Sooner or later we will collectively agree on a name for the next era in computing; post-PC, Social Local Mobile (SoLoMo) and mobile computing are names used quite often. A few days ago I was introduced to a new term – Evernet. According to whatis.com:
The term Evernet has been used to describe the convergence of wireless, broadband, and Internet telephony technologies that will result in the ability to be continuously connected to the Web anywhere using virtually any information device. Considered the next generation of Internet access, the Evernet assumes the emergence of an amount of bandwidth that would enable millions of homes to access the Web through inexpensive cable modem, DSL, or wireless connections.
I love the definition, but I am hoping for a catchier name. An investor, Stewart Alsop, was recently on Bloomberg West talking about a bubble in the Evernet. This was the first time I’ve heard of the term and here is a guy already talking about a bubble in it. Since most talking heads completely missed the internet and real estate bubbles, they are determined not to miss the next one. To play it safe – now everything going up is a bubble. I imagine the talking heads sleep better taking comfort in knowing that we were warned.
I normally tune out people whenever they utter the B word. However, Alsop was saying something different. He was saying that there is a new bubble on the horizon and we are years away before it pops. Now I was all ears.
His thesis is that the next big thing is a ubiquitous broadband network that’s always present whether you are on a cell phone, in your office or at home. Its key attributes will be its ubiquity and speed. More access. Faster access. Where do I sign up?
This slide helps us think about this in investable themes.
The most recent addition into my 8 Ballers of Mobile portfolio, TIBCO , fits perfectly into Alsop’s theme. TIBCO’s software enables companies to process their “Big Data” in context.
Where I slightly differ with Alsop is that he includes Social media in the internet (pre-Evernet) era. Social Media is one of the forces driving the desire for an ubiquitous fast connection. In my opinion, the next era will not only be about the plumbing (Evernet); but the applications like Social Media as well.
The 8 Ballers of Mobile is portfolio leveraging the current trends in Mobile, Social and the Cloud. The portfolio will not contain more than eight stocks. Under performers are constantly sold. This pruning strategy combined with the use of the 200DMA as a catastrophic stop – serves as the primary risk management methods. Stocks are not equally weighted.
Year to date performance: 8 Ballers of Mobile 24.7% vs. S&P 500 8.3%
Disclosure: Currently long: ARM Holdings, NXP Semiconductor, Aruba Networks, TIBCO, Open Table, Sina Corporation, Apple. Positions may be sold at any time.
Transactions in 2011 include:
Buys: NXPI 2/1, ARMH 2/23, SINA 2/23, ARUN 2/23, TIBCO 4/15
Sells: FFIV 2/23, RVBD 4/1, QCOM 4/13