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Published: August 13, 2009
Today you have a rare
“second chance” at making a fortune.
Let me explain…
From 1990 to 2004 the number of internet users in the US
absolutely exploded — going from less than 1% of the population
back in 1990 all the way up to over 65% in 2004.
Check out the US’s hyper Internet growth chart below:
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And, as you know by now,
the rapid increase in Internet usage spawned enormous growth in
computer and internet-related companies. Microsoft went up
9,750%. Yahoo jumped a whopping 7,763% in just three and a half
years. And AOL, the grand daddy of them all, went up 73,050%from
its 1992 IPO to its peak at the end of 1999.
The trick was to identify the growth early. And to get out
before the bubble burst.
Well today we’ve got a rare second chance to “turn back time.”
As investors and traders, it’s rare that we get any second
chances. But when you’re presented with one, you’d be a fool not
to jump on for the ride.
But rather than betting on the US internet usage though, we’ll
be exploiting the next a hyper growth industry that’s still in
it’s infancy – emerging market telecoms.
According to the latest from the talking heads in mainstream
finance, the world’s combined GDP is expected to grow at a 2–3%
pace over the next several years. But emerging telecoms is
anticipated to grow upwards of 45% by 2013.
Just 10 years ago, 86 million people around the world had a cell
phone. Today, that number is more than 3.4 billion. That’s as if
Ethiopia’s population grew to those of China, India, the U.S.
and all of Western Europe combined.
With the ever-growing global economy, and the advent of the
smartphone, the future for mobile phone sales looks bright.
Smartphones, such as the iPhone and BlackBerry, have caused
quite a stir around the world — even in countries historically
ahead on mobile phone innovations. Smartphone sales are expected
to triple in the next four years, bringing the number of
worldwide users to 1.1 billion by 2013.
Along with cell phones, an exceedingly large number of emerging
market Internet users are expected to come online in the next
four years.
According to a Forrester Research report, the number of Internet
users in 2013 will be 2.2 billion, or 45% more than the end of
last year.
These two growth categories – mobile phones and Internet access
– are both led by emerging economies. As you can see on this
map, the number of Internet users in Asia should grow 377.5
million, or a whopping 67.4% in just four years!
This report also found that 52% more Latin Americans will be
online in 2013, and the number of African users should double in
this period.
The best way for penny stock investors to play this trend will
be through ETF’s.
Each ETF investment will let you own hundreds of these tiny –
and sometimes even privately owned – emerging market telecoms.
And they’re as easy as buying a stock on the NYSE…
For a list of emerging telecom ETFs, simply go to
www.morningstar.com and use the ETF screener.
Although the search will return quite a few, SPDF S&P
International Telcommunications Sector (NYSE: IST) and
WisdomTree’s International Communications (NYSE: DGG) are
two of my favorites.
Both of these will allow you to play the fastest-growing
industry in the world, as well as help you diversify your
portfolio.
Remember, we rarely get a second chance at making a fortune. I
suggest you jump on this one immediately.
Sincerely,
-- Jim Nelson
Managing Editor
Penny Sleuth
Editor's Note: This
article originally appeared in
Penny Sleuth.
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