That provocative headline is there to get your attention, of course — plenty of folks disagree with Warren Buffett on one thing or another, but few believe him to be “mad.”
No, what Hilary Kramer is trying to do is to draw your attention to the fact that Buffett finally bought a tech stock, IBM (though yes, you can argue that he only bought it because it’s not really a “tech stock” anymore, it’s a consulting and services company) … and that in so doing he’s really just finally doing the smart thing like … well, like Hilary Kramer.
Here’s how she puts it:
“I don’t know if IBM’s a ten-bagger from here, but I do know this … Buffett is right to change his tune on technology stocks.
“Some of the best opportunities I’m finding in the market today are innovative companies that are capitalizing on the unstoppable, fastest growing tech trends.
“Cloud computing, mobile payments, smartphones and tablets … these amazing technological breakthroughs are still in the early stages of a massive growth curve.”
Kramer did score a nice win with her teaser recommendation to buy Motorola Mobility (MMI) earlier this year, nicely timed not long before Google announced they’d be taking MMI over at a nice premium, so she uses that as further justification that she’s got the goods when it comes to mobile telecom stocks … and that her newest recommendation is in that same sector.
What is that newest recommendation, you ask? Well, if you’d like to go cough up $200 bucks for a subscription to her GameChangers newsletter she’ll happily tell you. Go ahead, we’ll wait — and hey, it’s “on sale!”
No? OK, then let’s identify it for you using the clues she throws out in the ad, shall we? Here they are:
“… there is one thing every single smartphone on the planet has in common …
… you need to activate it.
“This company provides automated software and cloud technology that enable customers to activate their accounts and synch their devices to the Internet. Their customers are the wireless carriers and device makers, who rely on its technology to automate the activation process and content management for their subscribers’ devices.
“Their client list is a Who’s Who of the wireless, cable and technology industries… AT&T, Verizon Wireless and Vodafone; cable operators Cablevision, Charter Communications, Comcast and Time Warner Cable; and original equipment manufacturers Apple, Dell, Panasonic and Nokia.
“The company has the first and only legal solution for licensed content transfer from an old device to the new one being activated.”
Sounds interesting as a play on new smart (and dumb, I suppose) phones, and on the increasing numbers of transactions on those phones. How about some more details to help out the Thinkolator?
“Approximately 75% of revenues come from transactions, with the remainder generated from professional services and software licenses….
“… the company recently announced it will continue to play an important role in the iPhone 4S activation process and support all iPhone transactions through AT&T’s online channel….
“And talk about recession proof… since 2004 (the first year public information was available following their 2006 IPO) revenues h