This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

How to Invest in the Next Game-Changer in Smartphones

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

By Andy Obermueller

Intelligence always moves to the edge of the network.

That wasn't always true of the communications business. The only thing "smart" at either end of this network might be one of the callers, and that certainly varied. Phones used to be nothing more than a speaker, a microphone and set of buttons that sent audible tones the system could recognize as numbers.
Mobile payment means every merchant's checkout device you see needs to be replaced, and Verifone, as the the leading provider of hardware for electronic payment processing, stands to benefit.

That has changed.

The infrastructure of the nation's communications system is still home to some impressive technology, but the real genius is at the edge of the network -- that is, the tablet devices and computers we use to process information and in the smartphones we use to communicate.

After all, the smartphones we all have in our purses or pockets contain more capability than the computers NASA had at its disposal when Neil Armstrong was walking on the moon.

The single most important change this network will undergo in the coming years is right at the edge: the integration of electronic commerce functionality into our smartphones.

I write extensively about this in my newsletter, Game-Changing Stocks. Simply put, I think it's the Next Big Thing.

So far, I've been telling my readers about the consumer side of the market. But what we really need to look at is the company merchants rely on for the state-of-the-art equipment that will allow for seamless smartphone transactions to take place.

That company is Verifone (PAY - Get Report).

It's the leading provider of hardware for electronic payment processing. And here's the thing: Nearly every one of the devices that you see on the merchant's counter will need to be replaced.

There are two reasons. The first: Customers will be paying with highly secure near-field communication chips instead of handing over their credit or debit cards. But the other trend that's going on at the same time is the mass unplugging of retail point-of-sale terminals.

Well, "unplugging" might be the wrong word. The enterprise system is still there, but increasingly running in the background. The sales clerk is just as likely to process the transaction with a portable device as to ask the customer to walk back to the cash register.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PAY $27.31 0.00%
AAPL $94.19 0.00%
FB $118.06 0.00%
GOOG $695.70 0.00%
TSLA $222.56 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs