"Blog #83 "The Rainmaker". Alcatel-Lucent, Freescale Semiconductor, and Hewlett Packard collaborate to hit a Gran-Slam with lightRadio Cube & portfolio. A scalable,green, combo tower & cloud backend solution to handle the Smartphone Tsunami** "

Dow Jones Industrial Average 12,200.59  (UP) Week ending 03-25-2011

We have been blessed here in Philadelphia with a long history of home run hitters. Ryan Howard, Michael Schmidt, Greg "the Bull" Luzinski, Dick "Richie"Allen, Cy Williams, Chuck Klein and Del Ennis going back.

  Well ...  Alcatel-Lucent ADR (Symbol ALU, $5.34), Freescale Semiconductor (owned by Blackstone Group, Symbol BX, $18.74), and Hewlett Packard (Symbol HPQ, $42.53) have gotten together and hit an IBM tape measure shot Grandslam of Epic proportion. A Rainmaker. One Harry Kalas would say "That ball is out of here!". (Happy Birthday Harry today).  We are talking here like the Roy Hobbs moon shot in the movie "The Natural" that hits off of the top of the light tower and explodes it into showers of streaming light. Are we starting to get the picture here?

Roy Hobbs


lightRadio Cube is a game changer. Everything that exist now for this functionality is suddenly now 10-fold obsolete. Ancient history. Wim Sweldens - the President of the Wireless Division of Alcatel-Lucent  in the press conference on this portfolio from Bell Labs compares it to the "Invention of the transistor".  What is it?  I will need to quote Alcatel Lucent for that:
 
 

 
"lightRadio is a flexible architecture that distributes intelligence throughout the network so that it can dynamically expand to meet growing demands.


lightRadio Cube

 This is accomplished by creating a new architecture where the base station, typically located at the base of each cell tower, is broken into its component elements and distributed through the network or ‘carrier cloud.’ Additionally the various cell tower antennas are combined and shrunk into a single powerful, Bell Labs-pioneered multi frequency, multi standard (2G, 3G, LTE) device that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.

Leveraging Bell Labs innovations in active antenna technology and advanced CPRI compression and partnerships with Freescale and HP, Alcatel-Lucent is first in the industry to announce products in this space.

The lightRadio product family is comprised of the Wideband Active Array Antenna, the Multiband Remote Radio Head, the lightRadio Baseband Processing, the lightRadio Control, and end-to-end management using the 5620 Service Aware Manager (SAM). The product family depends on a number of breakthrough innovations and technologies from Alcatel-Lucent’s Bell Labs research arm and ecosystem of companies."

Here's the skinny on it. Alcatel Lucent has over 200 patents on the portfolio of lightRadio products that they are going to release every six months out into 2014. Freescale Semiconductor has put all the electronics that used to be in a cell tower into a chipset that fits into a cube that  can sit in palm of your hand. The cubes can be put anywhere there is power and a connection.

They can increase the current capacity on a tower by 30 X times.

Oh, and did I forget to mention that   lightRadio reduces energy consumption of mobile networks by up to 50% over current radio access network equipment.

Hewlett Packard is doing all the back end "cloud" work for this partnership. No small task.

The partnership has garnered acceptance from Verizon Wireless, Orange, and China Mobile to uptake this technology. I recommend that
you sign up and watch the press conference. Here is a link.  lightRadio Press conference , green box on right side

This is the advent of a modern day transportation system comparable to Vanderbilt's New York Central Railroad or that  Philadelphia institution the Pennsylvania Railroad. But instead of moving people and freight they are moving information, data, voice, and streaming video all over the world. The greatest railroad of all-time.

I recommend that you accumulate all three of these stocks, (ALU, BX, and HPQ) as a solid 5 year investment.

Freewilly   

** Credit CNBC's Jim Cramer with coining of the term "Smartphone Tsunami"

"Cisco declares a dividend, usually a sign with a large cap tech stock that high growth has ended . So where is the growth in their sector?

Dow Jones Industrial Average 11,859 (Down) Week ending 03-19-2011 

Cisco Systems Inc. (Symbol CSCO, $17.14) has been growing for years by buying 5 to 6 small companies a year to add to their core competency's and maintain growth. The company's 5 year growth rate is 7.93 % . But currently with annual revenues of 42 billion dollars it is very hard to have any growth impact without a major acquisition. It appears now, with the stock down 34.2% for 12 months, that John Chambers and the Cisco board does not currently see a business that fits in with their long-term strategy goals so they have decided to declare a dividend instead. They have 40 billion in cash and short term investments so it is not like they couldn't do it at any time if they wanted to. Unfortunately, when other large techs like Microsoft and Intel have done this their stocks they have sat dead in the water for years. So I would say to avoid this stock for the time being.



Shogi

The terrible events that took place in Japan are definitely going to cause supply interruptions in electronics and other industrial parts. Wafer manufacturing, Flash memory, Electronic epoxies and automotive electronic parts will all be affected. Brilliant new century idea: STOCK SOME FRIGGIN INVENTORY AT YOUR COMPANY AND IN THE SUPPLY CHAIN! Then when we have supply interruptions and you embarrassingly have to report it to wall street and you have to explain to your management why your company stock took an 8 point hit, you will tell them that it is actually not a problem. The Japanese are a resilient people and they should get this stuff back on line quickly with help. I admire their spirit and determination. Then we can get back to Shogi.

So if Cisco is not going to get it done for you, where should you look for growth?  Just a note here and I have witnesses. I start saving my logos for my blog on Thursday in preparation for writing it. So when I went to WAWA to get some dollar change for the car wash that my car desperately needed and pick up a $3.00 copy of Investors Business Daily, I was surprised and a little disturbed that IDB had Riverbed Technology Inc. (Symbol RVBD, $37.52) not only ranked, but ranked NUMBER #ONE on their Top100 list for 03/21/2011. Riverbed is where I am going to lead you to for growth in this sector. 5 year sales growth of 80.50% and projected long term earnings growth of 27.6% make Riverbed the best choice in this sector.

My suggestion though is that Tech stocks will be under pressure this week, as these supply shortages start popping up, and that you look to buy this stock on a little bit of a pullback as the other tech stocks get beat up.  If it does not go down, then feel free to buy it at this price at the end of the week and hold it for a one to three year investment.

 Everyone should continue to support Japan both financially and with prayers. Even after the nuclear issues have been resolved, the country still has sustained tremendous damage and will need allot of assistance.  

Japanese Proverb:

“Fall seven times and stand up eight.”

 Freewilly

"Some Small Cap names for MARCH with catalyst or dynamics for rapid growth. EBIX,THC,CPHD,TZOO,CYH"

Dow Jones Industrial Average 12044.40  (down) Week ending 03-11-2011

 March Comes in Like a Lion, Sangatsu no Raion, lit. March Lion; alternatively called Sangatsu no Lion or 3gatsu no Lion; officially translated as March Comes in Like a Lion. This ironically is the name of a  Japanese TV series set in Tokyo, Japan following the everyday life of a 17-year old Shogi player. Japan has had a roaring March so far, with earthquakes, a 33 foot tsunami washing whole cities away, and now up to 6 of its Nuclear plants affected by these tragic events. All the people and countries of the world need to come to their assistance.

Our US stock markets have been weathering their own storm in March. But alas, spring will arrive here with the Crocuses poking their colorful heads up in white, purple and yellow. The Red winged black birds have arrived at the bird feeder so the green of springtime cannot be far behind. 

So a look at some small cap stocks with budding growth. EPIX Inc. (Symbol EBIX, $28.13) provides a series of application software products for the insurance industry ranging from carrier systems, agency systems and exchanges to custom software development for carriers, brokers, and agents involved in the insurance industry. They have been compared by some analysts to Salesforce.com (CRM). They are buying up companies an expanding quickly.

Tenet Healthcare Corp. (symbol THC, $7.09) has a recent Return on equity of 124.3% . Allot of that was due to a million dollar tax credit on the balance sheet but EBITA is improving at this center city health care provider. When ObamaCare kicks in they should get paid for allot of services that they now give away for free at the emergency room. Earnings per share for 2012 projected at $0.44 cents.

St. Patricks Day this week on March 17th. My stock pick for last year on St.Pat's day was Boston Beer Company (Samuel Adams) (Symbol SAM), and was my best pick of the year last year up 68%.
This year how about some TravelZoo (Symbol TZOO, $ 44.98) to put some green in your beer and in your wallet. 2011 earnings per share of $1.09 and for 2012 $1.48 per share.

Also drink to your health with a couple of healthy stock picks.

CEPHEID (Symbol CPHD, $26.18) is a Sunnyvale, CA. company
that is a molecular diagnostics company that develops, manufactures, and markets fully-integrated systems for testing in the Clinical market, as well as for application in the company's legacy Bio threat and Industrial markets. 5 year sales growth of 21.19% and projected earnings growth of 25%. Earnings ramp up in 2012 to $0.48 cents per share. Get in early.

..... and one last one to go with your Black and Tan above would be
Community Health Systems Inc. (Symbol CYH, $39.61) that is in the hospital business and has plenty of earnings. 5 year sales growth of 31.96%. I guess all us oldsters are ending up at the hospital more. Good numbers, but not allot of institutional buyers in this stock.

All these stocks are higher beta volatility than the stocks that I usually put in this venue, so be careful, but you do need some small cap for growth in your portfolio.

So hope for Springtime and pray for the people in Northern Japan that they can put their lives back together.

Best Wishes for a splendid St. Patty's Day,

Freewilly 

"We throw up our hands at the prices at the gas pump. Why not profit by owning some of the top Oil stocks?"

Dow Jones Industrial Average  12,170  (Down) Week ending 03/02/2011

$3.47, $3.54, $3.68 and outrage in Pennsylvania USA at the gas pump. Little do we know that in California, and international markets they have already been above $4.00 and $5.00 a gallon and someone told me in Amsterdam it is $8.00 a gallon.  Shame on you Royal Dutch Shell.   The threat of oil shortages from the turmoil in Africa to the supplies of Italy, France and Spain is causing a premium in the price of Brent Crude and is pulling up the average price of oil worldwide.  So what is a person to do?


How about taking some positions in Oil companies with good fundamentals that will profit from this turmoil. This would give you a hedge on the price rises. PETROLEO BRASILEIRO (Symbol PBR, $41.48) is a oil and gas driller with gigantic revenues that still trades at a current PE of 13. PBR has earnings of $3.45 per share for 2010 and next year 2012, with current oil pricing premium, probably around $3.70 per share. 5 year sales growth in the company is 13.72% and the stock price has not run up on this current oil price rise.


Devon Energy Corp. (Symbol DVN, $91.12) has tremendous numbers for growth and earnings and trades at a PE of 15.37. The 2011 earnings are a healthy $5.92 per share and projected for 2012 of a healthier $7.65 per share. 49.8% Net profit margins and a 42% 12 month total return make this a great anchor stock for a portfolio.
                                                   
Helmerich & Payne Inc. (symbol HP, $63.33) trades at a PE of 16.4. HP also gives you a kicker of owning some commercial real estate.  2011 earnings of $3.92 and 2012 of $4.32 per share. 5 year sales growth of 14.51% and a 12 month Total return of 68.8% makes this a solid fundamental pick for your account. The 3 year total return of 38% and a very strong balance sheet will let you sleep good at night with this stock.


 Two other names I like here and feel confident in are Apache Corp. (symbol APA, $120.97) and Petrohawk Energy Corp. (Symbol HK, $21.80). Both have great growth dynamics and will deliver great results to help you offset your cost of rising gasoline prices.
 

As always,stay diversified and do not load up totally on one stock category. The oil prices will not keep going up but will settle out at a higher level than last time.US government policies towards oil drilling must change or our economy will be stymied. Of course we need all the alternate energy solutions also, including nuclear power.


We do not want to see gasoline signs that look something like this:
 
So ride your bicycle or pay up and drive. Own some of these stocks and hedge your gasoline bill with some capital gains.
 
Freewilly