TheWall Street Crowd is starting to get the picture.
On the cover of the most recent issue of
magazine: "The Death of Cash," an article examining an impending
I've been telling you about
for some time.
The article examines some large companies as the drivers in this
new technological push, which hinges largely on the continued
adoption of portable devices that can be used to complete financial
transactions. Its winners are
Google (Nasdaq: GOOG)
-- because of its Google Wallet initiative, which I was among the
first to cover,
eBay's (Nasdaq: EBAY)
Visa (Nasdaq: V)
Apple (Nasdaq: AAPL)
Facebook (Nasdaq: FB)
Those are great companies that will lead the trend. But while
everyone else is looking at the obvious "winners," it will take
some time for this macro-trend to move the needle for companies as
big as these.
Instead, I've got my eye on a small company that's at the
forefront of this game-changing trend.
To recap, I first told StreetAuthority readers about this
game-changing technology in PAY).
I like this concept for a lot of reasons. For one, I hate it
when mycredit card is taken out of my view. Two of my cards -- a
debit card from my bank in Texas and my CapitalOne Visa -- were
hacked recently, which meant both cards needed to be replaced. I
didn't get stuck with any of the fraudulent charges, but replacing
a card is still a hassle and securing the number on a special
microchip would render fraud far more difficult.
It's also going to open up mobile payments to a whole new
audience, notably among young people and a portion of the
population that doesn't use banks. That's because not only is the
credit card in Google Wallet available as a prepaid card -- no
credit required -- it is also available on a prepaid smartphone
through VirginMobile. This will certainly help push this technology
into the mainstream.
And while I like VeriFone as a way toprofit from this
technology, my research has led me to a stock I like even more.
As I said, it's not Google. Nor do I think it will be
, which runs the network, and it's not
or MasterCard, which administer the card Google Wallet uses.
Instead, the likely winner is a company most people have never
heard of called
NXP Semiconductor (Nasdaq: NXPI)
. It makes the special chips that go in the phone that "talks" to
cash registers. The technology is known as near-field
communications, and NXP is the leader, with critical existing
supplier relationships with all the major phone manufacturers,
Technology draws users, and marketing gets results -- especially
when Google is behind it. I've covered this area in my
advisory extensively (and will continue to update readers), and I
continue to believe that alternative payment technologies are a hot
opportunity for aggressive growth investors.
Action to Take -->
This is a rocket ship you need to book a ticket on. Consider
addingshares of NXPI to your portfolio.
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