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Wednesday, January 26, 2011

Corning Benefits Most From the Verizon-iPhone Marriage

Perhaps the worst kept tech secret in history was that the Apple (AAPL) iPhone would be on Verizon (VZ) someday. Now that it has finally been confirmed by both companies, we're seeing examples of classic buy on the rumor and sell on the news. I'm not saying either company is a sell or a short by any means - I actually plan on accumulating shares of both on weakness. In this article, I will shine some light on one company that will certainly benefit from the increased number of iPhones expected to be sold on the Verizon network.

First I will explain why I am choosing this company versus other companies that will benefit from this news. In the spring of 2010, rumors heated up when The Wall Street Journal broke the news that Qualcomm (QCOM) was ramping up production for the long awaited Verizon iPhone and that it would likely be coming in Q1. As we know, that was right on, since the iPhone is set to debut on Verizon in February. The Google Finance chart below shows the performance of Apple (AAPL), Qualcomm (QCOM), and Verizon (VZ) since May 26, 2010.

To continue reading this, view the full article on Seeking Alpha HERE.
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