Archive for June, 2015
Fitbit Inc. (NYSE: FIT) had a very successful initial public offering (IPO) last week.
Shares of the wearable tech leader soared 48% from their offering price. The success underscores the growth ahead for wearables – especially the health and fitness applications where Fitbit excels.
Forecasters at IDTechEx project sales of wearable electronics will hit $20 billion next year and will be valued at almost $70 billion a decade later.
As much as I like Fitbit and its technology, my concern here is that you could get hurt by chasing this stock. Indeed, the first six months for any IPO is a volatile period in which new issues often give up much of their early gains.
That’s why I think tech investors would do well to take a look at Walt Disney Co. (NYSE: DIS).
You know it as an entertainment powerhouse.
But you need to start looking at the “Mouse House” differently.
Back when I delivered to you “The Million Dollar Tech Portfolio” on March 6, I told you that “The road to wealth is paved by tech.”
And I was fully confident in that statement at the time.
Even I, however, couldn’t have predicted the eye-popping success that you’ve had with one of that portfolio’s recommendations.
I’m talking a peak gain of 99.4% in less than fourth months. That adds up to an astounding annualized return of nearly 300%.
Today, I’m going to outline the five catalysts that contributed to the stock’s huge rally.
And I’ll show you why it’s not too late to put a “Buy” order in on this stock if you haven’t done so already. In fact, we could be looking at another double from here.
Let’s see how we’ll get there…
When you’ve knocked around Silicon Valley for as long as I have, you’re bound to hear your fair share of really bad ideas.
And I just heard a bad idea for the ages.
Earlier this week, The Wall Street Journal suggested that Apple Inc. drop its Mac desktop computer division.
On Monday, The Wall Street Journal ran a column suggesting that Apple Inc. (Nasdaq: AAPL) flush its line of Mac desktop computers.
That’s an idea that makes some of the biggest “loser” pitches I heard during my days as an advisor to venture-capital funds sound like polished gems of genius.
First off, slashing its Mac division would sap nearly $6.9 billion – that’s 9% – from Apple’s top line. Does taking a 9% pay cut sound like a good idea to you?
But that’s just the “simple” reason for not following the Journal‘s advice.
Today, I want to show you exactly why Apple needs to protect tech investors and their hard-earned money from this horrible advice.
And I’ll tell you what to do if Team Tim Cook even considers such a move…
Biotechnology is a big opportunity. And China is a big market.
Combine the two and you have a big potential for investment profits.
In today’s Strategic Tech Investor,I’m talking with Money Map PressExecutive Editor William Patalon III, who also heads up the Private Briefing service, about a big profit play in the Chinese biotech market.
It’s a brand-new recommendation…
Our goal here at Strategic Tech Investor is to make money no matter what the market throws our way.
And one way I do that is by putting down the phone, closing the laptop and listening to what you readers have to say.
Today I’m taking a look at seven of your best, most recent questions.
In answering one of them, I “bust” a certain myth about portfolio diversity – and I think it’s a bit of advice all of you can use to make a lot of money.
On Dec. 10, I forecasted a good year for tech investing.
After the tepid first quarter – a 0.7% contraction in U.S. gross domestic product (GDP) – you might think I’d adjust my prediction.
On the contrary, over the following months, I’ve shown you how the technology sector has led the market higher and driven the overall U.S. economy.
So far this year, the tech-heavy Nasdaq Composite Index is up 7%, more than four times better than the Standard & Poor’s 500 Index’s 1.64% gain.
Plus, as we move further into the year, it looks like that grim first quarter was a blip – not the start of trend.
With that in mind, let’s take a closer look at what caused that “blip.”
And then I’ll show you some numbers that prove we’re already bouncing back – and that will boost your tech portfolio for the rest of this year…
“Apple upends any market it steps into,” Michael said during an appearance on CNBC World last night, describing Beats1, Apple Inc.’s (Nasdaq: AAPL) new streaming music service. “This thing is going to be disruptive to the entire music industry.”
Michael also forecast just how much Apple stands to profit from its latest revenue stream and let us know whether he thinks Beats1 is going to be strong enough to take on its chief competitors – Pandora Media Inc. (NYSE: P) and Spotify.
For the rest of Michael’s latest Apple predictions, check out the video.
On Monday, global chip leader Intel Corp. (Nasdaq: INTC) said it’s buying Altera Corp. (Nasdaq: ALTR) in a deal worth $16.7 billion.
Last week, Avago Technologies Ltd. (Nasdaq: AVGO) agreed to pay $37 billion for Broadcom Corp. (Nasdaq: BRCM). And back in March, NXP Semiconductors NV (Nasdaq: NXPI) said it’s making an $11.8 billion acquisition of Freescale Semiconductor Ltd. (NYSE: FSL).
All of which puts the semiconductor industry front and center in a new wave of high-tech mergers.
Through the end of May, global technology and telecom firms had already announced some $406 billion in mergers. That puts the consolidation wave is at its highest level in a decade.
We’d love to take advantage of the profits that come out of these deals. (After all, Altera stock has soared 16% over the past month as rumors of the Intel deal percolated.) But trying to predict M&A activity is a risky proposition, especially for newer investors.
With that in mind, I want to tell you about a play where all these chip mergers are already delivering gains that in the past six months have beaten the overall market by nearly 11-fold.
But that’s not the only catalyst…
I have a confession to make.
Even I sometimes get overwhelmed by the jargon used by tech industry insiders.
From investor presentations to product-launch slide shows, I’ve come across plenty of tech neologisms that made my head spin at the time.
This barrage of here-today-gone-tomorrow buzzwords often serves as a wall between the tech world and average investors, keeping newcomers from understanding what’s really going on. And that’s why you need to focus on Rule No. 2 of Your Tech Wealth Blueprint.
That rule says to “Separate the signal from the noise.”
Today, I’m going to help you do just that by ignoring the technobabble and defining the four tech terms you need to know right now.
Once you understand them, there are literally trillions in profits up for grabs…