Saturday, March 12, 2005

Investment ideas in consumer electronics

Here's my Big Bet: iPod will not be the dominant music player in five years. I'm not sure who will replace them or how, but this market will have a lot of volatility.

  • NAPS: a pure-play digital subscription service. Current stock price is around 7, significantly down from its high of about 10 a few months ago.

  • RNWK is priced very low (about $6), partly because of the competition from Apple and Microsoft.

  • PLAY makes the chipset used in the iPod. At $26, they're off from their post-IPO highs in the low-30s in November. These guys are controversial because of the short-term nature of their contract with Apple. I wouldn't touch them unless I understand a bit more about their technology. Are they in Apple because of some fluke? or do they have special non-imitatable technology?

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