The Internet of Things, 99% Of All Things Are Still Not Connected

Posted by: : Paul EbelingPosted on: January 9, 2014 The Internet of Things,  99% Of All Things Are Still Not Connected

The Internet of Things , 99% Of All Things Are Still Not Connected

CSCO, ARMH, BCRM, INVN, BRCM, QCOM, LLTC, SLAB

The “Internet of Things” refers to the phenomena of every conceivable item from glasses and watches to kitchen devices and home security to cars being controlled and connected by what has quickly become the ubiquitous Internet.

John Chambers, the Chairman and CEO of Cisco Systems (NASDAQ:CSCO) delivered a Keynote speech at the CES, and his presentation focuseddirectly on the theme of the show: The Internet of Things: Where the Money Lies.

Mr. Chambers participation and focus on the extraordinary prospects going forward heights the buzz on Wall Street as the major firms try to Key which companies are set to benefit the most.

They say the Key theme at CES this year is the Internet of Things.

While they believe there is a large degree of hype and most of the new devices will not generate significant revenue now, they agree that wearable devices and home automation categories have already begun to gain traction.

In a report out Wednesday the technology team at Piper Jaffray has listed their top picks.

ARM Holdings PLC (NASDAQ: ARMH) a smart call for smartphone use in the Internet of Things. Its chip designs are in 95% of smartphones, regardless of who makes them. Many expect the primary Internet of Things silicon chips to be comprised of a processor core or microcontroller, a radio component and a sensor. ARM may be at the cutting edge for that design and more.

Investors are paid a small 0.3% dividend. The Thomson/First Call price target for the stock is 58. ARM finished trading at 53.01 Wednesday.

Broadcom Corp. (NASDAQ: BRCM) a former high-flyer trying to fight its way back to prominence. The stock of this provider of semiconductor solutions to wireless and wired communications has seen a rise over the past 4 wks and may be on portfolio managers’ radar. A Key reason for this move has been the positive trend in the earnings estimate revisions picture. For Broadcom’s FY estimate, 9 estimates have gone higher in the past 30 days, compared to no downward revision.

This trend has helped the consensus EPS estimate to trend higher, going from 1.78 a month ago to its current level at 1.84.

Investors are paid a 1.5% dividend. The consensus estimate is is at 32. Broadcom finished Wednesday at $29.51.

InvenSense Inc. (NASDAQ: INVN) is the top pick at Piper Jaffray. The analysts see the company’s biggest beneficiary in the Universe as wearable devices transition from accelerometers to gyros to improve accuracy. The company is introducing new recognition solutions at the CES show, and the analysts looked impressed.

The consensus price target for the stock is 20. InvenSense finished at  20. 21 Wednesday

Linear Technology Corp. (NASDAQ: LLTC)  a top name at Piper Jaffray too. The company produces power management, data conversion, signal conditioning, radio frequency (RF) and interface integrated circuits; µModule subsystems; and wireless sensor network products. Investors receive a solid 2.3% dividend.

The consensus price target for the stock is 40. Linear finished trade at 45.18 Wednesday.

Qualcomm Inc. (NASDAQ: QCOM) is a  Blue Chip technology stock to buy for Y 2014 at many firms. The company makes a healthy operating profit from the sale of chips into more than half of the world’s smartphones and tablets. But a full 67% of its operating income comes from the licensing of its wireless technology and patents, it gets a piece from just about every cellular device sold.

Investors are paid a 1.9% dividend. The consensus price objective is 80. Qualcomm finished at 73.68 Wednesday.

Silicon Laboratories Inc. (NASDAQ: SLAB) an industry leader in the innovation of high-performance, analog-intensive, mixed-signal integrated circuits. Developed by a world-class engineering team with unsurpassed expertise in mixed-signal design, Silicon Labs’ diverse portfolio of patented semiconductor solutions offers customers significant advantages in performance, size and power consumption.

The consensus price target is 47. The stock finished Wednesday at 42.62 .

Today, it is said that more than 99% of things in the physical world are unconnected.

The Big Q is: what will happen as more people, processes, data and things connect?

The Big A: networked connections will become more relevant and valuable than ever before, as information leads to actions that create new capabilities and unprecedented economic opportunity. This has been dubbed “The Internet of Everything,” and it is here.

Wall Street is well aware, participants are learning it now.

Stay tuned..,

HeffX-LTN

Paul Ebeling

 

 

 

 

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.
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