IBM's Graphene Chips to Offer Tasty Rewards?
Kyle is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
IBM (NYSE: IBM), mentioned 2/1/12 around $192 per share, currently trading around $196 a share (intraday, 2/27/12 – “Slow and Steady Versus Fast and Heady”). I do not currently own IBM, but I am considering initiating a long position with the company, accumulating shares over an extended period of time, which is how those of us without immense amounts of capital roll.
3D Systems (NYSE: DDD), mentioned 2/9/12 around $20.57 per share, currently trading around $24 a share (intraday, 2/27/12).
Last year IBM researchers built the first graphene-based transistor, capable of operating at 100 GHz (100 billion cycles per second). Now the same collection of lab coats has moved on and built the first integrated circuit based on the material which could produce graphene wafers instead of silicon. The circuit could possibly provide wireless devices much greater range, ultimately leading to a higher frequency technology capable of X-ray images without the harmful effects or requiring cumbersome iron cloaks. The wafers are roughly the size of a grain of salt and could improve the signals for cell phones, potentially allowing them the ability to function in the most remote locations, giving anyone locked in a two-year contract much joy. Not only is graphene wonderful with electrical conductivity, it could force a name change in Silicon Valley, but the prospect could be years away. Keep an eye on developments.
Just another thing that IBM offers that some companies don’t or aren’t capable of producing in the same magnitude. IBM always has one eye focused intensely on the future, and the other eye fixed carefully on their business. While this doesn’t make for the best yearbook photos, at least this chameleon of technology isn’t depending on past successes to keep them moving ahead.
Much the same with 3D Systems taking printers and printing to previously unforeseen dimensions, these companies are not only beating prior year’s performance on the balance sheet (3D reported a 17% increase from last year’s earnings), they are beating their previous developments, consistently offering innovative technologies to improve the performance of the companies that utilize their products.
Now since I have given up talking about Apple for Lent (much to the delight of the Microsoft Message Board Mafia), and some of you home traders may look at that delicious fruit as somewhat pricey for your tastes, there are a good number of companies that do not rest on their laurels and continue to innovate, rather than provide ongoing opportunities for Malware developers. And they won’t cost you $500 for a single share. You don’t have to corral all of your hard-earned money and put it in a single technology basket with one purchase. Everyone offers reasons for bad market days, oftentimes because someone utters the words “Europe”, “inflation”, “recession”, or “Occupy Wall Street”. Mr. Market can get his feelings hurt from time to time, providing excellent opportunities to start a rewarding investment plan. Investors can start accumulating dejected share prices along the way, until potentially shaking off the negative sentiment just in time for a better-than-expected earnings call a year or two (or ten) down the road. Several companies offer the chance for healthy returns and these two are worthy of some homework.
Motley Fool newsletter services recommend 3D Systems. The Motley Fool owns shares of 3D Systems and International Business Machines. kmet312 has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.