The fact that
) sold 1.7 million iPhones at the same time that the Dow broke
under 10,000, signals to me that technology is the best way hedge
against this downward market trend. Experts say we're only on the
cusp of what will be a period of exponential technological
advancement. This means that that the amazing breakthroughs
scientists and engineers have made in the past several decades
will look like child's play when compared with the feats others
will achieve in years to come.
To the average consumer, this means that technology will
become even more integrated into our daily lives. To an investor,
this means that there are great opportunities in tech stocks.
Let's take a look now at three areas most likely to have tech
breakthroughs - and some stocks that could see profit windfalls
in the year ahead.
Keep in mind with each of these examples how corporate
behemoth Apple Inc. grew from a garage-sized start up to the
biggest tech stock in the world. AAPL stock got its start with
Apple's first computer, the Apple-1, built by hand by company
co-founder, Steve Wozniak. A couple of decades, tens of thousands
of employees and billions of dollars later, Apple is one of the
most successful tech companies in existence. Many of the
technologies we use today started off as nothing more than
science projects in labs at small companies - but evolved into
true giants of technology.
Here are just a few of the sectors I'm looking at for
next-generation technology and superior profits. One of these
companies could very well wind up to be the next Apple Inc!
- Luckily, you don't have to look very far past Apple to
find some of these up-and-coming "Apple's." Many of today's
small-cap, high-tech companies play off the success of larger
companies. One company that is doing this is my
). The company is making a killing in the mobile communications
industry - an industry much helped by the success of the AAPL
iPhone and Apple iPad products. China's Spreadtrum has already
gained more than 50% since January 1! As Spreadtrum gains a
larger share of the personal electronics marketplace, it could
very well give Apple and the AAPL iPad a run for its money in the
Trina Solar (
- Alternative energy has come to the fore as concerns about
dwindling supplies of fossil fuels and foreign dependencies have
reached a fevered pitch. Luckily, new technologies are being
developed that are making alternative energy sources more viable.
) is another one of my
stocks, and this Chinese solar company is soaring making products
for commercial, residential and industrial use. The company sells
its products around the globe, and about 90% of its sales come
from Europe. In each of the past four quarters the company has
posted a sizeable earnings surprise, with one amounting to 122%!
For the second quarter, analysts are expecting 39% year-over-year
sales growth. Solar technology could change the way the energy
industry operates, and Trina could very well lead the charge -
revolutionizing its industry much like Apple did.
Internet Gold-Golden Lines
- Another sector worth watching for the next Apple is internet
technologies. The internet has made our modern lives possible and
it has enabled many of our technological strides. Of course the
internet itself isn't anything new, but the way some of today's
companies are using it is entirely innovative and
Internet Gold-Golden Lines
) is my favorite pick in this sector, and also a member of my
newsletter Buy List.. This company is the largest telecom
business in Israel. Its primary subsidiary, Bezeq, is the largest
provider of telecom services in the country. The company has more
than 2.6 million cell phone users and 560,000 satellite
television subscribers. In a country with a population of only
7.3 million, this represents a significant market share. IGLD has
grown rapidly in the past several years and of late has made a
number of new acquisitions. Analysts are predicting that at the
end of the current quarter the company will post a year-over-year
earnings increase of 1,925%! Such an announcement should
certainly send shares soaring.