Charles Sizemore of Sizemore Capital Management and Jeff Reeves of InvestorPlace chat about the three smartphone stocks at the top of the industry– Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG) and Research in Motion (NASDAQ:RIMM).
Here are the highlights:
Research in Motion: Jeff continues to be bearish (all the way up, admittedly) on RIM and Blackberry going into the January 30 event that will unveil a new line of BlackBerry 10 devices. Charles agrees that Research in Motion’s enterprise dominance is in question vs. other smartphone platforms, and that the consumer market may be too little too late. Sure, there is likely going to be a third player – but that’s more likely to be the Windows Phone from Microsoft (NASDAQ:$MSFT) not RIMM. But what do we know, since the stock has almost tripled from its September lows.
Apple: Jeff likes AAPL stock even after Apple Q1 earnings and remain one of those trapped Apple longs out there. Charles also thinks Apple remains a very strong company and may be a bargain, but the bottom line is that the short-term volatility is dangerous and there could be considerable downside momentum in the next few months. That’s what happens when a crowded trade sees a race for the exits.
Google: Last but not least, while Charles and Jeff agree on the first two smartphone stocks they differ on Google. Jeff thinks that it’s a bullish sign that the ad business seems to be stabilizing and they have a lot of products in the pipeline that could fuel future growth – such as its dominant Android OS. Charles is skeptical, however, that GOOG can maintain its ad edge and wonders if any of the cute projects like self-driving cars will ever hit the bottom line. (See “Microsoft will Crush Google“)