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Tuesday, December 29, 2009

Wireless Data

The wireless infrastructure reports just keep coming in, and reports are not so good. There has only been one device that truly maximized the potential of a wireless world, the iPhone. It has sparked uses that many thought were science fiction until they actually witnessed the device. Now, a second network has had issues (1. ATT and 2. O2).

The iPhone is not to blame. Technically, the providers are to blame for not watching the trends and being proactive in adding capacity on their network fast enough. I blame the decision makers at the network providers.

IMO, this is not isolated. With the world seeing the future, the network providers must accommodate to this future. Android has done a decent job (not as good as the iPhone, but good enough) to bring data driven devices at center stage.

My guess is that Verizon will have these issues soon enough, if enough Android phones are sold or if they take on the iPhone. (But the executives at Verizon Wireless have simply done a better job at their wireless build out. So maybe they are on-top of these trends, and are a few steps ahead.)

Whatever the case, the point of this post is not to point fingers, it is to profit from the obvious need to add capacity.

I know Cramer has been tauting the Mobile trend and even created a Mobile Index, if anyone is interested. I try to boil down the sector to one or two top picks, so I can actually trade the trend.

IMO, the best trades, specifically around the build out of new or added capacity toward the infrastructure, is CSCO and QCOM. At the moment both are not ready for an initial position, and need a bit of a consolidation. For CSCO an initial position can be merited around low/mid 23, and for QCOM around 45-46.

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