LONDON, September 18, 2018 /PRNewswire/ --
It's no secret: tech stocks are often the biggest winners on the market. But how does one spot a tech stock? Sure, there's the big heavy hitters - Apple, Amazon, Facebook - followed by dozens of hardware, software, crypto, blockchain, and app plays. Mentioned in today's commentary includes: AT&T Inc. (NYSE:T), NVIDIA Corporation (NASDAQ:NVDA), Fitbit, Inc. (NYSE:FIT), Cisco Systems, Inc. (NASDAQ:CSCO).
Tech stocks aren't for the faint of heart. What's up one day is down the next-booms and busts rock Silicon Valley practically every week. That's why it's so important to look past the hype.
Looking beyond the trendiest names in tech, investors can find the real winners-diamonds in the rough that might not strike investors as straight-forward tech plays, but which incorporate everything that makes tech so exciting, so vital and so necessary for every portfolio.
Here are five picks that showcase the range of options out there-along with some of the most exciting opportunities waiting to be grabbed:
#1 AT&T (NYSE:T)
This major telecommunications company has spent recent years transforming itself into a media company. AT&T has even acquired Time Warner and DIRECTV. The Time Warner deal, worth $85 billion, has made AT&T a media juggernaut. That's given it an online platform, HBOGO, to challenge emerging heavy-hitter Netflix.
AT&T has been spending like crazy, and its capex this year will exceed $25 billion. The payoff is this: the company is now a diverse tech stock rather than a telecommunications stock, and that diversity gives it flexibility.
Some of its new assets, such as HBO, are highly profitable and will only grow more valuable in the future. The company's underlying assets are based on mobile phone use, which is sure to remain strong (there's little chance of people abandoning their cell phones!).
Plus, this company has paid out a solid dividend to investors. AT&T stock may not be quite as valuable as some of the other heavy hitters, but it's a good one to have for investors looking for reliable returns.
#2 Cool Holdings Inc. (AWSM)
What's the world's most valuable company? That would be Apple, which set a new record this summer when it passed $1 trillion in value. The company reached such lofty heights thanks to its superb tech, its masterful marketing…and its groundbreaking retail.
Now, a piece of that retail market is being offered up to a tiny company, Cool Holdings, that will soon be seeking to profit from Apple's historic success. Apple Stores are the most profitable retail spaces in the world-they earn an average of $5,500 per square foot.
Cool Holdings has been granted a license to open up its own stores all across the U.S., to sell branded Apple products. It's already opened stores in Latin America, and its plan is to open up 200 stores across the United States by 2020, with an average floor size of 1200 square feet.
With a proven retail potential of $3,750, Cool Holdings' expansion could be worth a staggering $900 million-all for a company worth only $29.3 million.
Some say that retail is dead. But Apple revolutionized retail with the Apple Store, and now Cool Holdings is seeking to replicate that success with its One Click line of Apple co-branded stores. The idea is to bring Apple retail space to untapped markets, where Apple stores haven't penetrated.
Cool Holdings has raised $3.7 million to fund its expansion, and it has the full support of Apple Inc. But the company wants to do more than just sell Apple products. It is licensed to sell a range of high-tech products from Bose, Sonos, Moshi and Kanex.
These are seriously profitable brands. Bose alone nearly cracked Forbes' Top 100 and earned $3.8 billion in revenue last year. This is a real opportunity, one that is flying under the radar. Apple's vote of confidence in Cool Holdings shows how profitable this venture could be.
#3 NVIDIA (NASDAQ:NVDA)
Most have probably heard this story: a popular graphics-card manufacturer secures a chunk of market share and rides an explosion in computer sales to become one of the most valuable stocks in the world. Indeed, if one had purchased $1000 in NVIDIA stock ten years ago, it would be worth $11,000 today, an increase of 1000%.
NVIDIA manufactures computer chips, graphics' cards and other computer components. It's one of the biggest success stories of the last few years: the stock has out-performed most all competitors. And NVIDIA shows no signs of slowing down.
The company plans to roll out a new graphics processing unit (GPU) later this year that would act as a strong catalyst for the company's stock. The GPU will primarily be used in high-end gaming PCs, a niche market but one that NVIDIA has a strong hold on.
The company has suffered a set-back or two in recent days. Sales to crypto-currency miners fell way below expectations, as NVIDIA cleared only $18 million instead of the $100 million it had hoped for. Given the tumble in the price of Bitcoin, that wasn't much of a surprise. But the company has bounced back thanks to strong sales to data centers and GPU, which together account for 82% of NVIDIA's bottom line. Neither show any sign of slowing down.
Expect NVIDIA to follow on past years' success. This company will continue to succeed, thanks to its industry-leading position and its strong track-record.
#4 Fitbit (NYSE:FIT)
This tech company made headlines a few years ago when it released its signature product: a wristwatch that measured daily physical activity and athletic performance. Fitbit hit some headwinds last year as its competitors, including Apple, started releasing smart-watches that have eaten into the company's market share.
After a red-hot IPO, Fitbit's stock has tumbled, leading some to wonder if the company would be able to bounce back. Fitbit's active user base took a hit in 2017. Second-quarter 2018 revenue was below the level from last year, but Fitbit's fortunes seem to be improving: Q2 exceeded Q1 revenue by 21% and the average selling price of each unit has increased by 6%.
The company's Ionic and Versa smart-watches are strong sellers, and Fitbit management has claimed that the Versa outsells its competitors from Samsung, Fossil and Garmin in North America. Even if it can't rival Apple, Fitbit has carved out a niche in the smartwatch market, which now accounts for 55% of its total revenue.
Fitbit has 50 million registered users to tap for its smartwatches, and millions of old customers that dumped the company when fitness trackers went out of fashion are starting to come back. A turnaround in the company's stock could benefit investors who bought in when the price fell. Even if Fitbit doesn't recover fully to its lofty heights, this stock could emerge as a winner.
#5 Cisco Systems, Inc. (NASDAQ:CSCO)
Cisco officially got its mojo back in 2018. The year has been a great one for the company, with the stock rising by 25%, nearing an 18-year high and soaring above the S&P average. What's the secret of its success? Cisco has spent the last several years transitioning from traditional pricing to a subscription service, a model that's worked really well for Adobe and other software firms.
While dividends from Cisco have been disappointing, the increase in deferred revenue from subscribers' hints at stronger dividends to come. And this lines up with the company's stellar stock performance. In fact, performance has been so strong, and the outlook so positive, Piper Jaffray has pronounced Cisco a safer bet than Apple or Amazon.
This is early hype for a company that isn't on everyone's tech radar. The upside on the stock, despite the strong gains it's made in the last year, could be enormous.
By. Meredith Taylor
IMPORTANT NOTICE AND DISCLAIMER
PAID ADVERTISEMENT. This communication is a paid advertisement. Safehaven.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively "the Publisher") is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Cool Holdings, Inc. to conduct investor awareness advertising and marketing for Cool Holdings. Cool Holdings will pay the Publisher four hundred fifteen thousand US dollars over four months to produce and disseminate this article and certain banner ads. Cool Holdings may in the future pay the Publisher additional sums as compensation for other articles and marketing services. This compensation should be viewed as a major conflict with our ability to be unbiased.
Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our articles experience a large increase in volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price may likely occur.
This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser. This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company's SEC and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results. This communication is based on information generally available to the public and on an interview conducted with the company's CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher cannot guarantee the accuracy or completeness of the information.
SHARE OWNERSHIP. The owner of Safehaven.com owns shares and/or stock options of the featured companies and therefore has an additional incentive to see the featured companies' stock perform well. The owner of Safehaven.com will not notify the market when it decides to buy or sell shares of this issuer in the market. The owner of Safehaven.com will be buying and selling shares of the featured company for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of financial advisor or a registered broker-dealer before investing in any securities.
FORWARD LOOKING STATEMENTS. This publication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. The publisher notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the companies' actual results of operations. Factors that could cause actual results to differ include, but are not limited to, changing governmental laws and policies, the success of the companies' technology and/or partnerships with other companies, the size and growth of the market for the companies' products and services, the companies' ability to fund their capital requirements in the near term and long term, pricing pressures, etc.
INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you acknowledge that you have read and understand this disclaimer, and further that to the greatest extent permitted under law, you release the Publisher, its affiliates, assigns and successors from any and all liability, damages, and injury from this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.
INTELLECTUAL PROPERTY. Safehaven.com is the Publisher's trademark. All other trademarks used in this communication are the property of their respective trademark holders. The Publisher is not affiliated, connected, or associated with, and is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks.
DISCLAIMER: Safehaven.com is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with Safehaven.com or any company mentioned herein. The commentary, views and opinions expressed in this release by Safehaven.com are solely those of Safehaven.com and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Media Contact - FN Media Group LLC
U.S. Phone: +1(954)345-0611