Why Apple’s Dirt-Cheap At $490 A Share

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“The company is already quietly moving in this direction by acquiring smaller firms with patents on top-of-the line technology that could help make ‘iCash’ real.

“Remember, Apple has a history of transforming technology into something you can use every day. And I think the company has the best shot of creating the ‘It’ product when it comes to mobile payments.”

While Andy’s prediction might sound a bit far-fetched, mobile payments are already gaining in popularity. According to market research firm Gartner, people use their cellphones to buy more than $171 billion worth of goods every year. That number is expected to increase about 250% by 2016.

If history is any guide, these mobile-based transactions are just child’s play compared to what we’ll be doing in the years ahead. With Apple’s stronghold in the smartphone market and nearly $43 billion of cash on its balance sheet, it is without a doubt one of the best positioned companies to take advantage of this growing trend.

This Tiny Stock Gained 60% In 14 Months
But while Apple is likely to be a winner if (and when) mobile payments become the norm, Andy believes the real money will be made investing in the companies needed to make this technology mainstream.

One such company is NXP Semiconductors NV (NASDAQ:NXPI), a global leader in the field of computer chips that help devices identify and communicate with each other. It’s a technology known as near-field communications, which enables any two devices that are near each other to talk to one another.

Andy brought NXP to the attention of his Game-Changing Stocks subscribers in July 2012. Since his recommendation, the stock has surged more than 60%.

So far, near-field chips have been a booming business for NXP, growing 19% in 2011 and 41% in 2012, and is on track to grow 30% this year (to $1.26 billion), according to analysts at Merrill Lynch. These ID chips made up just 16% of NXP’s $4 billion revenue base in 2011 but are expected to account for 35% of sales by 2015.

If Andy’s prediction comes true and mobile payments keep growing at triple-digit rates, NXP could double its profits in a few short years — and the stock could keep soaring.

P.S. Only time will tell if Andy’s prediction comes true or not, but given his track record for predicting “game-changing” events — especially when it comes to Apple — I wouldn’t bet against him. In 2012, when Apple was at $720, Andy predicted its “fall from the market’s grace.” Shortly after, shares fell 39%. To learn more about Andy’s latest Apple prediction, or to see the rest of his “shocking” forecasts for the coming year, follow this link.

– Austin Hatley

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