NFC Near Field Communication

By bernigu, November 1, 2011

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Dear Stock GumShoe,
I´ve been an irregular for a little more than 2 months now, and I have to say, that not only are your articles very entertaining but also filled with usefull info.
I don´t have a particular stock to discuss right now, I´m inclined to talk about sector in the tech industry. I´d sure like it if you could share your thoughts on NFC, and if you have a thought on one company, or several in this sector. You see, in all the teasers I´ve seen, they don´t reveal clues on any specific publicly traded company.

Hope to hear from you soon.

Best Regards

Bernardo Gutierrez

Share Your Thoughts

ShowHide Comments (3)
    1. 3984 |
      Travis Johnson, Stock Gumshoe
      Nov 1 2011, 03:42:44 pm

      Hi Bernardo,
      There are a lot of companies working on this, the one large firm that’s usually mentioned is the European chip giant that has a large position in NFC chips, NXP Semiconductor (NXPI) — they just took a tumble this week on weak earnings and guidance, and NFC chips are not their only business. The problem, in terms of “pure play” investments on NFC, is that the card and payment giants are investing heavily in this (Mastercard, Visa, eBay etc.), as are the mobile chip makers (including Qualcomm, the major competitor in this sector with NXPI and a far stronger company) and the tech companies (Google, etc.) and phone makers (Apple, etc.), so to me it seems like it’s really up in the air who will “win” or which companies will find profits in an advance in NFC in lagging markets (for this technology) like the US. It seems like a likely trend but I’m not knowledgeable enough to tell you who the “winners” are going to be. I think NXP is still being actively teased by the Motley Fool in their “your credit card is dead” ad campaign, you can see my older article about that here:

    2. Matias Romero
      Nov 3 2011, 03:16:33 pm

      I’ve been trying to come up with an answer to that very same question myself for a while. And I’m afraid there is no single company that will turn to be a clear winner in the space. I’d rather say there will be a group of first movers that will lead the NFC revolution (that has already started, if you see the new released Android phones). Here’s a list of most of the companies that are already involved in the technology You will see that, as Travis explained, they are involved in different businesses, from the credit card companies, to the chip makers and the software designers. NXP is one of the leaders of the movement, but is also a highly indebted company that could see everyone fly pass them anytime. What I’ve been doing with my personal portfolio (because I do think this technology IS going to change the way we make transactions – not only money related) is building a basket of stocks that would definitely benefit from the trend. So I’ve been building a position in Visa, Mastercard, Google, Qualcomm and NXP, and will probably add some more companies to the mix. However, this is just part of my portfolio as I regard the technology as in a pre-market phase. And as you can see, I’m picking stocks that have solid fundamentals and I’d be happy to be a shareholder of whatever happened to NFC as a whole.

      • Ricky Ricardo
        Mar 10 2012, 03:01:08 pm

        Its not a question of will the turnover from credit card to NFC’s happen, It a matter of when. It also looks like the same players are going to make out on this, you know, like Visa and Mastercard will be the ones who hold the chips. Literally! Gracias!

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