In the last few weeks, I recommended you to invest in a number of companies that are linked to this underestimated trend: The broadband explosion.
In fact, we got into Cisco Systems Inc. (Nasdaq: CSCO) before that company unveiled its new "super-router." I also recommended buying other beneficiaries of the broadband trend, including Juniper Networks Inc. (NYSE: JNPR) and JDS Uniphase Corp. (Nasdaq: JDSU). Today, we continue diversifying into other beneficiaries with a very strong player: EMC Corp. (NYSE: EMC).
For starters, both the U.S. economy and the global economy are faring much better than most of the market expected. In fact, last Friday we saw February's retail sales blow away even the most optimistic forecasts. Sales excluding autos did particularly well, which is good news for Internet sales.
We also saw Cisco Systems Inc. (Nasdaq: CSCO) launch its new "super-router” which is many times faster than existing devices. This will speed up network traffic, enabling faster video, teleconferencing and downloading. More traffic means more bandwidth, and that means more infrastructure.
Juniper Networks beat estimates by a mile in its recent earnings report. It beat both on sales and margins expectations. However, some analysts have raised questions about the company's strategy. And I am one of them.
Let me explain.
To learn more about this broadband explosion - and the two top stock picks I isolated from my research - check out this new report. It's a huge issue - with the potential to cause the kinds of network breakdowns and outright outages that could cost the economy billions of dollars and that could even cost people their lives.
In the course of my research, I discovered a third company that's perfectly positioned to benefit from this broadband paralysis. My conclusion: Cisco Systems Inc. (Nasdaq: CSCO) is going to see a lot of upside from this trend, too.