Apple Inc. (Nasdaq: AAPL) yesterday (Thursday) supplanted Microsoft Corp. (Nasdaq: MSFT) as the largest technology company in the United States. Apple now trails only Exxon Mobil Corp. (NYSE: XOM) in size, but that size will only make the company a bigger target if it fails to use its newfound market position prudently.
Just last month, Microsoft's market capitalization exceeded Apples by some $25 billion. But Apple has finally overtaken one its great archrivals. But being the new standard bearer for the technology sector brings with it more than bragging rights. It also will make Apple a bigger target for its competitors and government scrutiny.
As far as competition is concerned, there's no question that Apple has outdone Microsoft.
Technology Article
Eight Semiconductor Stocks To Charge Up Your Portfolio
Today's world literally runs on semiconductors. Virtually every device that plugs in or uses a battery has its functions controlled by semiconductors of one type or another. And, with spending curtailed in the recent financial crisis, many of the semiconductors in use are either wearing out or going out of date. But, good times are here again for semiconductors. Here's how to make a profit on the new semiconductor boom market.
ABB Ltd. Buys Smart Grid Software Maker to Jump Ahead in Energy Management Industry
Swiss engineering company ABB Ltd. (NYSE ADR: ABB) today (Wednesday) announced it will buy software maker Ventyx for over $1 billion to strengthen its position among energy management competitors by offering smart grid electricity distribution.
ABB will integrate Ventyx into its power-systems division, allowing it to provide modern smart grid software to grid operators who want to run a more efficient distribution system. The deal represents electrical engineering companies' need to prepare energy management networks to handle an increasing supply of renewable sources, like wind and solar.
"The big advantage for energy companies, utilities and industrial customers is that they will now have a single supplier of enterprise-wide information technology platforms and power automation systems," said ABB Chief Executive Officer Joe Hogan. "The advantage for our shareholders is a cash-generating acquisition in an exciting growth market, with a strong management team, a highly complementary offering and geographic scope, and an attractive return on capital employed."
ABB will integrate Ventyx into its power-systems division, allowing it to provide modern smart grid software to grid operators who want to run a more efficient distribution system. The deal represents electrical engineering companies' need to prepare energy management networks to handle an increasing supply of renewable sources, like wind and solar.
"The big advantage for energy companies, utilities and industrial customers is that they will now have a single supplier of enterprise-wide information technology platforms and power automation systems," said ABB Chief Executive Officer Joe Hogan. "The advantage for our shareholders is a cash-generating acquisition in an exciting growth market, with a strong management team, a highly complementary offering and geographic scope, and an attractive return on capital employed."
HP Shakes Up Smartphone Market With $1.2 Billion Palm Buyout
Hewlett-Packard Co. (NYSE: HPQ) today (Thursday) bought Palm Inc. (Nasdaq: PALM) in a $1.2 billion deal that marks a giant step by the computer firm into the burgeoning smartphone market and brings to a close speculation about a struggling company that was running out of options.
The deal will catapult H-P, the world's largest tech company in terms of revenue, into direct competition with a handful of other tech giants - including Apple Inc. (Nasdaq: AAPL), Google (Nasdaq: GOOG) and Microsoft (NYSE: MSFT) - in the rapidly growing smartphone market.
H-P said it would pay $5.70 a share in cash for Palm, representing a 23% premium over its Wednesday closing price.
The deal will catapult H-P, the world's largest tech company in terms of revenue, into direct competition with a handful of other tech giants - including Apple Inc. (Nasdaq: AAPL), Google (Nasdaq: GOOG) and Microsoft (NYSE: MSFT) - in the rapidly growing smartphone market.
H-P said it would pay $5.70 a share in cash for Palm, representing a 23% premium over its Wednesday closing price.
Hot Stocks: The iPad Proves It's Not What Apple Sells, It's How Apple Sells It
Apple Inc.'s (Nasdaq: AAPL) iPad has lived up to the hype, garnering rave reviews and meeting sales expectations. That success is particularly impressive because previous attempts by other companies to launch similar products were met with abject failure.
Because they make up less than 1% of the personal-computer market, few observers realize that so-called tablets have been around for about twenty years now.
The first models offered detachable keyboards, pen-based applications, and were priced in the thousands. A few contributed to companies declaring bankruptcy shortly after their debuts. Most were as pricey as a laptop but without nearly as much memory or competitive features - "underpowered and overpriced" were the usual complaints.
Because they make up less than 1% of the personal-computer market, few observers realize that so-called tablets have been around for about twenty years now.
The first models offered detachable keyboards, pen-based applications, and were priced in the thousands. A few contributed to companies declaring bankruptcy shortly after their debuts. Most were as pricey as a laptop but without nearly as much memory or competitive features - "underpowered and overpriced" were the usual complaints.
"Capital Waves" Point to High-Tide Profits for Commodities, Tech and Emerging Markets
It was November 2008, and a global financial crisis that started in the U.S. credit markets had already leveled such one-time corporate stalwarts as Lehman Brothers Holdings Inc. (OTC: LEHMQ), Fannie Mae (NYSE: FNM) and American International Group Inc. (NYSE: AIG). The U.S. economy was in an apparent freefall, and stock prices wouldn't hit bottom until early the following March.
In the midst of that chaos, Money Morning's Shah Gilani made five predictions, anticipating five looming "aftershocks" he said were certain to come true.
He was correct on all five counts - every prediction came true.
This wasn't the first time Gilani has made such bold predictions - and been proven right. In July 2008, for instance, when crude oil was trading at a record high of $145 a barrel, he predicted that the "black gold" was destined for a major fall - even though many pundits were calling for prices to spike as high as $200, $250, $300 and even $500 a barrel.
Once again, Gilani was right.
Gilani, a retired hedge-fund manger, Money Morning columnist and noted expert on the global credit crisis, has been able to do this time and again for one simple reason: He understands the power and profit potential of the global financial market's "capital waves."
"Capital waves create some of the biggest trading opportunities in the markets today," Gilani said in an interview last week. "Investors who are able to spot capital waves and identify their likely impact have a huge advantage over those who don't."
And the profit plays that loom are shaping up as the biggest and best, yet.
In the midst of that chaos, Money Morning's Shah Gilani made five predictions, anticipating five looming "aftershocks" he said were certain to come true.
He was correct on all five counts - every prediction came true.
This wasn't the first time Gilani has made such bold predictions - and been proven right. In July 2008, for instance, when crude oil was trading at a record high of $145 a barrel, he predicted that the "black gold" was destined for a major fall - even though many pundits were calling for prices to spike as high as $200, $250, $300 and even $500 a barrel.
Once again, Gilani was right.
Gilani, a retired hedge-fund manger, Money Morning columnist and noted expert on the global credit crisis, has been able to do this time and again for one simple reason: He understands the power and profit potential of the global financial market's "capital waves."
"Capital waves create some of the biggest trading opportunities in the markets today," Gilani said in an interview last week. "Investors who are able to spot capital waves and identify their likely impact have a huge advantage over those who don't."
And the profit plays that loom are shaping up as the biggest and best, yet.
For the full transcript of Gilani's detailed question-and-answer session, please read on.
Buy, Sell or Hold: Bank on the Broadband Revolution with EMC Corp. (NYSE: EMC)
Major fund managers on Wall Street continue to be very cautious and underestimate certain key trends - one of which they have yet to even catch on to.
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).
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).
Google Unveils Another Surprise Twist in China Drama
For the first time in two months there is a new development in Google Inc.'s (Nasdaq: GOOG) feud with China. The search engine today (Monday) began redirecting traffic from its China page, google.cn, to its uncensored Hong Kong page, google.com.hk.
Google said the move is "entirely legal," and said it will continue research and development activities in China. Some market observers had expected Google to announce its total withdrawal from the country today, as the company's disagreement with Beijing had reached a standstill. But Google's new approach is another surprise development.
Google said the move is "entirely legal," and said it will continue research and development activities in China. Some market observers had expected Google to announce its total withdrawal from the country today, as the company's disagreement with Beijing had reached a standstill. But Google's new approach is another surprise development.
Capital Wave Investing: Is it Time to Profit From the Cash-Rich Technology Sector?
A little more than one year after the economy hit bottom during the Great Recession, American companies are sitting on nearly $1 trillion in cash, a capital wave serving as a call to action for a long-moribund mergers-and-acquisition market.And history shows that a burst of M&A activity can be just what the doctor ordered for a stock-market rally that's looking for a booster shot: After a near-record-breaking rally in the first year of the current bull market, a flurry of dealmaking could be the catalyst that fuels Year Two of the rally - perhaps even pushing stock prices back to, or even past, their previous highs.
As a rule, an increase in M&A activity is a bullish sign for both the economy and the stock market, says Money Morning Contributing Editor Shah Gilani, who tracks deals for his own advisory service, The Capital Wave Forecast. As far as capital waves go, this surge in cash-driven deals is one of the most powerful around, and will have substantial spillover effects.
As a rule, an increase in M&A activity is a bullish sign for both the economy and the stock market, says Money Morning Contributing Editor Shah Gilani, who tracks deals for his own advisory service, The Capital Wave Forecast. As far as capital waves go, this surge in cash-driven deals is one of the most powerful around, and will have substantial spillover effects.
Buy, Sell or Hold: JDS Uniphase Corp. (Nasdaq: JDSU) Is Yet Another Rising Star in the Broadband Revolution
We keep getting good news with respect to the broadband revolution. If you have not read my prior posts, do not miss this special report on it. These developments are revolutionizing the tech world right now and we are at the very inception of an explosive and highly profitable trend.
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.
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.
Buy, Sell or Hold: Juniper Networks Inc. (NYSE: JNPR) Will Be the Next Company to Profit from the Broadband Boom
Given the lightening fast expansion that we are seeing in broadband market - something I mentioned last week in my recommendation of Cisco Systems Inc. (Nasdaq: CSCO), we are going to look at another strong beneficiary in the sector: Juniper Networks Inc. (NYSE: JNPR).
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.
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.
Hot Stocks: New Media Player Just One Reason to Like Seagate Technology
Disk drive makers are usually seen as the poor stepsisters of the consumer electronics world.
While their more glamorous cousins like Apple Inc. (Nasdaq: AAPL), and Sony Corp. (NYSE ADR: SNE) bask in the spotlight, storage providers like Seagate Technology (Nasdaq: STX), while equally important, draw little fanfare.
Few realize for instance that shares of Seagate, the largest disk maker in the world, have just about quadrupled in the past year.
While their more glamorous cousins like Apple Inc. (Nasdaq: AAPL), and Sony Corp. (NYSE ADR: SNE) bask in the spotlight, storage providers like Seagate Technology (Nasdaq: STX), while equally important, draw little fanfare.
Few realize for instance that shares of Seagate, the largest disk maker in the world, have just about quadrupled in the past year.
Schlumberger's Acquisition of Smith the Latest Evidence of a Takeover Trend
With global energy demand expected to surge over the next decade, straining production, it's no surprise that many of the sector's biggest players are racing to acquire competitors whose expertise will help them thrive in a more competitive environment. And Schlumberger Ltd. (NYSE: SLB) on Sunday became the latest energy giant to bring a competitor […]
Where's the "Big Money" Headed Now?
The remarkable week that just concluded actually began on February 12, which was two Fridays ago. Stocks plunged in the opening minutes of trading that morning as investors' faith in the global economic recovery was shaken. In China, policymakers again tightened monetary policy in a fight against rapid credit growth and fast rising asset prices. In Europe, which is plagued by concerns over the bailout of deeply indebted Greece, a report showed economic growth slowing dramatically.
For a few minutes, it looked like all of the prior week's advance would be lost and stocks were preparing to plunge into oblivion. But then, encouraged by a positive retail sales report, buyers swamped the tape -- focusing their attention on smaller, riskier companies, particularly in the technology sector. And off we went for the next six sessions.
To find out where the "Big Money" is headed now, click here.
For a few minutes, it looked like all of the prior week's advance would be lost and stocks were preparing to plunge into oblivion. But then, encouraged by a positive retail sales report, buyers swamped the tape -- focusing their attention on smaller, riskier companies, particularly in the technology sector. And off we went for the next six sessions.
To find out where the "Big Money" is headed now, click here.
Investment Strategies: For Market-Beating Profits, Here Are Three Stocks That Aren't on Wall Street's Radar Screen
When I was an analyst at the uber-contrarian Avalon Research Group, we only initiated coverage on a stock if our opinion went against the consensus, or if the security was barely (or not at all) followed by Wall Street.
For this column, I'm going to focus on the latter - and show you how this seemingly unconventional investment strategy can actually make you a lot of money.
If you want quantifiable proof, consider this nice bit of research from Cem Demiroglu at Koc University in Turkey, and Michael Ryngaert at the University of Florida: In 2008, they conducted a study that showed that stocks without any analyst coverage experienced a 4.82% higher return than their peers after coverage initiation.
The lesson here is simple.
For this column, I'm going to focus on the latter - and show you how this seemingly unconventional investment strategy can actually make you a lot of money.
If you want quantifiable proof, consider this nice bit of research from Cem Demiroglu at Koc University in Turkey, and Michael Ryngaert at the University of Florida: In 2008, they conducted a study that showed that stocks without any analyst coverage experienced a 4.82% higher return than their peers after coverage initiation.
The lesson here is simple.