JBL: Tech Champions

I believe the growth days of Apple are still ahead. I believe iPods still have a lot of space to download music and that the video iPod that is coming out with a bigger screen will totally change the way consumers view content.

Other companies changing the way we communicate are cell-phone content providers. I just bought VeriSign (VRSN Quote - Cramer on VRSN - Stock Picks) because of its recent acquisition of MQube.

VeriSign was in a bidding war for MQube. Investors, however, should have seen the obvious that VeriSign was going to win. VeriSign has more than $800 million in cash with no debt. It only makes sense that the best thing to do with that cash was to make an acquisition.

MQube is the market leader in premium messaging and content services that have a reach of 200 million wireless subscribers in North America. MQube was acquired for $250 million and brings with it $84 million in annual revenue.

VeriSign is forcast to increase earnings at 15% per year for the foreseeable future. However, I believe these estimates are low. We are starting to see a trend in which consumers are using their phones as their communication, media center and news life line. I believe the future will see phones replace the PC, to a degree.

VeriSign has gross margins above 68% and operating cash flow of over $500 million. With VeriSign's stock price down over 25% off its 52-week high, I believe this is a great buying opportunity.

VeriSign and Apple are investments in what the future holds for technology. While you can put estimates on earnings, but estimates on innovation are next to impossible. I believe both stocks are great technology core holdings.

Remember, being poor is bad, staying that way is stupid.

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