
on down days like
today, because these
selloffs give you a
chance to... buy,
buy, buy... and get
into one of the
greatest stories
ever told at a
discounted price!
Over and over again,
I hear the
conventional wisdom
about saturation...
how there are too
many of these
devices already.
And, as they flood
the market... this
whole move will be
repealed, be over...
because there's just
not enough room for
these smartphones...
But the people who
parrot that line are
the ones who, to
date, have kept you
out of the
incredible move
higher. Ever single
time, it has been a
huge mistake to sell
or be on the
sidelines about the
stocks that I am
about to give you...
And yet, we keep
hearing arguments to
do just that...
Sidelines... sell,
sell, sell... Nobody
who's talking about
saturation
understands... they
just don't get it.
Maybe they didn't
trade in the 80s or
90s like I did...
What don't they
get?...
They do not get that
there is plenty more
for the Palm Pre,
which is fabulous...
or the new
Blackberries, which
are fantastic... And
there's plenty of
room for the new
iPhones, which are
downright
incredible!...
You cannot think of
these products as
toys or fashion
accessories... You
will never grasp the
extent of this move
if you look at them
like luxuries! The
demand for these
products is so
strong, because they
have become
necessities!...
These smartphones
are becoming every
bit as necessary as
say, our ability to
read the papers, or
order clothes or
books or food on the
internet... or watch
TV on cable rather
than rabbit ears...
As surely as we text
instead of call...
and take pictures
with our phones and
our cameras... as
surely as we watch
TV on our
computers... These
phones are darned
intelligent...
We are buying the
phones from
Palm, Inc. (PALM)...
and from
Research
In Motion (RIMM)...
and
Apple (AAPL)!...
each of which makes
the little device
that does
everything... the
gadget that makes
all other gadgets
irrelevant...
because it is your
phone, your camera,
your email, your
email access, your
web browser... and a
thousand other
things you can say,
make an iPhone do
with all the
applications that
have been designed
for it...
You know what this
is?... This is the
10x Tsunami that
Andy Grove, the
former CEO of
Intel (INTC),
talked about in his
terrific book, Only
The Paranoid
Survive... It's a
revolutionary,
technological leap
that's taking
everybody by
surprise, and let's
us make things that
are 10 times better
or cheaper or
faster... That's the
category these
smartphones fall
into... and it's why
people will keep
buying them, long
after you would
expect them to
stop... And Wall
Street's not getting
this...
And, when you get a
product cycle this
strong, it spreads
and it lifts all
kinds of ancillary
plays... everything
that goes into one
of these phones, or
supports the
network... a lot of
them could go
higher...
Now, I'm talking
about
Starent Networks, Corp. (STAR)...
I'm talking about
Skyworks Solutions Inc. (SWKS)...
About
RF Micro Devices Inc. (RFMD)...
About
Broadcom Corp. (BRCM)...
Analog Devices Inc.
(ADI)
and
SanDisk Corp. (SNDK)...
Marvell Technology Group Ltd.
(MRVL)...
ADC Telecommunications Inc.
(ADCT)...
and
Texas Instruments (TXN)...
Perhaps the best way
to play this new
product cycle is
QualComm Inc. (QCOM*)...
the largest position
in
my charitable trust,
ActionAlertsPlus.com...
which created the
technology that
makes so much of
what we're talking
about possible...
By the way, QualComm
gives you a
two-fer... It's also
the brains behind
the all-new Kindle,
which America is
going Lady GaGa
over... a total love
game!
Infrastructure is
being built around
the globe... Thank
you, communist
China!... To support
this trend, we're
seeing a monster
network push from
AT&T (T)
for the iPhone...
from S for the Pre
from
Palm (PALM)...
And, yes, from
Verizon
(VZ),
to support the
Blackberry... which
means these phone
companies have their
mind on their money,
and they're not
going away... to
misquote T.I.
partner in crime,
Rihanna...
The stocks, on the
other hand, are a
different story.
Each is
complicated...
I thought you should
own
Apple (AAPL),
right into Monday,
and then sell half
your position... It
has been going down
ever since...
Goldman Sachs raised
estimates for
Research
In Motion (RIMM)
today, but Rick
Bensignor told us to
take some profits in
it, and he's up more
than 30 points since
he made the call
here...
PALM?... I thought
you should buy it
ahead of the product
launch and then sell
it... Not bad, not
great...
I think we're having
a small correction
in tech, and you
need to ease back
in, picking some up
on your way down,
rebuilding your
Apple position, if
you sold it because
of me... and getting
into some Palm at
$10...
I am more
comfortable telling
you RIMM is buy
under $75.00... I
don't know if we'll
get there. Maybe the
best way to look at
it is to do what I
thought it was...
well, it was a great
strategy with
Apple... keep half a
position on, and buy
back the rest on
weakness, using an
8% decline to pick
up your next quarter
of a position...
then another 8%, if
we get it, to pick
up the rest... The
worst that
happens... The stock
goes up with only
half of your
position, and you
make some money! I
call it a
high-quality
problem...
Here's the bottom
line!...
▼ ▼
▼ ▼
▼
 The Bottom Line!:
A huge new new
product cycle, based
on smartphones and
mobile internet has
begun in tech, and
it will not be
denied! I wish these
stocks would go down
every day, so I
could buy more of
them on the cheap,
and then make a
killing!... as the
stocks spring
back... because the
fundamentals are
with you. This is a
truly secular growth
story, led by
Apple (AAPL),
Research
In Motion (RIMM)
and
Palm, Inc. (PALM)...
and followed by
everything that goes
into them, and makes
the technology, that
keeps their wireless
networks running.
And I believe it
will always be able
to power higher,
until the cycle at
last exhausts
itself, which won't
be for a very, very
long time!
[verbatim recap]
[end of segment]
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