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Posts Tagged ‘rimm’

5 Overvalued Stocks To Stay Away From (CMCR, GRPN, ZNGA, LULU, RIMM, AMZN, NFLX, CMG)

February 1st, 2013

fiveBen Gersten: When you hear mention of a particular stock in a water-cooler conservation, it could be a sign the stock’s in trouble. Read more…

Investing Guide, Markets, Technology

Is Research In Motion Limited (USA) (RIMM) Back In The Game?

January 30th, 2013

Rimm research and motionDavid Zeiler: The RIM BlackBerry 10 arrives tomorrow (Wednesday) as the smartphone pioneer’s last best hope to reverse its decline, but at this point the most Research In Motion Limited (USA) (NASDAQ:RIMM) can hope for is survival. Read more…

Investing Guide, Markets, Technology

It’s The Final Out: Research In Motion Limited (NASDAQ:RIMM) Better Hit A Home Run

January 24th, 2013

Rimm research and motionGeorge Leong B.Comm.: Research In Motion Limited (NASDAQ:RIMM) appears to be rising from the ashes, as investors dive back into the stock of the once-fabled maker of the “BlackBerry.” For Research In Motion (RIM), it has been quite the journey after the investment community Read more…

Earnings, Markets, Technology

Research in Motion, Nokia, and Vivus: B Wave The Seminal Event and The C Wave Up (RIMM, NOK, VVUS)

December 28th, 2012

David Banister: The work at my firm centers firmly around a combination of fundamentals and catalysts, and crowd behavior. Yes, it’s crucial to understand herd mentality if you want to consistently enter profitable swing trades at the Read more…

Education, Markets, Technical Trading, Technology

Apple Inc. (NASDAQ:AAPL): China’s Role In Upcoming Surging Apple Sales

November 16th, 2012

Mitchell Hall: The Apple Inc. (NASDAQ:AAPL) juggernaut keeps on rolling, with a surge in Apple sales for the iPhone 5 and new iPads expected this quarter and the next, according to Morgan Stanley analyst Katy Huberty. Read more…

Markets, Technology

Three Tech ETFs To Be Boosted By Mobile Phones

September 6th, 2010

The launch of new products, rapid growth smartphones and an increase in replacement sales enabled the mobile phone sector to post second quarter growth paving the path to opportunity for the Technology Select Sector SPDR (XLK), the iShares S&P Global Technology (IXN) and the PowerShares QQQ (QQQQ).

According to research firm IDC, manufacturers of mobile handsets shipped a more than 317 million units worldwide in the second quarter of 2010, marking an increase of 15% year-over-year.  One reason behind this demand is the increased appeal of smartphones.  The research firm further stated that sales of smartphones, which account for nearly 19.8% of all mobile device sales, grew nearly 50% year-over-year and is expected to continue to grow.  Drivers behind this exponential growth included an improved business environment, healthy operator subsidies, vigorous competition between vendors, and a growing tide of lower-cost models.

A second force that has supported growth is new technology and enhanced product lines which result in consumers wanting to trade-up.  Mobile phone manufacturers continue to improve technology seeking to deliver the fastest networks and offer unique features which entice consumers.  In fact, a major driver for replacement sales was the transition from traditional mobile phones to trouchscreen and QWERTY devices. 

As for the future of the mobile phones, the sector is set to witness healthy growth, primarily in smartphones.  Furthermore, this growth in smartphones will likely come from international mobile adoption and the desire for increasingly sophisticated services, like GPS and touchscreen.  In some developing parts of the world, like Africa, mobile penetration rates far supersede those of land lines. In fact, the mobile phone penetration rate in Africa is greater than 20% compared to mere 9% for land line penetration.  This emphasis on mobile phones in Africa is being fueled by governments in that it is far less expensive to build infrastructure for mobile phones than it is for land lines.  As a result, many governments in Africa have made cell phone infrastructure a priority and have partnered with major cell phone carriers to facilitate the development of this infrastructure. 

Government’s in Africa and elsewhere made the construction of adequate cell phone infrastructure a priority. In several cases they have performed partnerships with major carriers to facilitate the development of this infrastructure. While factors obstacles such as high taxes, in adequate availability of power and lack of geo-political stability may hinder growth some countries, there are numerous developing countries in which the environment is ripe for further cell phone infrastructure development.

Lastly, the anticipated launch of several refreshed operating systems is expected to further support enhanced demand for mobile phones.  In fact Google’s (GOOG) Android operating system, which is relatively new to the new mobile phones space, has been a hit and is starting to gobble up market share.

  • Technology Select Sector SPDR (XLK), which allocates 10.91% of its assets to Apple (AAPL), manufacturer of the iPhone and includes Google, AT&T (T) and Verizon in its top holdings.
  • iShares S&P Global Technology (IXN), which, in addition to giving exposure to Apple, includes Samsung Electronics and Nokia (NOK) in its holdings. 
  • PowerShares QQQ (QQQQ), which allocates more than 19% of its assets to Apple and also includes Blackberry maker, Research In Motion (RIMM) in its holdings. 

Although an opportunity seems to exist in mobile phones, investing in the aforementioned equities carry risk.  To help protect against this risk, the use of an exit strategy which identifies specific price points at which downward price pressure is likely to be seen is important. Such a strategy can be found at www.SmartStops.net.

Disclosure: No Positions

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Three Tech ETFs To Be Boosted By Mobile Phones




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