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There are a couple of new updates
in the BLOG for your review. On Thursday, I posted new BLOG
entries on the $15 million financing announced by PhotoChannel
(OTC BB: PNWIF) earlier this week, and the atrocious recent price performance
of Commerce Planet (OTC BB: CPNE). If you want to take advantage
of the current absurdly low price of this stock, your new SSL is
$1.45.
The BLOG is your opportunity
to ask questions and offer comments. I will make an effort to answer every
legitimate question. If I don't know the answer, I will contact the management
and get the answer. Alternatively, if you have questions you don't want
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The Microcap
of Microcaps |
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If you are reading this edition,
you probably love investing in low priced stocks. I know I do- it's the
main reason I ended up following this path. I've been involved in this
end of the market one way or another for 20 years, and I love it. I have
admitted this many times in the past: I am a serial microcap investor.
When you invest in a microcap stock,
you are buying the future of a small company with big dreams. Sometimes,
their dream comes true, and then your dream comes true. The money risked
multiplies dramatically, and sometimes in pretty short order. Other times,
it takes years, or never happens.
Next week I am going to be publishing
a new idea. This company is the microcap of microcaps. It is a stock every
microcap investor should own: Why? Because they are in the business of
owning shares in other microcap stocks. If you own this stock, you own
positions in six other microcap companies, both directly and indirectly.
Here's their business model: A private
company comes to them. They provide structure, management, capital, access
to capital, guidance, and resources. In return, they take a fee of 1 million
shares plus whatever they get from cash investments.
When their client companies file
a registration statement and go public- our company spins out free trading
shares in its client companies to its shareholders, and keeps some for
its own portfolio.
Right now, with the current portfolio,
there are about six opportunities for significant appreciation. If any
of the six trades up, the value of your shares in the microcap of microcaps
goes up as well. When they do new projects, you get free trading shares
issued in your name.
Stand by for more information- probably
after the market closes on Tuesday. A must for microcap investors.
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Apple's
Trojan Horse |
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Remember the Sony Walkman followed,
by the Sony Discman? Everyone had one. We played cassette tapes on it.
It was from my generation X.
Then, the digital entertainment revolution
came along. Let's face facts- Sony, and all the other electronics manufacturers
were slow to evolve. In portable digital entertainment, Apple Computer
has simply kicked their butts.
Look at the price performance of
AAPl
over
the past three years. This chart measures the price on a monthly basis.
AAPL's
leadership in the digital entertainment revolution has been rewarded by
Wall Street in the form of a stock that has traded from $10 to $90 in that
time frame.
If you think this price appreciation
is fueled by computer sales- think again. This price appreciation has been
fueled by a pop culture phenomenon known as the "IPOD".
It's simply amazing what IPODS
do these days. You can watch your favorite TV show. Listen to your music
in any order you want. Store libraries, digital pictures, etc. The IPOD
has set the entire music industry on its ear, and forced their business
model to evolve from selling discs to selling downloads. Oh, and by the
way, when you download your favorite songs, you don't have to pay for the
ones you don't want to hear. Itunes has revolutionized digital
music.
So, let's fast forward into the digital
entertainment revolution. Do you think the new Iphone is a good reason
to buy Apple? In the words of Tony Soprano: Forget About
It. The IPhone will do well, but pales in comparison to Apple's
new ITV.
This little baby you see pictured
here is Apple's trojan horse. This box is going to open the door
to every American' living room. This is a set top box for your TV. The
TV is the holy grail of entertainment, simply blowing away digital music.
This little baby promises to revolutionize the way Americans get their
entertainment.
This set top box will integrate with
your cable or satellite. It will replace your DVR or Tivo. Sony Blue Ray
or Toshiba Hi Def DVD? - neither. This isn't Beta Max vs VHS- they are
both dead technology walking.
This set top box has 40 gigabytes
of storage. It will store, in hi def, your favorite TV shows and movies.
It will integrate with your cable or satellite hook up.
All this, and guess what else- this
little baby is COMPLETELY WIRELESS!!!!!!!!!- That's right cable
company- wireless. It will integrate wirelessly with your IPOD, IFone,
and your Apple Computer.
And, you know what's coming next?
ITVs-
40" to 60" reasonably priced hi def LCD tvs with this little baby built
in- all wireless!!!!
Here's where we are going- Get one
of these set top boxes- hook it up to the Internet (wirelessly if you want).
Click a couple of buttons and download your new favorite movie release
off Itunes for a fee equivalent to a movie rental, and make your popcorn.
By the time it's done, you'll be
ready to watch the movie in hi def. And, it will stay on your ITV
to be watched again.
Oh, and by the way, when you come
home with music on your IPOD or pictures on your Iphone,
guess where they are going to be stored?- you got it- in your ITV-
and transferred wirelessly.
Analysts are grossly underestimating
the power of this new device. This is the next IPOD but bigger.
It
strikes right at the heart of the American consumer- in the holy grail
of entertainment- in the TV. This new device will be the Trojan Horse that
makes Apple even more mainstream that it is today. If you think
digital music was big for Apple, wait until you see what they do
with digital TV.
I know it's out of the realm of my
normal microcap ideas, but AAPL probably has a 50% move in it over
the next 6 to 12 months. Watch the new ITV set top box blow away
analysts expectations and open the door for Apple to become THE
premier player in the digital home revolution.
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