jmatthew

ZAGG: Parlaying the iPhone 3G Into Huge Growth

I agree with the author's bullish assessment of ZAGG's 3rd qtr and longer term prospects based on the quality of their product, the huge potential market, and the currently developing opportunity to penetrate that market via retail outlets such as Best Buy, the Car Phone Warehouse, and Walmart (as well as the potential of additional deals with other large domestic and international retailers). However, I think his optimism for a monopoly in this niche market is overdone, as it seems unlikely to me that the company's pending patent for the general concept of protecting a device in thin plastic film will be granted. Furthermore, the barrier to entry seems relatively low to me for this type of product, so I would expect competition to become an increasing and primary concern for this stock going forward.