Jim Cramer makes the case for why smartphones are “obliterating the old way of doing things.”
Currently, there are as many as 4 billion cell-phone users worldwide, but only 12 percent use smartphones. Given the superiority of the product and the aggressive pricing, I expect we will see a total replacement of dumb phones with smart ones rather quickly.
Long-term trends are where all of our relative strength models make their money. Smartphones, and Technology more broadly, may be the next major trend. They have certainly been among the best performers YTD and over the last 12 months. This will be an important trend to watch. YTD (1/1/09 - 8/17/09) performance of the stocks mentioned in Cramer’s article are listed in the table below:
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Disclosure: Dorsey Wright currently has positions in Palm, Cypress Semiconductor, Cree Research, and Apple in our managed products.
