Handhelds GG Portfolio
Based on positive feedback to proposal of starting a Handhelds GG (gorilla game) portfolio, I'm here to present candidates for the model portfolio. Unlike Mike Buckley when he set up his Front Office GG portfolio, I'm far away from being an expert in the covered field. I'll need a lot of helps from the thread to build and monitor the portfolio. At the same time, all of us here would be benefited from a broader viewpoint in this dynamic field.
First, I'd like to outline the scope of the portfolio. The handhelds GG portfolio is not a real money portfolio. It's set up to identify and track potential Gorillas and Kings in the emerging handhelds field. Handhelds will be loosely defined as portable devices that offer computing, web access, as well as wireless data and voice communication. By this definition, both PDAs (personal digital assistants, or handheld computers) and wireless smart phones qualify. Ideally, companies in the portfolio should derive majority of their revenues from handhelds, but the portfolio will include companies with technology that could dominate the handhelds market.
Next, let's review companies that are candidates for the Handhelds GG portfolio:
1. Palm Computing: King of PDAs with 75% market share, and a potential gorilla in handhelds O/S (operation system). Its O/S can be found in PDA from Handspring, and PDQ smart phone from Qualcomm. Since Palm is still part of 3Com, I propose the portfolio to purchase 3Com shares now. This allows the portfolio automatically own shares of spin-off Palm. The portfolio will then sell 3Com and use the money to purchase additional Palm shares. (That's one advantage of paper trade: there's not tax consequence to worry about).
2. Psion: This is an indirect play for Symbian, a private company develops Epoc O/S, another potential gorilla in handhands O/S. Psion owns 31% of Symbian, and the remaining is divided between Nokia, Ericsson and Motorola. There's one problem for the portfolio to own Psion, though. It's now only traded in London (It used to be traded at Nasdaq). Anyone knows how to get its quote, and the exchange rate? Once Symbian becomes public, the portfolio will move the money from Psion to Symbian.
3. Qualcomm: It participates battle for king of smart phone, and supports both Palm O/S and Windows CE. However, Qualcomm has announced its intention to sell its handset division, presumably including its smart phone development. If that happens, the portfolio will move the money to the new owner.
4. Nokia: Arguably already the king of wireless phone, it will certainly use its market leading position to push its smart phone.
Some companies that were considered but were not included. From the O/S side, Microsoft is not in the list because its Windows CE uses have been in decline in PDAs. From the hardware and smart phone side, Ericsson and Motorola are excluded due to their traditional prince roles.
Before I finalized the selection and assign weighting to each company in about a week, I'd like to hear comments from our thread members and try to incorporate your suggestions.
Best regards,
John |
