Micah Dickson's Instablog I am a passionate investor who is constantly trying to grow and expand my knowledge. I believe the financial markets are, not only fascinating, but vital to our economy and to the world. I have worked in the financial sector since 2005. Micah Dickson http://seekingalpha.com/author/micah-dickson/instablog How the Apple(AAPL) and Verizon(VZ) Deal is Bigger Than The iPhone http://seekingalpha.com/instablog/568752-micah-dickson/134518-how-the-apple-aapl-and-verizon-vz-deal-is-bigger-than-the-iphone?source=feed 134518 This past month the news of the iPhone coming to Verizon network had everyone buzzing about how much money this would mean for Apple(AAPL) and for Verizon(VZ) and why AT&T(ATT) should be worried. I came away with a different outlook on this story, Verizon is going to run into the same problem AT&T and every other cell phone carrier is running into. With the smart-phone revolution still in its infancy devices are starting to hit the market that demand more capacity from the antenna and the towers that provide their wireless service. The smartphone revolution is just beginning but growing rapidly. The year over year growth in Q4 was 17.9% and more growth is well on the way. (www.semiconductor-today.com/)

This has become a huge concern for carriers and especially with Android taking up most of the bandwidth.(Mobile Magazine) Combine this with the rise of the new tablets to compete with the iPad and the prepaid smart phone services, and you are going to have a bandwidth “crisis”. Now we know when there is a lack of supply and a huge increase in demand, you have an increase in prices. Higher prices mean better margins and better margins mean more profits. Easy equation, right?

But what companies are going to benefit from this huge increase in demand for more capacity? The companies that make antenna and build cell phone towers of course. This includes companies that are able to speed up the existing bandwidth to handle the already large demand and can help cell phone carriers deal with increases in demand.

The companies that, I believe, will see huge upsides to this revolution are the companies that provide broadband and the components that provide quicker surfing of the mobile Internet. A lot of these companies produce semiconductors. The following companies increase the speed at which information is transmitted in the mobile web.

One company is Skyworks Inc.(SWKS) who is seeing outstanding growth and I believe will continue this growth. Is a major semiconductor company. They are seeing great growth and demand for their products.


Another company poised to continue to see growth from the revolution is Cienna(CIEN). They are the third largest network equipment provider and are poised to grow even more as the mobile Internet becomes common place.


Cisco(CSCO) is another huge player in the space. They provide networking and will be essential for the ever growing “cloud computing” which is so essential for the new mobile Internet so that devices do have to use so much memory to access data and programs.


Juniper Networks Inc.(JNPR) is another major player and just released earnings that shows amazing growth especially in their mobile Internet and cloud computing businesses.


The expansion of smart phones and tablets is going to be huge for these companies. The exponential growth of not just these mobile web devices but the ever expanding ability of these devices are going to allow room for growth for years. More and more customers are going to be downloading apps and surfing the mobile Internet on their phones. This even includes those that are just going to check the score of the game or to check their balances. We are already seeing that people are starting to use their smart phones more than their computers to check email.(www.informationweek.com/blog/main/archiv...;jsessionid=3VGK4CISUORVTQE1GHOSKH4ATMY32JVN)

There is also the increase in apps that are coming in 2011 that will utilize a users location or will allow the user to make purchases from their phone. This will mean that those cell phone users are going to have to be connected at all times. That is going to require even more bandwidth. And to stay competitive, cell phone carriers must give their customers the speed they want on their cell phones in order to stay competitive. If they do not their reputation is going to be murdered.

The story of mobile Internet will seem, on its face, to be the story of Apple(AAPL), Google(GOOG), Research in Motion(RIMM), AT&T(ATT), and Verizon(VZ) but their story will be about winners and losers. The story of the mobile internet will really be how companies such as Skyworks(SWKS), Cienna(CIEN), Cisco(CSCO), Juniper Networks Inc.(JNPR) and other small companies became juggernauts that the future cannot function without.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
]]> Mon, 31 Jan 2011 15:58:31 -0500 This past month the news of the iPhone coming to Verizon network had everyone buzzing about how much money this would mean for Apple(AAPL) and for Verizon(VZ) and why AT&T(ATT) should be worried. I came away with a different outlook on this story, Verizon is going to run into the same problem AT&T and every other cell phone carrier is running into. With the smart-phone revolution still in its infancy devices are starting to hit the market that demand more capacity from the antenna and the towers that provide their wireless service. The smartphone revolution is just beginning but growing rapidly. The year over year growth in Q4 was 17.9% and more growth is well on the way. (www.semiconductor-today.com/)

This has become a huge concern for carriers and especially with Android taking up most of the bandwidth.(Mobile Magazine) Combine this with the rise of the new tablets to compete with the iPad and the prepaid smart phone services, and you are going to have a bandwidth “crisis”. Now we know when there is a lack of supply and a huge increase in demand, you have an increase in prices. Higher prices mean better margins and better margins mean more profits. Easy equation, right?

But what companies are going to benefit from this huge increase in demand for more capacity? The companies that make antenna and build cell phone towers of course. This includes companies that are able to speed up the existing bandwidth to handle the already large demand and can help cell phone carriers deal with increases in demand.

The companies that, I believe, will see huge upsides to this revolution are the companies that provide broadband and the components that provide quicker surfing of the mobile Internet. A lot of these companies produce semiconductors. The following companies increase the speed at which information is transmitted in the mobile web.

One company is Skyworks Inc.(SWKS) who is seeing outstanding growth and I believe will continue this growth. Is a major semiconductor company. They are seeing great growth and demand for their products.


Another company poised to continue to see growth from the revolution is Cienna(CIEN). They are the third largest network equipment provider and are poised to grow even more as the mobile Internet becomes common place.


Cisco(CSCO) is another huge player in the space. They provide networking and will be essential for the ever growing “cloud computing” which is so essential for the new mobile Internet so that devices do have to use so much memory to access data and programs.


Juniper Networks Inc.(JNPR) is another major player and just released earnings that shows amazing growth especially in their mobile Internet and cloud computing businesses.


The expansion of smart phones and tablets is going to be huge for these companies. The exponential growth of not just these mobile web devices but the ever expanding ability of these devices are going to allow room for growth for years. More and more customers are going to be downloading apps and surfing the mobile Internet on their phones. This even includes those that are just going to check the score of the game or to check their balances. We are already seeing that people are starting to use their smart phones more than their computers to check email.(www.informationweek.com/blog/main/archiv...;jsessionid=3VGK4CISUORVTQE1GHOSKH4ATMY32JVN)

There is also the increase in apps that are coming in 2011 that will utilize a users location or will allow the user to make purchases from their phone. This will mean that those cell phone users are going to have to be connected at all times. That is going to require even more bandwidth. And to stay competitive, cell phone carriers must give their customers the speed they want on their cell phones in order to stay competitive. If they do not their reputation is going to be murdered.

The story of mobile Internet will seem, on its face, to be the story of Apple(AAPL), Google(GOOG), Research in Motion(RIMM), AT&T(ATT), and Verizon(VZ) but their story will be about winners and losers. The story of the mobile internet will really be how companies such as Skyworks(SWKS), Cienna(CIEN), Cisco(CSCO), Juniper Networks Inc.(JNPR) and other small companies became juggernauts that the future cannot function without.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
]]> aapl goog att vz swks cien csco jnpr Telecommunications Semiconductors Why On Earth Are We Talking About The GM IPO?! http://seekingalpha.com/instablog/568752-micah-dickson/111361-why-on-earth-are-we-talking-about-the-gm-ipo?source=feed 111361
On the other hand we have Ford(F). This company refused to take government money and has been doing amazing.


I'm a conservative investor and the fact that they are focused like a laser beam on debt is music to my ears. Another thing Ford has done is make cars people love. I have yet to hear a complaint from Ford owners. I'm just really impressed with this company. Ford has positioned itself to be the leader of the American Auto Industry in the future.

So in my opinion skip the GM and buy Ford(F).  I'm confident you'll use less advil and pepto.


Disclosure: No positon]]> Mon, 15 Nov 2010 13:17:51 -0500
On the other hand we have Ford(F). This company refused to take government money and has been doing amazing.


I'm a conservative investor and the fact that they are focused like a laser beam on debt is music to my ears. Another thing Ford has done is make cars people love. I have yet to hear a complaint from Ford owners. I'm just really impressed with this company. Ford has positioned itself to be the leader of the American Auto Industry in the future.

So in my opinion skip the GM and buy Ford(F).  I'm confident you'll use less advil and pepto.


Disclosure: No positon]]> gm f Auto Ford Presses on the Gas to More Profit http://seekingalpha.com/instablog/568752-micah-dickson/104459-ford-presses-on-the-gas-to-more-profit?source=feed 104459 Cramer: Ford to Report Best Quarter in Its History
Published: Monday, 25 Oct 2010 | 3:19 PM ET
Web Editor, Mad Money

Cramer is right on this one I believe. Ford(F) has been making all the right moves. Quality is up. Customer satisfaction is up. Ford's stock is up. Everyone I've talked to who has bought a new Ford vehicle loves it. I won't lie, the new Taurus looks amazing.

This is in contrast to Chrystler who is looking to be running into so serious troubles. I heard on the radio(yes people still listen to it) that Chrystler looks like it has some great cars coming but since it takes so long to get new car lines to market, it may be awhile before they see any real profits. Yikes.

Moral of the story: Ford's got it right. Amazing what not taking governement money can do for you.


Disclosure: No Positions]]> Mon, 25 Oct 2010 17:27:05 -0400 Cramer: Ford to Report Best Quarter in Its History
Published: Monday, 25 Oct 2010 | 3:19 PM ET
Web Editor, Mad Money

Cramer is right on this one I believe. Ford(F) has been making all the right moves. Quality is up. Customer satisfaction is up. Ford's stock is up. Everyone I've talked to who has bought a new Ford vehicle loves it. I won't lie, the new Taurus looks amazing.

This is in contrast to Chrystler who is looking to be running into so serious troubles. I heard on the radio(yes people still listen to it) that Chrystler looks like it has some great cars coming but since it takes so long to get new car lines to market, it may be awhile before they see any real profits. Yikes.

Moral of the story: Ford's got it right. Amazing what not taking governement money can do for you.


Disclosure: No Positions]]> f Auto Why That Econ 101 Class Could Make You Some Serious Dough http://seekingalpha.com/instablog/568752-micah-dickson/103815-why-that-econ-101-class-could-make-you-some-serious-dough?source=feed 103815 Baidu Rides Waves Of China Growth To Big Profits Agustino Fontevecchia, 10.21.10, 07:45 PM EDT China's leading Web search company, reports better-than-expected results after the closing bell Thursday.
If you remember anything from Econ 101 than this article should be no suprise to anyone who has followed Baidu(BIDU) and Google(GOOG) when it comes to the China market.

Google's decision to refuse to censor it's search engine back in March and to leave the China market left that market to be dominated by its rival Baidu. With the growth of the internet in China and the demand for search engines, this was a very profitable market. When Google left that market, the only one left to meet the demand was Baidu.

Baidu's(BIDU) Chart:

Baidu should have no problem staying profitable with its now sole domination of the market. Also their growth should continue as there is no real competition to worry about. They are basically a monopoly in the Chinese market. It really is a no brainer to invest in Baidu. There really is nothing to slow its growth besides a slowing in the Chinese economy.

So what lessons can we learn from this? One huge fundamental stock signal that can make us a lot of money is when a company is able to eliminate or marginal their competition then it is a clear buy signal in a growing, profitable market. Another example of this is Netflix(NFLX) and what happened with Blockbuster. When Blockbuster said it must adapt or die Netflix was looking at a market it would soon dominate over its biggest competition. Now granted Redbox was coming into the market but did not have nearly as much market share as Netflix. If you bought Netflix around the time of Blockbusters comments, than you have seen a nice chunk of change coming your way.

Business is a war game. To the victors go the profits. When you can spot winners and get on their side, than you can Get Money.





Disclosure: No positions]]> Fri, 22 Oct 2010 16:50:19 -0400 Baidu Rides Waves Of China Growth To Big Profits Agustino Fontevecchia, 10.21.10, 07:45 PM EDT China's leading Web search company, reports better-than-expected results after the closing bell Thursday.
If you remember anything from Econ 101 than this article should be no suprise to anyone who has followed Baidu(BIDU) and Google(GOOG) when it comes to the China market.

Google's decision to refuse to censor it's search engine back in March and to leave the China market left that market to be dominated by its rival Baidu. With the growth of the internet in China and the demand for search engines, this was a very profitable market. When Google left that market, the only one left to meet the demand was Baidu.

Baidu's(BIDU) Chart:

Baidu should have no problem staying profitable with its now sole domination of the market. Also their growth should continue as there is no real competition to worry about. They are basically a monopoly in the Chinese market. It really is a no brainer to invest in Baidu. There really is nothing to slow its growth besides a slowing in the Chinese economy.

So what lessons can we learn from this? One huge fundamental stock signal that can make us a lot of money is when a company is able to eliminate or marginal their competition then it is a clear buy signal in a growing, profitable market. Another example of this is Netflix(NFLX) and what happened with Blockbuster. When Blockbuster said it must adapt or die Netflix was looking at a market it would soon dominate over its biggest competition. Now granted Redbox was coming into the market but did not have nearly as much market share as Netflix. If you bought Netflix around the time of Blockbusters comments, than you have seen a nice chunk of change coming your way.

Business is a war game. To the victors go the profits. When you can spot winners and get on their side, than you can Get Money.





Disclosure: No positions]]> bidu goog nflx What Good Ole Fashioned Southern Hospitality Can Teach Us About Picking a Stock http://seekingalpha.com/instablog/568752-micah-dickson/103556-what-good-ole-fashioned-southern-hospitality-can-teach-us-about-picking-a-stock?source=feed 103556 Chipotle Mexican Grill Surges on 3Q Profit, Higher Volumes

By Jennifer Booton

Ever gone to the South and felt like the people were so warm and friendly? Wish you could experience that everywhere? Wish you could experience that when go out to buy something?

Well, Chipotle(CMG) is the continuation of just that kind of welcome trend in buisness. That trend is of companies who look out for customer and try to give them the best experience possible. It is the reason why Apple(AAPL) does so well. Chipotle tries to get the best local ingredients and make the freshest, fastest healthy food possible. Jim Cramer also mentioned this theme in this video here.

But this makes sense. If you have ever been in a Chipotle or Apple store you know it's an experience. This is an amazing strategy and can be a huge fundamental stock signal for companies to look at. Companies that do this will have a lot of loyal customers who will not only keep buying the products but will also give the company the most powerful type of advertising: word of mouth. How much you wanna bet you're going to stop and try Chipotle next time you see one? These companies will even retain these customers during down times.  That is a huge asset to any company. Talk about recession proof.





Disclosure: Long AAPL]]> Thu, 21 Oct 2010 19:56:05 -0400 Chipotle Mexican Grill Surges on 3Q Profit, Higher Volumes

By Jennifer Booton

Ever gone to the South and felt like the people were so warm and friendly? Wish you could experience that everywhere? Wish you could experience that when go out to buy something?

Well, Chipotle(CMG) is the continuation of just that kind of welcome trend in buisness. That trend is of companies who look out for customer and try to give them the best experience possible. It is the reason why Apple(AAPL) does so well. Chipotle tries to get the best local ingredients and make the freshest, fastest healthy food possible. Jim Cramer also mentioned this theme in this video here.

But this makes sense. If you have ever been in a Chipotle or Apple store you know it's an experience. This is an amazing strategy and can be a huge fundamental stock signal for companies to look at. Companies that do this will have a lot of loyal customers who will not only keep buying the products but will also give the company the most powerful type of advertising: word of mouth. How much you wanna bet you're going to stop and try Chipotle next time you see one? These companies will even retain these customers during down times.  That is a huge asset to any company. Talk about recession proof.





Disclosure: Long AAPL]]> aapl cmg How The iGeneration = iCash http://seekingalpha.com/instablog/568752-micah-dickson/102005-how-the-igeneration-icash?source=feed 102005
Teens using mobile Internet much more, voice much less

Read more: http://www.electronista.com/articles/10/10/14/nielsen.shows.upsurge.in.teen.mobile.internet.use/#ixzz12ZMiG1vM

Very interesting article about kids using the mobile internet more and voice less. This is to me is just a another signal that this trend is here to stay.

My generation is loving these new features and the freedom to access facebook, youtube, and other sites we visit frequently from anywhere. We are going to expect more features and faster devices. This is where I think companies that make the components that make the mobile internet possible could be sitting on gold mines. One company I've been looking at, since it was mentioned on Jim Cramer's Mad Money, is Arm Holdings(ARMH). They make the designs for the microchips for the products such as the iPhone and iPad.

Apple(AAPL) and Google(GOOG) could be the titans of this space. But I believe Google needs to really consider changing their model from making money on pay per click and look at other ways to make revenue. They need to do this before Apple makes the iPhone and iPad accessable to any network. If Google has not found a profitable way to exploit this new market they may fall into the same trap as Sony(SNE) where they have great products but not great margins.

Also, cell phone providers are going to need to expand their capasity. This could be huge for companies that make towers. One example would be American Tower(AMT).

Now is the time to take advantage of this new wave and there are so many ways to play it. Get money!
 


Disclosure: Long AAPL]]> Sat, 16 Oct 2010 20:16:00 -0400
Teens using mobile Internet much more, voice much less

Read more: http://www.electronista.com/articles/10/10/14/nielsen.shows.upsurge.in.teen.mobile.internet.use/#ixzz12ZMiG1vM

Very interesting article about kids using the mobile internet more and voice less. This is to me is just a another signal that this trend is here to stay.

My generation is loving these new features and the freedom to access facebook, youtube, and other sites we visit frequently from anywhere. We are going to expect more features and faster devices. This is where I think companies that make the components that make the mobile internet possible could be sitting on gold mines. One company I've been looking at, since it was mentioned on Jim Cramer's Mad Money, is Arm Holdings(ARMH). They make the designs for the microchips for the products such as the iPhone and iPad.

Apple(AAPL) and Google(GOOG) could be the titans of this space. But I believe Google needs to really consider changing their model from making money on pay per click and look at other ways to make revenue. They need to do this before Apple makes the iPhone and iPad accessable to any network. If Google has not found a profitable way to exploit this new market they may fall into the same trap as Sony(SNE) where they have great products but not great margins.

Also, cell phone providers are going to need to expand their capasity. This could be huge for companies that make towers. One example would be American Tower(AMT).

Now is the time to take advantage of this new wave and there are so many ways to play it. Get money!
 


Disclosure: Long AAPL]]> armh aapl goog sne amt