Paper Chase: Exciting Growth Opportunities in STEM and Wireless
Time to invest in STEM?
February’s employment report was weaker than expected at 113,000 jobs created. The unemployment rate fell to 6.6%, but lack of labor force participation contributed in part to that. As we have repeatedly noted in the Paper Chase, bad weather is obviously factoring into these numbers.
Weather
It’s important to look at the labor report in context. The survey occurred during the mildest week of weather that month. Note the big increase in construction the week of the report, which corresponded with a reprieve from the terrible weather. Gains in manufacturing occurred while hours worked were down. The leisure and hospitality sectors saw gains, but the service sector saw losses. When the weather is bad, people stay home.
Correction
Going into 2014, if you were to align the economy against the S&P 500, there was certainly a valuation gap indicating an overvalued economy. The hope is that a growing economy will allow earnings and revenues to catch up to current expectations. Disappointment in the overall outlook (mainly due to emerging markets) caused stocks to temporarily fall.
The Fed
The Fed is essentially on autopilot as deficit reduction is occurring. They are reducing the large quantity of treasuries they’ve been purchasing.
What I’m Doing
I still see buying opportunities everywhere, particularly with the emerging market selloff occurring with anything related to Turkey, India, Indonesia, South Africa or Brazil. Stocks are still the best value. International developed names are 15-20% discounted now, especially if you hedge the currencies back to the dollar. The currency decline of Turkey will actually allow them to put themselves on sale to the highest bidder, make the necessary corrections in their structural economy, and put themselves on the road to recovery.
Bonds
The Paper Chase has thus far been all about equities with very little focus on fixed income. What I find curious is that while bond yields should rise due to a drop in bond prices (because of an expected rise in interest rates), the yields are actually down due to disappointment in a lack of growth in revenues and earnings. The rise in bond prices and thus a fall in yields is an indicator of investors moving from risky to less risky assets. That being said, the fair value of the 10 year is probably closer to 3.5%.
Wireless
Wireless products and services are a $15.5 billion industry. There are 326.4 million wireless subscriber connections. There is a 102.2% wireless penetration; meaning many people now own more than one phone. 38.2% of households are wireless-only.
It’s not partisan or controversial to say there has only been slight growth in the economy over the past decade, and the markets are responding to actions of the Federal Reserve. A lack of private sector investment has led to less hiring. The mobile phone sector has been no different from the rest of the market.
91% of Americans own a cellphone, meaning the market is essentially saturated. This has resulted in price reductions across the board. Sprint’s acquisition of T-Mobile would be a game changer if it can get by regulators. The Department of Justice has seemed to show that four national competitors is about the right number in scrutinizing these types of deals.
Competition
All providers are competing on price, service and network capability. Under the older pricing and distribution models, the phones were heavily subsidized and consumers had to pay for service. Now, given the choice, consumers have chosen to pay more for the phone in exchange for a lower price in service.
The Future
The smart phone era is maturing. People are adding tablets where there is space, and we are just beginning to enter the world of wirelessly connected devices. This means there are still growth opportunities in the U.S. and overseas.
STEM
Developing STEM (science, technology, engineering and math) graduates are now becoming a joint venture between higher education and business. Many businesses need certain skill sets that students don’t have coming out of college. AT&T is partnering with Georgia Tech in developing a Masters in Computer Science using technology that will lower costs of a $40,000 degree to about $6,700.
Disclaimer: Killing The Breeze is not a registered investment advisor or advisory service. It does not tell or suggest which securities or currencies should be bought or sold. The employees or affiliates of Killing The Breeze may hold positions in the stocks, currencies or industries discussed here. There is a very high degree of risk involved in the market. Killing The Breeze assumes no responsibility or liability for any trading or investment results. All content posted is for educational purposes only and independent advice should be sought from a professional to confirm validity and accuracy of any claim made.
The information should only be a starting point for doing additional independent research in order to allow you to form your own opinion regarding trading decisions. You should ask the firm with which you deal about the terms and conditions of the specific securities which you are trading and associated obligations. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
85 Responses
Cut the Rope
[…]Sites of interest we have a link to[…]
CHECK IT OUT
[…]Every once in a even though we choose blogs that we read. Listed below are the latest websites that we choose […]
canadian game developer
[…]Every as soon as inside a when we opt for blogs that we read. Listed beneath are the most recent web pages that we opt for […]
here
[…]although web-sites we backlink to beneath are considerably not related to ours, we really feel they may be essentially worth a go as a result of, so possess a look[…]
výkup herních konzolí
[…]although sites we backlink to beneath are considerably not associated to ours, we really feel they’re basically really worth a go through, so have a look[…]
Pizza21st Century
[…]always a significant fan of linking to bloggers that I adore but do not get quite a bit of link adore from[…]
film semi 360p
[…]Here is a good Weblog You may Find Fascinating that we Encourage You[…]
streaming film semi sub indo
[…]here are some hyperlinks to internet sites that we link to due to the fact we believe they’re really worth visiting[…]
streaming film semi
[…]The info talked about inside the write-up are a few of the best offered […]
Car Show Gila Bend, Arizona
[…]we like to honor many other net web-sites on the internet, even though they aren?t linked to us, by linking to them. Beneath are some webpages worth checking out[…]
Title
[…]the time to read or visit the material or web sites we’ve linked to below the[…]
indocinema xxi
[…]always a massive fan of linking to bloggers that I love but don?t get quite a bit of link love from[…]
Title
[…]below you’ll uncover the link to some sites that we think it is best to visit[…]
Title
[…]The info talked about in the report are a number of the very best obtainable […]
atualidades
[…]we like to honor a lot of other world-wide-web websites on the internet, even when they aren?t linked to us, by linking to them. Beneath are some webpages worth checking out[…]
concursos para farmac?uticos
[…]Every after in a though we choose blogs that we study. Listed beneath are the most recent internet sites that we choose […]
farmacia
[…]one of our visitors lately proposed the following website[…]
investice
[…]one of our visitors a short while ago advised the following website[…]
musik kirchliche trauung
[…]Wonderful story, reckoned we could combine a couple of unrelated information, nevertheless actually worth taking a appear, whoa did a single discover about Mid East has got extra problerms as well […]
Title
[…]Here are a few of the sites we advise for our visitors[…]
suche band für hochzeit
[…]Here is an excellent Weblog You might Come across Intriguing that we Encourage You[…]
musik für die trauung
[…]please go to the websites we follow, which includes this one, because it represents our picks in the web[…]
band hochzeit
[…]below you will discover the link to some internet sites that we believe it is best to visit[…]
mom blog target post
[…]below you?ll discover the link to some websites that we consider it is best to visit[…]
a to z style guide
[…]below you will uncover the link to some web pages that we think you should visit[…]
white stylish tops for women
[…]very couple of web sites that come about to be comprehensive beneath, from our point of view are undoubtedly properly really worth checking out[…]
free Microsoft points Xbox one
[…]we prefer to honor a lot of other world-wide-web web-sites on the web, even if they aren?t linked to us, by linking to them. Under are some webpages really worth checking out[…]
Erectile Dysfunction
[…]check beneath, are some completely unrelated web-sites to ours, however, they are most trustworthy sources that we use[…]
adam and eve pocket pussy
[…]one of our visitors lately encouraged the following website[…]
best selling sex toys
[…]very few websites that take place to become in depth below, from our point of view are undoubtedly nicely worth checking out[…]
prostate toys
[…]always a large fan of linking to bloggers that I love but do not get quite a bit of link love from[…]
best rabbit vibrator
[…]we prefer to honor a lot of other web web sites on the web, even when they aren?t linked to us, by linking to them. Beneath are some webpages really worth checking out[…]
how to massage clitoris before sex
[…]we came across a cool web page that you simply might love. Take a appear if you want[…]
Fuel Safety
[…]always a huge fan of linking to bloggers that I enjoy but really don’t get a good deal of link enjoy from[…]
Hookah delivery
[…]we like to honor many other web internet sites around the internet, even if they aren?t linked to us, by linking to them. Under are some webpages worth checking out[…]
head honcho masturbator
[…]the time to read or pay a visit to the subject material or internet sites we have linked to below the[…]
vibrating anal plug
[…]just beneath, are various totally not associated web sites to ours, nonetheless, they’re certainly worth going over[…]
Nairaland
[…]we came across a cool web site that you could possibly get pleasure from. Take a appear for those who want[…]
Title
[…]The details talked about inside the article are a few of the most effective offered […]
we buy any house falls church va
[…]although websites we backlink to beneath are considerably not connected to ours, we really feel they are really worth a go via, so possess a look[…]
Title
[…]check beneath, are some entirely unrelated web sites to ours, on the other hand, they’re most trustworthy sources that we use[…]
Microsoft dynamics careers
[…]one of our guests not too long ago recommended the following website[…]
Microsoft recruitment
[…]although sites we backlink to below are considerably not associated to ours, we feel they’re really worth a go via, so possess a look[…]
gold ira
[…]one of our visitors not too long ago suggested the following website[…]
Housecleaning Dallas
[…]please take a look at the web sites we adhere to, including this a single, as it represents our picks through the web[…]
Title
[…]Sites of interest we have a link to[…]
tongue drum
[…]we came across a cool web page that you may love. Take a search in case you want[…]
original gift
[…]Every as soon as in a even though we opt for blogs that we study. Listed below are the most up-to-date websites that we opt for […]
apex locator with gyroscope
[…]very couple of internet sites that come about to become detailed beneath, from our point of view are undoubtedly well worth checking out[…]
scaling tips satelec
[…]Here is a superb Blog You might Locate Interesting that we Encourage You[…]
Leather Jackets
[…]very handful of web sites that take place to become detailed beneath, from our point of view are undoubtedly nicely really worth checking out[…]
UK Fly Fishing Flies
[…]although websites we backlink to beneath are considerably not associated to ours, we really feel they’re basically really worth a go as a result of, so have a look[…]
money
[…]Wonderful story, reckoned we could combine several unrelated data, nevertheless actually really worth taking a appear, whoa did a single discover about Mid East has got extra problerms too […]
why getting rich too quickly can be bad
[…]Wonderful story, reckoned we could combine some unrelated information, nonetheless definitely worth taking a look, whoa did 1 master about Mid East has got a lot more problerms as well […]
Best Ben Wa Balls
[…]Every once inside a although we pick out blogs that we read. Listed below are the newest sites that we pick out […]
best wall dildo
[…]below you will come across the link to some web sites that we feel you’ll want to visit[…]
how to use a double ended dildo
[…]check beneath, are some entirely unrelated web sites to ours, nevertheless, they are most trustworthy sources that we use[…]
architectural rendering service
[…]although websites we backlink to beneath are considerably not associated to ours, we really feel they’re basically worth a go by way of, so possess a look[…]
architectural visualization company
[…]check below, are some entirely unrelated web-sites to ours, on the other hand, they’re most trustworthy sources that we use[…]
Units
[…]below you?ll locate the link to some websites that we consider you must visit[…]
drama news
[…]The information talked about inside the report are some of the most beneficial accessible […]
Microunit
[…]usually posts some quite exciting stuff like this. If you?re new to this site[…]
Compound
[…]usually posts some incredibly intriguing stuff like this. If you are new to this site[…]
Jobs In Sunabeda
[…]very handful of internet websites that occur to become in depth below, from our point of view are undoubtedly very well worth checking out[…]
Property
[…]although internet websites we backlink to beneath are considerably not related to ours, we feel they may be actually worth a go by means of, so have a look[…]
Jobs In Puna
[…]please stop by the internet sites we follow, such as this one particular, as it represents our picks from the web[…]
Jobs In Chennai
[…]Here is a great Blog You may Uncover Interesting that we Encourage You[…]
Jobs In Vidisha
[…]Sites of interest we have a link to[…]
Fossil watches
[…]Here is a great Weblog You might Locate Interesting that we Encourage You[…]
Mens necklaces
[…]Here are a few of the web sites we advocate for our visitors[…]
professional name tags
[…]one of our visitors a short while ago proposed the following website[…]
ID BADGES
[…]Here is a good Weblog You may Find Intriguing that we Encourage You[…]
boom beach download
[…]the time to study or check out the content or web-sites we have linked to below the[…]
Title
[…]we came across a cool site that you simply could delight in. Take a appear in the event you want[…]
boom beach pc
[…]Here are some of the web-sites we advocate for our visitors[…]
personal trainer leicester
[…]usually posts some quite intriguing stuff like this. If you?re new to this site[…]
Psychoanalytische Therapie
[…]check beneath, are some totally unrelated websites to ours, having said that, they are most trustworthy sources that we use[…]
short cowgirl boots
[…]Wonderful story, reckoned we could combine a handful of unrelated data, nonetheless truly worth taking a look, whoa did 1 find out about Mid East has got extra problerms also […]
infant cowboy boots
[…]here are some hyperlinks to web sites that we link to for the reason that we believe they may be worth visiting[…]
Auto Repair Dallas
[…]usually posts some really fascinating stuff like this. If you?re new to this site[…]
VascuWave
[…]below you?ll locate the link to some sites that we believe you must visit[…]
VascuWave
[…]here are some links to internet sites that we link to since we think they may be really worth visiting[…]
VascuWave
[…]always a big fan of linking to bloggers that I love but don?t get quite a bit of link love from[…]
VascuWave
[…]we like to honor several other online internet sites on the internet, even if they aren?t linked to us, by linking to them. Under are some webpages really worth checking out[…]
zero space technology massage chair
[…]Every after inside a although we select blogs that we study. Listed below are the most recent web-sites that we select […]