All right. Now, let's talk about what I think is the largest, the largest, trend out there that we have to capitalize on. And that's 5G. Let's talk 5G. In our technology you need to get 5G to work so that it does everything it's supposed to do: dwarfs all the other Gs. There were many ways to play it. Now, we could have bought Skyworks. (SWKS) - Get Report Liam Griffin is terrific. That's one that's going to be good. Qorvo. (QRVO) - Get Report Texas Instruments, (TXN) - Get Report we got a slug of it. But we opted for Marvell. (MRVL) - Get Report
Talk about a stock that was dismissed by many as it stayed in the 16 to 18 wilderness for ages. I mean, I couldn't believe how much it was hated. And it was like Norton LIfeLock. (NLOK) - Get Report I mean, that one’s not going anywhere. And then we saw how it reconfigured itself to be a 5G play, almost purely some data center. And it went higher and higher and still higher until last week when it reported pretty much what it said it would report when it announced the Inphi acquisition. You know, when you report what you said when you preannounced, that's not good enough.
Now, I know people have had it with Marvell. They wanted us to tell them to sell. They wanted out. I said, wait a second, I think there's much, much more here. And you are getting out way too early, Let it churn for a bit. Maybe even get some of it below 40 if you don't own it already. But do not give up on Marvell. This is so early in the 5G game. A lot of upside.
All right. Elephant in the room? Crown Castle. (CCI) - Get Report It’s like a dud. Right? You're thinking that. This premier tower company, in a world that is desperate for more tower space, it acts like death. I know activist hedge fund Elliott Partners is in there. That would give us a 20-point pop immediately, that of ending an almost quixotic small cell initiative. I think it's right. I think that right now it looks like management has the upper hand and it will keep spending on the matter.
Given that Elliot tried to get AT&T (T) - Get Report to change its ways after taking a position, and then when that failed, the activist hedge fund blew out of the shares, I think people are thinking the same thing. They didn't win at Crown Castle, goodbye, and that's them selling. Look, I don't want that to happen. I don't think it will.
But here I think you aren't getting anything for the scarcity of towers and how lucrative and necessary they will be in the 5G era, especially if Dish DISH decides to tackle the incumbents. You need as much 5G exposure in this portfolio as you can stomach. So we're not going anywhere. I think we want to buy it. The bias is to get more. But if you're just joining the club, I think at these levels, start getting involved.
Finally, the most exciting 5G story out there is Apple. (AAPL) - Get Report And I think it has fallen from the radar screens because so many managers have newfound infatuation with the cyclicals and the small caps. … Now, you know what they always do? They come back to Apple.
I will say that the best 5G phone will be Apple’s and the replacement cycle will be the biggest ever. It will include all sorts of high-margin accoutrements like watches and these new earpods that sound so cool. And of course, the amazing service revenue stream.
But I think it's just going to keep growing and growing and growing way beyond where it is now until it crosses over to what I think will be the biggest source of the polarity of Apple's product and service revenue streams. And that would make it like the razor and blade Gillette (PG) - Get Report model.
Let's remember these Apple has lost billions in profits because of a strong dollar. And now we have a dollar at a 2½ year low. That will be huge when they announce their quarter. And Apple stands to gain the most from normalized relations with China. A better relationship between two countries means the China worry discount may be over.