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December 2007 Archives

December 4, 2007

A Digital Holiday Season

There are some great digital gifts around this year that will earn you high ratings from the recipients, especially among the younger set. And being the tech guy that I am, I want to take a look at some of these super cool products to give those on your list:

  • Guitar Hero III: Legends of Rock: Not a video game! It is a guitar peripheral that hooks up to a Wii, Xbox or PlayStation and moves your air guitar player to the next level. It includes tracks from Alice Cooper, Beastie Boys, Smashing Pumpkins, Heart and Kiss. Fair warning: Shoppers were mobbing the stores on Black Friday for this, so you are going to have to be nimble. It lists for $99.99 and don't expect any discounts -- just be grateful if you can find one.
  • FLY Fusion Pen Computer: This is the FLY, a pen with a camera at its tip. Whatever you write with the pen, the camera scans and digitizes it, and a microprocessor lets you upload everything to your computer. The microprocessor also does calculations and some other neat things. It comes with a 160-page notebook filled with special paper in a package for $79. What a cool present for anyone in middle or high school! Notebook refills are $7.95.
  • iMuffs Bluetooth Headset: Most Bluetooth headsets, whether for cell phones or iPods, make the wearer look like an extra in Terminator 3. Wi-Gear's iMuffs, designed for the iPod, will connect from up to 30 feet away. So you put your iPod in one pocket or belt carrier, and your cell phone in another. If a call comes in, the headphones pause the song, you touch the "play" button on one of the earpieces, answer and deal with the call, and then go back to listening to your music. For only $180, no wires and no more fumbling around.

Be sure to check these products out while shopping for holiday gifts. They are sure to please!

December 11, 2007

Set for an Impressive 2008

Looking forward, it seems like all of the cards are lined up for Energy Conversion Devices (ENER) to have an impressive year in 2008. In addition to the cost cutting and business rationalization going on inside the company, all three of the businesses-driving results should have positive news in 2008. ENER's United Solar segment is the only major solar manufacturer that produces flexible, lightweight solar panels that can be used as roofing material. About 30% of U.S. commercial buildings would need reinforcement to install a large solar system, and United Solar can eliminate that cost. This segment is also in the midst of a huge expansion, from producing 58 megawatts of solar capacity in 2007 to 175 megawatts in 2008. They will steadily add production lines to the new factories and get to 300 megawatts by 2010. Half of their sales are exports, so they will also benefit from the weak dollar.

The second leg of the business is ENER's one-third interest in Ovonyx, the semiconductor memory company. Early in 2008, Intel (which is a shareholder in Ovonyx) will introduce a 128-megabit part code-named Alverstone, and Samsung will produce a 512-megabit part later in the year. The technology is also licensed to Elpida, Hynix, Qimonda and ST Microelectronics. It will initially replace NOR flash memory in cell phones, but I expect it to go on to replace NAND flash for digital cameras and other storage applications. It could eventually replace DRAM, but it will take a while to get the cost down.

The third leg is ENER's 50% interest in the Cobasys joint venture with Chevron, manufacturing nickel-metal hydride (NiMH) batteries for hybrid cars and other applications. The two companies are in arbitration over what to do with Cobasys, and I expect either Chevron to buy out ENER's interest or the two companies to agree to take Cobasys public. In short, ENER has a very good fundamental outlook for 2008.

December 14, 2007

SiRF's Advantages

SiRF Technology (SIRF), developer of semiconductor and software products that are designed to enable location awareness in GPS, is one of the companies that I am most excited about. SiRF has two advantages over its competitors. The first is that their GPS-only chips are just plain better -- faster, more accurate and less likely to lock-up. That used to be a much bigger advantage, but other companies have narrowed (but not closed) the gap.

SiRF's second advantage is that they can combine GPS with a dedicated processor, thanks to a couple of recent acquisitions, and that lets them provide a highly-integrated solution to companies that make products where GPS is a feature, not the main purpose of the device. Of course, the big volume product here is cell phones, but there are many other products that can use GPS as a feature. So, although the transition to high-volume products using an integrated GPS approach raises some risks, it also dramatically expands the company's total available market.

December 19, 2007

Breaking Up Motorola

Motorola (MOT) might be broken up. At a Lehman Brothers conference in San Francisco last week, Chief Financial Officer Tom Meredith said: "I will just share with you that I believe that there is every opportunity for us to create significant economic value, therefore drive shareholder value higher, as a whole. Does that mean, however, that other options aren't vital options? No, not all. And as I said, a change in circumstance sometimes requires a change in action. So I will leave it at that."

Breaking up MOT would be a very big deal. The Mobile Devices division that makes cell phones accounted for 51% of sales in the September quarter, and Motorola's last twelve-month sales hit $38.8 billion. So it could certainly be a stand-alone company.

The Home and Networks Mobility Division accounts for 27% of revenues, selling set-top boxes to cable companies (the old General Instrument business) and wireless equipment to telephone companies. It could be a stand-alone company, as well, but this is a hot area and more likely it would be sold to Alcatel or Siemens. I don't think Cisco could get an acquisition of this division past the antitrust regulators.

The third division, Enterprise Mobility Solutions, sells communications equipment to corporations and governments. It accounted for 22% of September-quarter sales, and it is in a similar position as Home and Networks Mobility. It is big enough to stand alone, but more likely would get snapped up.

So there's the plan: Sell Home and Networks, sell Enterprise Mobility, and keep Mobile Devices as the smaller, still-public MOT. The total value of all this would be well worth it.

About December 2007

This page contains all entries posted to New World Investor Blog in December 2007. They are listed from oldest to newest.

November 2007 is the previous archive.

January 2008 is the next archive.

Many more can be found on the main index page or by looking through the archives.

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