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Author has a degree in Engineering and is an avid investor in the market. Experience in industrial materials and structures. In college studied atomic & nuclear physics as well as material engineering. Eastern European
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  • 50 app stocks that could go up "500%" 2 comments
    Feb 10, 2011 1:17 PM | about stocks: FNSR, VIAV, OPLK, CIEN, JNPR, FFIV, CRM, VMW, EQIX, EMC, CTXS, ALTR, AVGO, OCLR, NETL, XLNX, SMTC, OPXT, FJTSY, MLNX, INTC, CSCO, T, VZ, BCE, CHT, LU, TEF, CTL, CTL, S, FTR, TWTC, BBRY, AAPL, HPQ, DELL, SHEN, ALSK, CBB, ATNI, CVC, T, DISH, CMCSA, VIA, TWC, DISCA, SJR, VMED, CHTR, LBTYA, TIVO, CRWN

    $FNSR $JDSU $OPLK & 50 app stocks that could go up 500% 

    MarketWatch Blogs

    Cody Willard
    • December 2, 2010, 11:25 PM EST
    50 app stocks could go up 500%

    Get ready for the coming app-bubble. I mean, come on, you know that even as the early adopters have been using apps and smartphones for the last few years, it’s just now starting to become a mainstream phenomenon. This year some 250 million people will buy a smartphone, up from 150 million last year and on its way to more than a billion people in less than a decade from now. When was the last time you heard growth statistics for a marketplace that blew your mind like that? Yup, probably back when you first started researching ways to invest in the Internet.

    And hopefully you were one of those people who got in that second phase, after the early adopters had worked through much of the bugs and the mainstream masses were just starting to get their first Internet accounts back in 1996/1997, right? And hopefully you’re one of those people figuring out ways to invest in the app bubble now that the early adopters have worked through much of the bugs and the mainstream masses are just starting to get their first apps…right now in 2010/2011, baby!

    If you thought the Internet bubble was wild, you ain’t seen nothing yet. The potential for apps to change not just how we consume telephone, video, and social networking services like never before, but we also don’t know just what kinds of Googles/Facebooks/Netflixes are going to be created this year, next year and the year after. After all, it wasn’t until late 1998 that Sergei and Brin even started the company that would create the single largest fortune out of the Internet– Google, whose valuations are now measured by the hundreds-of-billions.

    How many markets can you name that will double and triple in size in the next three to four years? How many multibillion dollar markets can you name that will grow like that? How many markets tap into what will eventually address two to three billion customers?

    Whatever else you do with your investments, get into apps. Right now. The app bubble cometh.

    I realized that I needed a map of which companies are doing what. So I broke down the app ecosystem into eight different categories and started analyzing every single stock that’s got big exposure to the App Revolution right now. And then I assigned each stock a rating on a scale of 1 to 10

    The resulting 56 page report is now called “Cody Willard’s 50 Stocks for the App Revolution” and it has helped me understand how we should be positioning the part of our Revolution Investing model portfolio that we’ve allocated to the this incredible market place. I’m offering the report to the public for $79 at http://AppRevolutionStocks.com or as an eBook for your Kindle or iPhone at http://www.smashwords.com/books/view/31192.  Or you can sign up for my weekly Revolution Investing newsletter and I’ll send you one section of the report per week and then the whole report when complete your one month trial.

    Here’s the Finisar write up from that report from BEFORE the company’s blow out quarter reported Wednesday after the close:

    Company:        FNSR - Finisar Corporation

    Summary:        Finisar supplies optical components that go into fiber optic                     networks. As more and more devices are demanding data to be                 transmitted over the internet, fiber optic networks will be required                 to handle all that data transmission. Finisar will provide                     components that go into those networks.

    Balance Sheet:        Cash and Cash Equivalents:          207  M
    Short Term Investments:           —0
    Long term Investments:          12.2 M
    Total Cash:                219.2 M

    Total Debt:                   115 M
    Net Cash:                104.2 M

    Outstanding Shares:              76.5 M
    Net Cash / Share:              1.35

    Share Price:                   19
    Enterprise Value / Share:           17.65

    Total Market Cap:             1.46 B
    Enterprise Value:               1.24 B

    2012 Sales Growth:            12.4%
    2012 Earnings Estimate:        1.71
    Enterprise Value Multiple:        10 Times Forward Earnings
    Dividend & Yield:            N/A

    Finisar’s finally integrated many of the very smart acquisitions it made back in the great telecom depression days of the early 2000s.  In the last few years, it’s finally generating real cash and real earnings, and Wall Street has responded at times by running the stock way ahead of itself, only to let it crash back down again.

    It’s hard to believe this stock was literally trading at $2 a share, or just about one times what it will earn in 2012 back just last year.  But it’s also hard to believe that this stock once traded at more than $400 a share back in 1999.

    The stock might hit $40 a share in the next few years during this ongoing network buildout growth phase, but it’ll never see that twenty-fold increase from these levels to get back to even for its shareholders of a decade a ago.

    Revolution Investing rating: */10

    To get my Revolution Investing analysis and rating for F5, Cisco, Alcatel-Lucent, Juniper, Autodesk, Adobe, AT&T and 43 other app stocks some of which you’ve probably never heard of, you can simply order the report today by visiting http://AppRevolutionStocks.com and I’ll personally email you the report or get it as an eBook for your Kindle or iPhone at http://www.smashwords.com/books/view/31192.

    In the report, I give you some of my trademarked cut-throat Revolution Investing analysis including some history of the company, how it’s trying to position itself for the app revolution and how much I like or dislike the investment prospects for that company.

    And for those of you who really just want a short hand rating system, don’t worry. I put a Revolution Investing rating from 1 to 10 on each stock.

    I. App platforms/software: (8 stocks)

    II. App gadget vendors: (7 stocks)

    III. App component suppliers: (12 stocks)

    IV. App network infrastructure: (6 stocks)

    V. App Infrastructure Component Suppliers: (3 stocks)

    VI. App equipment contractors: (5 stocks)

    VII. App network providers: (6 stocks)

    VIII. App retailers: (3 stocks)

    Get ‘em before they’re hot, dear readers. Here’s what one subscriber wrote me last week:

    You can tell people that I bought AAPL, FFIV, and GOOG back several years ago when you recommended them in your newsletter. Also, that GOOG Call option and recently scaling into RVBD have been very profitable for me. Your newsletters have been the best investment I’ve made!



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Comments (1)
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  • Loungin
    , contributor
    Comments (67) | Send Message
     
    I did a ton of research on App stocks myself and would recommend ALIF to investors, especially how it's trading right now.
    17 Mar 2011, 05:41 PM Reply Like
  • Sunny Goklani
    , contributor
    Comments (635) | Send Message
     
    Share with us, some insights from your research?
    Thanks,
    17 Aug 2014, 08:01 PM Reply Like
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