Mobile Internet Is The Next Big Thing!

Sure I know that Jim Cramer is an ego-driven, bombastic, blowhard, but his latest column in The New Yorker, The Bottom Line, sent me scurrying to the chart books to check on the “mobile internet.” Cramer says, in The Biggest Thing Since E-mail.

As big and as game-changing as the personal computer and the Internet were, I believe the mobile Internet-the integration of voice, data, video, and storage in one handheld device-will be more lucrative than both.  Maybe both put together. That may sound far-fetched now, but these devices, chock-full of applications and hardware that have begun to rival those of personal computers, have finally realized the elusive holy grail. - Cramer

Cramer says the beneficiaries are Apple (AAPL), naturally, Research In Motion (RIMM), Palm (PALM), Qualcomm (QCOM), “which makes the semiconductors, the brains, for almost all of the next-generation smartphones”, Cisco (CSCO), “which provides the infrastructure that the telecommunications giants need to get voice and data to its rightful place”, Ciena (CIEN), Tellabs (TLAB), and ADC Telecom (ADCT), “Cypress Semiconductor makes the touch screens; SanDisk (SNDK) makes the short-term memory that allows you to store reams of data, music, and video; Tessera (TSRA) has the patents for the optics for the smallest and best cameras; and Cree (CREE) provides the lighting. ON Semiconductor (ONNN), RF Micro (RFMD) and Skyworks Solutions (SWKS) provide the signal strength needed to accept and receive information on your phone.

I wrote about Apple a few days back. I was looking for a pullback of about 10%. We got a pullback from $168.67 to $159.42, but today it’s at another new high, above $170. The stock looks like it has developed a broadening top whose lower end would be the 200 dma or about $155.

Cisco’s trend turned bullish according to Trade Triangles at $17.98 on April 2nd. The stock is in a short-term trading range, but a move above 22.22 would be a breakout with a target to $24 or a Fibonacci retracement.

CREE is currently on Dan Messer’s short list. He writes “Over the last 9 months the stock has had 4 separate occasions where it moved 10 to 12 points higher in a very short period of time. Each of those times the stock fell by an average of $4 points.” He think the stock is expensive and is looking for a pullback once more.

I’ll have more to say about the others in a future post.

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