NEW YORK (Real Money) -- You want to know why this business of picking winning stocks can be so hard? One of the principal reasons may be because people are so darned cynical about anything, even when the positives are downright self-evident.
Take AOL (AOL). Last week it reported one of those quarters that showed you that all of the hard work of CEO Tim Armstrong was paying off. The company has reinvented itself, going from a profitless dial-up online concern to a profitable company with terrific properties, including the Huffington Post, as well as one of the best search systems on the web and a fabulous advertising technology that works fabulously with video.
I am always looking for companies that are developing products that work as well or better on cellphones than they do on desktops. That's why I remain devoted to Facebook (FB), which is much better on the cellphone than on the desktop. It is why I think that Twitter (TWTR) can, one day, be monetized, if it could only figure out a way to charge for all of the promotion that individuals and companies get pretty much gratis. It's why I believe that Yelp (YELP) will ultimately be acquired by someone because the mobile app is so useful.
And it is why I had such high hopes for AOL after this quarter when I saw how mobile was truly taking off for the company, including mobile video. Gone were any of the losses from Patch, the excellent but sadly profitless local online journal. Instead, you saw some nascent signs that the company was truly back on the growth path with excellent cash generation.