Broadband and another Interesting Investment Blog

We´ve come across another interesting investing blog. Check it out at http://rationalinvesting.blogspot.com/. We liked the blog,  particularly since the guy writing it has a long-term, non-trader, outlook and we never thought we would find someone who was more bullish than we were on broadband over the coming years.

His main pick is the large cap, BRCM. We´re more inclined to small-caps, but it is interesting to see how large cap investors are playing a similar trend.

Note: We´ve got a few more small-cap broadband picks, we´ve been watching, but regrettably we have yet to pull the trigger because we´re waiting for the earnings reports to come in. Hopefully, this recent correction over the last few days will provide some decent buying opportunities. One sector we really like is fiber optics. If you remember the last boom, fiber optics stocks went completely wild. We expect the same will happen again this time around in Broadband Bubble Part 2. Interestingly, the stocks are finally breaking out to new highs following years of being in the dumps (e.g., JDSU, the mega fiber-optic stock is hitting new highs, but is still down from over a $100 from the last boom). There are a host of small cap names that can double or triple as money moves into this sector. The risk in these stocks is pretty low since most have very clean balance sheets, lean corporate structures (what else can you expect after a five year industry downturn), and improving cash-flow. Stay tuned.

Comments

[SCA]

I like your bullish outlook on Broadband and fiber optics. I recently purchased some IXP - a Global Telecom ETF.
I would prefer to capitalize on the movement of individual stocks in the broadband and fiber optics sector.
I noticed the mention of BRCM on the blog that you referred to... do you have a similar pick in the small cap "value" sector?
Let's not miss the ride up... it is surely on the way...

YF - When do you expect to post a pick in this sector?

Thanks, (and thanks for the guidance on IIP!!),

-SCA