JBL: The Giant and the Rock Can't Miss

Cell phone minutes are not the key future revenue growth for Vodafone. The future revenue growth is from peripherals attached to cell phone contracts. Peripherals such as data, Internet services and video -- where 3G is important -- are your high-margin future growth. 3G will become the prevalent technology, and Vodafone is in a great position with its 3G licenses.

Naysayers point out that customers might not pay a premium for 3G. But if you have ever used broadband once, odds are you never went back. It will be the same with 3G -- when customers realize how much quicker they can receive data they will be glad to pay for the upgrade.

With 165 million customers, Vodafone doesn't have to search for people to whom they can sell new services. They do just what the cell phone store did to me: add a few services here and a few there. Customers don't mind an extra $10 or $20 a month when they feel they are getting a great service out of it.

You bring people into the arena to see the giant, and you charge them for parking, popcorn, beer and hot dogs. It's a system that has always worked.

With more than $14.5 billion in free cash flow, and around $54 billion in cash and investments, this giant has extremely deep pockets. Vodafone is not a double bagger any time soon. However, with a 3% yield and growth opportunities, it is a great long-term holding.

I have owned Vodafone for some time and have recently added shares.

I have always liked giants.

The Rock

When Dwayne "the Rock" Johnson was a wrestler, he was great; since he became a movie star he has reached a new level in the entertainment hierarchy. Like the Rock, American Tower (AMT Quote) is a dependable star that is about to become a megastar.