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Investing in Tech: The International Consumer Electronics Show

Posted February 1, 2008

A Today’s Financial News Research Report: “According to Gary Shapiro, the President and CEO of the Consumer Electronics Association, $171 billion could be spent on consumer electronics this year, an increase of 6% and better than any other industry’s projection for 2008.” — Ann Sosnowski

By Ann Sosnowski, Editor, Diligent Investor

Today’s Financial News feed provides an independent and practical perspective on the U.S. and global investment markets. Subscribe in a Reader or Subscribe via e-mail

Diligent Investor’s Ann Sosnowksi and TFN’s Krista Das headed to The International Consumer Electronics Show ealier this month looking for hot investing ideas in tech for 2008. They filmed some of the most interesting… watch the financial video here.

Baltimore (TFN): There’s a reason why I call it the biggest show on earth. And no, I’m not talking about the Barnum & Bailey Circus.

The International Consumer Electronics Show in Las Vegas is by far the world’s largest annual trade show for consumer electronics.

With more than 2,700 exhibitors and 140,000 attendees, the show is a humbling experience for even the most seasoned trade show veteran, covering 1.7 million net square feet. It’s obvious that there’s no way you could possibly see and experience everything made available to you, a true letdown for any techie.

And what a good year for consumer electronics it’s expected to be! According to Gary Shapiro, the President and CEO of the Consumer Electronics Association, $171 billion could be spent on consumer electronics this year, an increase of 6% and better than any other industry’s projection for 2008.

Banking on Successful Devices

One of the major factors for the technology industry is strong growth in the semiconductor field and other smaller components for gaming technology, personal devices, mobile phones, MP3 players and so on.

Smaller and smaller consumer electronics were all the rage in Las Vegas. Many products showcased, big and small, were meant to work in tandem with Apple’s newest iPods. In fact, there was an entire section of the exhibit floor dedicated to different kinds of docking stations for Apple’s newest iPods and iPhones… you start wondering how many docking stations could actually be designed. But interestingly enough, Apple Inc. (AAPL:Nasdaq) didn’t have a booth at the CES.

The Year of the Television

Another large trend at the CES this year was television. This was the year of the TV, what with the countdown toward America going 100% HD in 14 months. The switchover from analog to digital television in February 2009 will deliver movie-quality picture and sound as well as high-quality channels to every living room in America. And the televisions and other consumer electronic accessories showcased at the show in Vegas this year will capitalize on that switchover.

Aside from all of the amazing strides I saw in the gaming, audio and video industries at the CES, one particular experience, garnered early in the show, sticks out in my mind — Panasonic’s keynote address by its President, Toshihiro Sakamoto.

Panasonic is the leading brand of Matsushita Electric Industrial Co. Ltd. (MC:NYSE), a company I once held in the Diligent Investor model portfolio. I’ve always been amazed by the company’s ingenuity when it comes to flat-panel and plasma televisions, a still booming industry.

I was excited to attend it the morning before the official opening of the Consumer Electronics Show. It’s one of my most memorable moments to date: being able to see the newest products from a leading consumer electronic manufacturer before anyone else!

Panasonic unveiled its next generation of plasma displays. Taking the push toward green technology seriously, the company has developed a new 42-inch panel television that consumes half the energy of a normal big-screen TV, while still showing the brightest picture available. It also unveiled a less than 1-inch thick, 50-inch plasma screen… and the world’s largest plasma, at 150 inches, if measured cross corner! The screen is as tall as your average man (OK, fine, it’s as tall as your average Japanese man.). But it’s just one-inch thick.

************************************Special Invitation************************************ This thriving tech company could double your money TWICE in two years! This little-known company I’ve just discovered is so diverse and on the cutting edge that they’re developing, designing and even manufacturing vital components. Companies like Samsung, Motorola, Mitsubishi, Nintendo and Apple all have this company’s technology “hidden” inside their products! This relatively unknown company’s share price could soar 100% or more with a staggering amount of ease by this time next year… but the ramp is about to begin! Get in now! *****************************************************************

Exclusive Access to Groundbreaking Television Technology

One of the more exciting interviews we did was with Sony Corp. (SNE:NYSE).

SNE was showcasing their new OLED televisions, which stands for Organic Light Emitting Diodes. These televisions are so innovative that they were in a special roped off area. You couldn’t even get close to them. I know that the video we took of the televisions, their brightness and contrast, won’t do justice to how impressive they are. You really have to be there to believe how clear the picture is. And the televisions use carbon-based organic material to turn electric energy into light.

Because of this technology, which shows the brightest picture ever, SNE is able to produce thinner televisions, at only three millimeters thick!

OLED televisions are able to emit light from the organic material made to produce them. They don’t require backlighting so they run on battery power for longer. And as we know in consumer electronics, most technologies are dependent on good power consumption these days.

Currently, Sony only has one model available for its OLED technology, an 11-inch desktop model.

Watch video

But it’s showing a prototype of its 26-inch OLED television, which has yet to be priced out. And it’s also unveiled a foldable, credit card sized OLED screen. It’s a foldable television, people!

OLED is the future of television innovation. With this kind of technology and a plethora of positive fundamentals, including a 4,200% quarterly earnings growth, Sony Corp. is going to be one of the winners of the next few years. And I consider it a pretty cheap investment at $50, since the stock has a lifetime high of nearly $150 per share.

You could easily make 200% from Sony stock if you invested today.

Emerging Growth Opportunity

There are also some emerging market booths at CES. It appears great things are happening in Malaysia these days. Just look at the iShares MSCI Malaysia Index (EWM). It’s up 695% since late 1998.

We spoke with representatives of Malaysia and picked up some literature on the changes in the country. Malaysia’s Kulim Hi-Tech Park could be considered the country’s Silicon Valley. Companies in the Hi-Tech Park are working on everything from advanced electronics, biotechnology, alternative energy and software engineering.

Photonics, the study of radiant energy, is a growing sector in Malaysia. Companies in the country are looking at the production of technology like optical fibers and organic LEDs to use as semiconductors.

Major operations in Malaysia for photonics include a Malaysian manufacturing site from America’s Finisar Corporation (FNSR:NASDAQ), which chose the Kuala Kangsar region for its first site outside the United States. Finisar is only a little more than $1 per share right now!

With Malaysia’s economy surged 6.7% in the third quarter of 2007 alone, the biggest growth in three years, the iShares MSCI Malaysia Index (EWM) at a little more than $13 per share might be a good way to diversify your portfolio in the technology industry.

Malaysia could be the next China as far as technology is concerned.

And with the American market in a state of flux right now, global investment is a safer way to invest your money.

EWM is in a rising trend that stems all the way from 2002, but just in 2006, the iShares Malaysia Fund attracted higher volume investment. In addition, the EWM pays a dividend of 41 cents. Price is down below its 52-week high of $14.05.

Buy the iShares MSCI Malaysia Index (EWM) at its current price and hold for the next three to five years.

*** Ann has discovered a thriving tech company could double your money TWICE in two years! Learn more…

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