Dec 262013
 

Earlier this year I explained how to profit from the growing world of smartphone and tablet devices by using the mobile trinity strategy 😀 I didn’t have enough money at the time to complete the trinity and only had 2 out of 3 parts. Well I finally saved enough and earlier this week I bought 30 shares of Qualcomm Inc.

Qualcomm designs and manufactures chipsets and other technologies that go into mobile gadgets. With a market capitalization of ~$125 billion, it’s worth more than ARM, NVIDIA, and AMD combined. Qualcomm is about the size of Intel Corporation, which I also own shares in 🙂 The reason QCOM is so successful is because its technology is pretty much ubiquitous in all our cell phones. Its entire business is getting the licensing fees (like royalties) on pretty much every smart phone we use.

“We believe Qualcomm will pick up significant smartphone share on multiple platforms into 2Q/June. There have been numerous reports that Qualcomm could supply up to 70 percent of the Galaxy S4s, supplying to both US and European S4 models versus only US on the prior S3 platform.” ~Rakesh in a statement to ZDNet in April 2013

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Last week Apple announced that it has just partnered with China Mobile to bring the iPhone to the carrier’s 4G and 3G networks starting in January 17, 2014. This is a huge deal 🙂 T-Mobile, Verizon, and AT&T only have about 100 million to 130 million total subscribers each. But China Mobile, the largest mobile network operator in the world, has about 750 million subscribers! So even a small percentage of that market could be very lucrative for Apple 🙂

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Although iPhones use one of Apple’s own chipsets, they still use Qualcomm’s RF transceiver, baseband processor, and power management chips. So this new agreement Apple made is good for QCOM shareholders too 🙂 There is also speculation that Apple may use more of QCOM’s technology in future generations of their more affordable devices like the iPhone 5c, which is meant to target the medium price range of the smart phone market. This is because QCOM’s chips have the ability to integrate Bluetooth and Wi-Fi directly into the main chip which would save Apple money.

“Smart phone growth is projected to be 16% annually through the end of the decade. (Qualcomm’s) LTE chip has about 97% market share, so they are in good shape. Have gone from being the 8th or 9th chipset producer a few years ago and are now number 3. It tends not to get the credit that it should. Trading at about 15X next years earnings. Its growth is not only fairly robust, but is quite predictable.”  ~Gordon Reid , GoodReid Investment Counsel

QCOM allows us to invest in the growing cell phone market (mostly driven by Asia) without actually having to pick a leader 😀 Pretty good deal I think 😉 Now that my trinity is complete, I can just sit back and enjoy my profits as all 3 companies have incredible cash flow. How do you plan to take advantage of the fast growing mobile market in the future?

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I also bought 40 Comcast shares on the same day I bought QCOM. Both were purchased in my RRSP using TD Web Broker. If you live in the U.S. Motif is a great platform for trading stocks.  Comcast Corporation (CMCSK/CMCSA) is the largest mass media and communications company in the world by revenue. It owns NBC, Universal Studios Inc, and also provides cable and internet to tens of millions of Americans. It’s Comcastic 😆 Investing is so much fun because you get to learn how all sorts of businesses operate 🙂

Oct 202013
 

Last Friday Google Inc surprised the world with its latest financial numbers and their shares jumped by more than 13%, Heyo!(⌒▽⌒)The company’s market capitalization grew by about $40,000,000,000 in a single day 😀 Each share of Google is now over $1,000 for the first time ever. I believe Google is a terrific long term investment. Sure, it doesn’t pay a dividend, but it’s proved to be a great growth stock! Its shares doubled in value in the last 5 years eh 🙂 And most importantly Google provides a real service that people use, sometimes on a daily basis, in markets that are expanding 😉 (search, advertising, mobile devices, etc)

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13-10-googleserversGoogle has now surpassed Microsoft and Berkshire Hathaway in terms of company value. It is now the 3rd largest company in the U.S., behind only 2 other giants, Apple Inc and Exxon Mobil.  I’m glad I bought some Google shares earlier this year for $705 each.

As most of you know I like to share my investment strategies. So last month I blogged aboot why it’s important to own both Apple and Google shares because they are part of a very profitable mobile trinity 🙂 If any of you fabulous readers out there read that post and decided to take action right away then you would currently have a 9% gain in your Apple shares today, and 13% gain from Google. So you’re welcome 😀

But for those who didn’t have a chance to invest in the mobile and advertising space yet it’s not too late 🙂 Analysts continue to be optimistic about Google. At least a dozen brokerages raised their price targets on GOOG. The average target is now $1,068, and the median is at $1,100, from 38 different brokers.

The success of Android, which becomes more and more popular every day, is starting to really add up, and Google is collecting small tolls along the way. Google’s ownership of the Android ecosystem makes Google like the house, in Vegas terms. ~Stifel analyst Jordan Rohan

Also like I’ve mentioned in the past Qualcomm is another good stock to buy in the same industry, which I don’t yet own. But I’m planning to buy some in November to diversify. I believe smartphones and tablets are still going to see growing sales across the world.

Google’s brand is ubiquitous, and everyone who uses the internet including bloggers use Google’s services (with geographical exceptions.) Can you imagine a world without the Google search engine, Gmail, or Google maps?

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If the digital mobile world is becoming an ever increasing part of our lives, why not make it a part of our investments too? 😉 Let’s all profit from the inevitable growth of technology 🙂

Disclosure: I have 3 shares each of AAPL, and GOOG in my U.S. margin account

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Random Useless Fact: The plastic things on the end of shoelaces are called aglets.

Sep 122013
 

Apple recently revealed their new iPhone 5s and iPhone 5c. Some folks are saying the “s” stands for Same and the “c” stands for Cheap, 😆 But joking aside I think the mobile market will be one of the best places to make money in the future for those who invest today.

Step 1: Research

This is when you read media releases, statistics, analysis, and other information about mobile phones to gather facts and decide whether you want to invest in this space or not. Over 6.6 billion mobile phones will be in use by the end of 2017, according to CCS Insight. Most of them will likely be smartphones. Tablets are also expected to grow in sales over time. Mobile advertising will inevitably also benefit from this trend. The global ad market for mobile devices is estimated to be $11.4 billion this year, and is expected to be $24.6 billion in 2016, according to statista.com13-9-mobilegrowth

A common misconception is all the future mobile phone growth will come from emerging markets since developed countries have already reached market saturation. Fiddlesticks! A report by Google shows that only 56% of Canadians have a smart phone today, which is an amazing increase from 33% in 2012, but there is clearly more room for growth 🙂

Step 2: Take Action and Profit

Once you’ve decided to invest in the mobile market it’s time to pick a strategy. Personally I like the idea of holding three particular stocks: Apple, Google, and Qualcomm. And slowly increase my positions in them over time. Apple’s iPhones and iPads represent a large part of the market. Google is very deeply entrenched in this space as well. With the purchase of Motorola, and its close partnership with Samsung Google’s Android platform has become very popular, very quickly. Google will also benefit from the ad revenue growth. In 2011 iPhones were super popular and AAPL shareholders were very happy. This year however Android devices are the hip thing to buy so AAPL has gone down, and GOOG has outperformed brilliantly. Continue reading »