So much for “decoupling.”
Posted on July 3, 2008
Somehow those economist and strategist types talking about decoupling a few months ago failed to notice one little thing, every country uses energy and food. So even as regional economies develop their own production and consumption ecosystems we will still be tied very closely together thanks to the things we share.
This is another reason we work hard to make sure we provide some researched short ideas for our clients. Our mobile Internet picks are all down of late (Google, Apple, Research in Motion) but our shorts (Iron Mountain, Symantec, Constant Contact, Juniper, Seagate) cushion the blow.
We will never be able to predict stock performance by the month or quarter but going out a year or two has worked well in this market. Our longs are gaining share and have great business models thanks to the industry trends we are seeing. The market remains uninspiring on the long side of things but we’d encourage long-term investors to own the mobile Internet group without hesitation. (We published a short 2-page note($) on this along with price targets and an ecosystem of names on June 5th.)
Tags: Apple, RIM, Google, Mobile Internet
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