Double Your Money by Year s End with the Company Comcast, Verizon and Cisco Can t Do Without

Size: px

Start display at page:

Download "Double Your Money by Year s End with the Company Comcast, Verizon and Cisco Can t Do Without"

Sydney Cameron
8 years ago
Views:

1 Chris Versace s SPECIAL REPORT Double Your Money by Year s End with the Company Comcast, Verizon and Cisco Can t Do Without

2 IMPORTANT NOTE: This special report is for informational and educational purposes only, based on current data as of July Do not buy or sell these investments until you have read the latest publication from Chris Versace. Double Your Money by Year s End with the Company Comcast, Verizon and Cisco Can t Do Without Copyright 2013, by Chris Versace. All rights reserved. No quotes or copying permitted without written consent. Published by: Eagle Publishing, Inc. One Massachusetts Ave. NW Washington, DC / customerservice@chrisversace.com Website:

Double Your Money by Year s End with the Company Comcast, Verizon and Cisco Can t Do Without Copyright 2013, by Chris Versace. All rights reserved.

3 Double Your Money by Year s End with the Company Comcast, Verizon and Cisco Can t Do Without Dear Investor, Introduction As this company s business expands rapidly throughout India and China, its growth will be too big for its customers to ignore. When these customers include companies like Comcast, Cisco, Intel and Verizon, a takeover may be in the works. The stage is set for you to profit enormously from the widespread use of this company s irreplaceable semiconductor chips in both foreign and domestic markets when one of these famous companies might acquire this expanding business for a multiple of its market value. That s why I m bringing you this massive profit opportunity today in this special report: Double Your Money by Year s End with the Company Comcast, Verizon and Cisco Can t Do Without by investment professional Chris Versace. He s spent almost 20 years finding profits for his investors with his tactic of following PowerTrends. In his report, you ll find: Why Chris Versace is so confident that the semiconductor market will continue to rise Recent design wins by this company The candidates for a massively profitable takeover of Entropic And much, much, more So let s get started. Roger Michalski V.P./ Group Publisher, Eagle Financial Publications

The stage is set for you to profit enormously from the widespread use of this company s irreplaceable semiconductor chips in both foreign and domestic markets when one of these famous companies might

4 PowerTrend: Always On, Always Connected Stock: Entropic (ENTR) Putting the connected home under the microscope and looking for the next emerging company in the connected home has turned up Entropic (ENTR). Entropic is a semiconductor company whose semiconductors and software are housed inside devices we use every day. The company s devices are the set-top boxes, wireless routers and other electronic devices that enable the delivery of multiple streams of high definition (HD) video and other multimedia/entertainment content into and throughout your home. If you re like me, you use your at-home Wi-Fi or broadband each and every day, as well as that gateway to your TV-video programming, the set-top box, to access sports, news, the stock market or a rented movie. You probably have Entropic chips in your house and don t even realize it. I make that statement because Entropic s customers are the who s who in home networking, cable set-top boxes and so on. The company s customer list includes Cisco (CSCO), Motorola (MSI), Samsung (SSNLF), Wistron (3231:TT) and others for deployment by leading service providers such as DIRECTV (DTV), DISH Network (DISH), Comcast (CMCSA), Time Warner Cable (TWC), Cox Enterprises and Verizon (VZ). Outside of the United States, Entropic counts Oriental Cable Network (OCN) and Topway Video Communication Co. in China as customers, as well as InCablenet, India s leading cable operator. This InCablenet relationship can be an enormous windfall for investors due to India s Analog Sunset Plan. Analog Sunset is the name of a mandate from India s Version of the FCC requiring every television in the country to switch from analog to digital by December Initially, this switch will affect 8.5 million customers. Later, though, every one of India s 130 million customers will need to switch as well. Last year, those customers spent billions of dollars on their networks, and they are poised to do so again in They re all looking to expand their offering to capitalize on many aspects of the Always On, Always Connected consumer by enabling Internet connectivity, Apps, HD video and HD calling on a wide array of devices in the home. That focus means great things for Entropic, because its semiconductors are in the gateway devices that make all of that advanced video possible.

The company s devices are the set-top boxes, wireless routers and other electronic devices that enable the delivery of multiple streams of high definition (HD) video and other

5 The Rising Semiconductor Market That s great on its own, but it gets even better, because Entropic is the only pure-play platform semiconductor company in connected home entertainment. The company boasts more than 2,000 patents. And in recent months, Entropic has had numerous design wins that include wins with Eris, Cisco, Humax, Motorola, Pace, Technicolor and TiVo for consumer electronics devices that will be deployed worldwide, including Tier 1 operators in the Americas such as Comcast, Time Warner Cable and DIRECTV. The industry leader, Comcast, shared that it continues to invest in network infrastructure to ensure product leadership in video and high-speed Internet, as well as the expansion of new services that generate attractive returns like business services and XFINITY Home. Two important design wins occurred in the second quarter of 2013, when Entropic secured design wins with Jiangsue Yinhe Electronics Co. and Shenzen Coship Electronics Co. In the first quarter of 2013, Entropic secured a contract to provide connectivity to Comcast s IP-based X13-H. As goes Comcast, so goes the rest of the cable industry, and that news is great for Entropic in the coming quarters. These designs wins, along with many others, made the second quarter of 2013 the low point of the year for Entropic s revenues. As you can see in the graph below, Entropic s price fell dramatically from January through the end of March and then began rising again in the second quarter. In fact, consensus analyst estimates project revenue of 217% in second half of the year alone. Longer term, data from networking firm Cisco points to continued growth in residential connectivity during the next few years, and that forecast further cements Entropic in the pole position.

And in recent months, Entropic has had numerous design wins that include wins with Eris, Cisco, Humax, Motorola, Pace, Technicolor and TiVo for consumer electronics devices that will be deployed

6 Specifically, Cisco projects that global voice over IP (VoIP) will be the fastest-growing residential Internet service, with 560 million users in 2011 increasing to 928 million users in Cisco also projects that digital TV will be the fastest-growing global television service, with 694 million subscribers in 2011 increasing to 1.3 billion subscribers in As the preceding Cisco forecast indicates, prospects look bright for the next few years. No wonder insiders and officers started buying shares en masse beginning in February. More recently, in May, no fewer than 9 directors or company owners exercised options or bought shares outright to increase their ownership stake. They combined to buy 168,000 shares during the previous three months. These insiders include Chief Financial Officer David Lyle, Senior Vice President Lance W. Bridges and Director Keith Bechard. They are aware of the potential for a takeover and want in on the profits. A Huge Profit Opportunity Now, I rarely make wildcard predictions, but I am willing to do that with Entropic because of its position as the only pure-play platform semiconductor company in connected home entertainment. This, along with Entropic s saturation of the market, makes the company one of the most attractive takeover targets I ve come across in the my twenty years in the business. Potential buyers include Intel (INTC), Qualcomm (QCOM) and several others, including Apple (AAPL). Any of those companies easily could swallow Entropic and pay a multiple of its current market cap without even blinking. For companies like Apple, Intel or Qualcomm, paying a huge premium would still be more cost-effective than trying to match the company s technological lead and market penetration. And when the takeover deal does go down, shareholders will make a bundle. Now, combine all of this with the facts that Entropic s current share price is less than $5 and the company is valued at slightly more than $400 million, and you have an extremely cheap takeover target. So attractive, in fact, that it s not a question of if the company will be bought out, but a question of when. In a word, soon. Probably within the next few months, if not weeks. And when that happens, the share price will double almost overnight. And from there, it wouldn t surprise me to see those shares go on a profit run pronto -- perhaps hitting $20 each by year s end!

As the preceding Cisco forecast indicates, prospects look bright for the next few years. No wonder insiders and officers started buying shares en masse beginning in February.

7 Conclusion: Entropic -- The One Company Comcast, Verizon, Cisco and You Can t Do Without When a small-cap company provides an irreplaceable component to nearly every bigname company in its industry when it s also positioned to maintain its leadership for months -- even years -- to come when it s tapping into the world s two largest emerging markets for its services and has hundreds of millions of users you want to invest in that company. And when you see company insiders loading up on shares like madmen, you definitely want to follow their lead. Especially when those shares are less than $5 each. That way, when the company s bought out, and the share price doubles almost overnight, you ll be along for the ride -- all of it! Buy ENTR shares at the market. As always, protect your capital by setting a stop loss 20% below the price you paid per share. Yours for growing profits with PowerTrends, Chris Versace Editor, PowerTrend Profits

of users you want to invest in that company. And when you see company insiders loading up on shares like madmen, you definitely want to follow their lead.

8 Eagle Publishing One Mass. Ave. NW Washington, DC / DYMCVC-0713

CCBN Cable Digital TV Operator International Summit. March 21, 2014 Beijing

CCBN Cable Digital TV Operator International Summit March 21, 2014 Beijing Rob Gelphman VP, Marketing and Member Relations robgelphman@mocalliance.org www.mocalliance.org The Connected Home Chinese Homes