It's every traveler's worst nightmare: You're lost. It's getting late. Do you whip out your atlas and trusty compass? Do you stop and ask a stranger for assistance? Thanks to NAVTEQ, those concerns are quickly becoming a thing of the past.
NAVTEQ provides the digital map data for websites (think MapQuest, Google, MSN, and Yahoo! Maps), in-vehicle navigation systems, and portable navigation devices. The company can provide basic street geometry and tell you when a lane will disappear or when the speed limit will change. It can re-route truckers around weight-restricted areas or low-clearance bridges. It can even predict traffic conditions and identify points of interest at each highway exit!
Demand for in-vehicle navigation systems and navigation-capable smart phones is growing quickly in Europe, but so far, the adoption rate has lagged in the United States. As lower-priced navigation devices hit the market in the near future, NAVTEQ stands to benefit from this trend.
The Business
Founded in 1985 in Silicon Valley, Calif., NAVTEQ began to collect data for large metropolitan city areas. In 1991, the company began to collect data in Europe; by 1996, it had expanded to Japan. Today, NAVTEQ's map database covers approximately 11 million miles of roadway worldwide and 15 million points of interest, such as airports, hotels, and restaurants. With its recent foray into India, NAVTEQ now provides map data for 69 countries and territories on six continents.
Led by CEO Judson Green, NAVTEQ is never content to rest on its laurels. In the next 12 months, the company plans to introduce a gaggle of new features. Green is especially excited about NAVTEQ's new city models, which will provide 3-D images of key landmarks in major cities across North America, Europe, and Asia by year-end.
Top Dog and First Mover
Despite the growing demand for digital map data, NAVTEQ has very little competition. Every major automobile manufacturer that offers a navigation system in Europe and North America uses the company's map database in one or more of its models.
NAVTEQ's global coverage and extremely detailed database have established high barriers to entry for this industry. The company's obsession with updating its data and adding new functionality ensures that NAVTEQ will retain its market leader position.
NAVTEQ Is a Textbook Rule Breaker
Which is one reason why stock analysts consistently call the stock overvalued. In July 2006, Deutsche Securities downgraded NAVTEQ. The following month, Jefferies followed suit. At that time, shares were trading in the high $20s -- down over 30% from David's original recommendation price!
David didn't panic -- in a special update and on the discussion boards, he urged Stock Advisor subscribers not to sell their NAVTEQ shares. I bet anyone who listened to David's advice is glad to have held on -- the company's shares are up over 150% from the lows of 2006.
Where to From Here?
NAVTEQ's digital map database helps travelers go anywhere, but lately, the stock price has gone in only one direction: straight up. The company's fortunes should only continue to improve as lower-priced in-vehicle and portable navigation devices hit the market in the coming years. With a solid business model, strong balance sheet, and dominant market position, NAVTEQ's run has only just begun. You see why this one is David Gardner's No. 1 pick.
05.09.2007. (11:15)
-
-
-
- - promjene spremljene- uredi komentar - obriši komentar - prijavi ovaj komentar kao spam - zabrani komentiranje autoru ovog komentara- učitavam...
Ray Dolby conceived the idea for a noise reduction system while meditating on an ashram in India. He was then a precocious graduate from Stanford with a Ph.D. in physics from Cambridge University, working for the Peace Corps. Little did he know that this one revolutionary idea would someday lead to the multi-billion dollar company called Dolby Laboratories (NYSE: DLB).
If you're not familiar with Dolby the company, you're certainly familiar with its technologies, even if you don't know that you are. The company develops complex tools to enhance all types of audio systems, including your CD and DVD players, your car stereo system, and theater and broadcast platforms.
So that Shrek DVD you played for your kids? Yep, Dolby-enhanced. Your new plush HDTV? You betcha; Dolby's in it. That latest summer blockbuster you paid $10 to see? Pretty much guaranteed that Dolby enhanced it.
Almost anything you can think of that plays audio harnesses Dolby's brain power.
Delivering on the Doubters
Founder and Chairman Ray Dolby brought his eponymous company public in February 2005. By the fall of 2006, the stock had slid from $24 to less than $20 as investors grew concerned about the company's slowing DVD technology sales. But the pessimism was misplaced.
Dolby is raking in gobs of cash from families spending more of their disposable income on in-house entertainment, and from our insatiable appetites for entertainment "on the go." Sales are growing more than 10% per year, while earnings are ticking up more than 20% per year on improving margins.
Analysts have continued to get this growth story wrong, but Tom Gardner has been way ahead of it.
More on the Numbers
Dolby will generate more than $400 million in sales this year by licensing its technology and selling products to electronic manufacturers, software firms, theatre chains, broadcast companies, and recording firms.
The company's balance sheet benefits from the light "knowledge-based" business model-it carries more than $500 million of cash and a negligible amount of debt.
Another important detail: Ray Dolby still maintains a majority stake in the company he built from the ground up. So as Dolby the company goes, so go Ray Dolby's fortunes.
Where to From Here?
Tom believes this company is perfectly positioned to benefit from more individuals and families spending more money on the highest quality entertainment possible. Whether it's through MP3 players, laptop computers, portable DVD players or car stereos, Dolby is working to get a piece of the action.
The audio entertainment market is growing worldwide. No wonder Tom expects the stock to double or triple over the next five years.
There you have it: Navteq and Dolby. The Motley Fools' 2 top picks. But we still have some unfinished business. We have to put a face to the Wall Street scourge.
05.09.2007. (11:15)
-
-
-
- - promjene spremljene- uredi komentar - obriši komentar - prijavi ovaj komentar kao spam - zabrani komentiranje autoru ovog komentara- učitavam...
Bundy
NAVTEQ [NYSE: NVT]
It's every traveler's worst nightmare: You're lost. It's getting late. Do you whip out your atlas and trusty compass? Do you stop and ask a stranger for assistance? Thanks to NAVTEQ, those concerns are quickly becoming a thing of the past.
NAVTEQ provides the digital map data for websites (think MapQuest, Google, MSN, and Yahoo! Maps), in-vehicle navigation systems, and portable navigation devices. The company can provide basic street geometry and tell you when a lane will disappear or when the speed limit will change. It can re-route truckers around weight-restricted areas or low-clearance bridges. It can even predict traffic conditions and identify points of interest at each highway exit!
Demand for in-vehicle navigation systems and navigation-capable smart phones is growing quickly in Europe, but so far, the adoption rate has lagged in the United States. As lower-priced navigation devices hit the market in the near future, NAVTEQ stands to benefit from this trend.
The Business
Founded in 1985 in Silicon Valley, Calif., NAVTEQ began to collect data for large metropolitan city areas. In 1991, the company began to collect data in Europe; by 1996, it had expanded to Japan. Today, NAVTEQ's map database covers approximately 11 million miles of roadway worldwide and 15 million points of interest, such as airports, hotels, and restaurants. With its recent foray into India, NAVTEQ now provides map data for 69 countries and territories on six continents.
Led by CEO Judson Green, NAVTEQ is never content to rest on its laurels. In the next 12 months, the company plans to introduce a gaggle of new features. Green is especially excited about NAVTEQ's new city models, which will provide 3-D images of key landmarks in major cities across North America, Europe, and Asia by year-end.
Top Dog and First Mover
Despite the growing demand for digital map data, NAVTEQ has very little competition. Every major automobile manufacturer that offers a navigation system in Europe and North America uses the company's map database in one or more of its models.
NAVTEQ's global coverage and extremely detailed database have established high barriers to entry for this industry. The company's obsession with updating its data and adding new functionality ensures that NAVTEQ will retain its market leader position.
NAVTEQ Is a Textbook Rule Breaker
Which is one reason why stock analysts consistently call the stock overvalued. In July 2006, Deutsche Securities downgraded NAVTEQ. The following month, Jefferies followed suit. At that time, shares were trading in the high $20s -- down over 30% from David's original recommendation price!
David didn't panic -- in a special update and on the discussion boards, he urged Stock Advisor subscribers not to sell their NAVTEQ shares. I bet anyone who listened to David's advice is glad to have held on -- the company's shares are up over 150% from the lows of 2006.
Where to From Here?
NAVTEQ's digital map database helps travelers go anywhere, but lately, the stock price has gone in only one direction: straight up. The company's fortunes should only continue to improve as lower-priced in-vehicle and portable navigation devices hit the market in the coming years. With a solid business model, strong balance sheet, and dominant market position, NAVTEQ's run has only just begun. You see why this one is David Gardner's No. 1 pick.
05.09.2007. (11:15) - - - - - promjene spremljene- uredi komentar - obriši komentar - prijavi ovaj komentar kao spam - zabrani komentiranje autoru ovog komentara- učitavam...
Bundy
Dolby Labratories -- A Wonderful Business
Ray Dolby conceived the idea for a noise reduction system while meditating on an ashram in India. He was then a precocious graduate from Stanford with a Ph.D. in physics from Cambridge University, working for the Peace Corps. Little did he know that this one revolutionary idea would someday lead to the multi-billion dollar company called Dolby Laboratories (NYSE: DLB).
If you're not familiar with Dolby the company, you're certainly familiar with its technologies, even if you don't know that you are. The company develops complex tools to enhance all types of audio systems, including your CD and DVD players, your car stereo system, and theater and broadcast platforms.
So that Shrek DVD you played for your kids? Yep, Dolby-enhanced. Your new plush HDTV? You betcha; Dolby's in it. That latest summer blockbuster you paid $10 to see? Pretty much guaranteed that Dolby enhanced it.
Almost anything you can think of that plays audio harnesses Dolby's brain power.
Delivering on the Doubters
Founder and Chairman Ray Dolby brought his eponymous company public in February 2005. By the fall of 2006, the stock had slid from $24 to less than $20 as investors grew concerned about the company's slowing DVD technology sales. But the pessimism was misplaced.
Dolby is raking in gobs of cash from families spending more of their disposable income on in-house entertainment, and from our insatiable appetites for entertainment "on the go." Sales are growing more than 10% per year, while earnings are ticking up more than 20% per year on improving margins.
Analysts have continued to get this growth story wrong, but Tom Gardner has been way ahead of it.
More on the Numbers
Dolby will generate more than $400 million in sales this year by licensing its technology and selling products to electronic manufacturers, software firms, theatre chains, broadcast companies, and recording firms.
The company's balance sheet benefits from the light "knowledge-based" business model-it carries more than $500 million of cash and a negligible amount of debt.
Another important detail: Ray Dolby still maintains a majority stake in the company he built from the ground up. So as Dolby the company goes, so go Ray Dolby's fortunes.
Where to From Here?
Tom believes this company is perfectly positioned to benefit from more individuals and families spending more money on the highest quality entertainment possible. Whether it's through MP3 players, laptop computers, portable DVD players or car stereos, Dolby is working to get a piece of the action.
The audio entertainment market is growing worldwide. No wonder Tom expects the stock to double or triple over the next five years.
There you have it: Navteq and Dolby. The Motley Fools' 2 top picks. But we still have some unfinished business. We have to put a face to the Wall Street scourge.
05.09.2007. (11:15) - - - - - promjene spremljene- uredi komentar - obriši komentar - prijavi ovaj komentar kao spam - zabrani komentiranje autoru ovog komentara- učitavam...
Bundy
Gornji komentari su "just for the record"...
05.09.2007. (11:16) - - - - - promjene spremljene- uredi komentar - obriši komentar - prijavi ovaj komentar kao spam - zabrani komentiranje autoru ovog komentara- učitavam...