Investment Themes

Investment themes are the building blocks of any successful portfolio.

The themes are created by innovation or paradigmatic shifts in perception that over time drive the herd in a new direction. Our job as portfolio managers is to constantly scour the investment world to discover these themes, track these themes and eventually profit from these themes. To that end, we would like to highlight the following convergence of cable TV, network TV and the burgeoning Internet on demand video platform.

Cable TV subscribers will now be receiving access to programming on the Web. This access is indicative of an infinite video explosion unfolding on the Internet. We expect this theme to gain momentum and offer many opportunities for the intelligent investor to profit. As an example, we believe the companies providing video technology to the Web, those who are making the shift possible with hardware and software designs, will offer a fertile ground for investment. Think of this video explosion as a gold mine. Those who sell the pic and axe tend to be the best investments.

We believe the companies best positioned to beneit from this theme will be the following: Cisco (CSCO), Juniper Networks (JNPR), Netlogic (NETL), Cavium Networks (CAVM), and EZchip Semi. (EZCH)

As always, timing and fortitude are required for any investment to result in success.
More Nets Join Comcast’s Internet TV Test July 14, 2009 PHILADELPHIA — Comcast Corporation (Nasdaq: CMCSA, CMCSK) today announced that it is partnering with Rainbow Media, Scripps, AETN, MGM Impact, and BBC to bring content from 17 more cable networks to consumers through Comcast’s On Demand Online technical trial, accessible via Comcast.net and Fancast.com. On Demand Online is a new service that will significantly expand the number of top-rated TV choices available online at no additional charge to Comcast’s cable customers.
“We are thrilled to partner with all of these popular cable networks to significantly expand the premium content available for the On Demand Online trial,” said Matt Bond, Executive Vice President of Content Acquisition for Comcast. “Today’s announcement highlights the industry’s growing interest to bring long-form content to consumers via a secure and easy to use online platform. Our goal for On Demand Online is to create a consumer-friendly service that significantly expands customer options to access their favorite TV content on any platform at any time, and we are pleased that so many content providers are partnering with us to make this goal a reality.”

Pay TV’s Internet Acid Test
Comcast, TWC Kick Off National Online VOD Trial

Intel Update

If you wish to understand the Intel earning “surprise” and what it means for the economic recovery look no further than the story below. Karl Denninger continues to separate fact from fiction with unparalleled clarity.

SAN FRANCISCO (Reuters) – Intel Corp’s quarterly results and outlook blew past Wall Street forecasts on better-than-expected consumer demand for PCs, especially in Asia, setting an auspicious tone for the technology sector.

Uh, well……
Sure, if you just read the PR on the earnings. Someone filed that story before the conference call, or simply ignored it. The strong growth came in Asia, specifically China, which blew out a huge stimulus program. Ok, but it was specifically stated on the conference call that US consumer sales were weak, and repeating what DELL said earlier, so are enterprise sales. Read more…