How to Profit from "the Death of Cash"
The Wall Street Crowd is starting to get the picture.
On the cover of the most recent issue of Fortune magazine: "The Death of Cash," an article examining an impending transition that I've been telling you about for some time.
The article examines some large companies as the drivers in this new technological push, which hinges largely on the continued adoption of portable devices that can be used to complete financial transactions. Its winners are Google (Nasdaq: GOOG) -- because of its Google Wallet initiative, which I was among the first to cover, eBay's (Nasdaq: EBAY) PayPal, Visa (Nasdaq: V), MasterCard (NYSE:MA), Apple (Nasdaq: AAPL) and Facebook (Nasdaq: FB).
Those are great companies that will lead the trend. But while everyone else is looking at the obvious "winners," it will take some time for this macro-trend to move the needle for companies as big as these.
Instead, I've got my eye on a small company that's at the forefront of this game-changing trend.
I like this concept for a lot of reasons. For one, I hate it when my credit card is taken out of my view. Two of my cards -- a debit card from my bank in Texas and my CapitalOne Visa -- were hacked recently, which meant both cards needed to be replaced. I didn't get stuck with any of the fraudulent charges, but replacing a card is still a hassle and securing the number on a special microchip would render fraud far more difficult.
It's also going to open up mobile payments to a whole new audience, notably among young people and a portion of the population that doesn't use banks. That's because not only is the credit card in Google Wallet available as a prepaid card -- no credit required -- it is also available on a prepaid smartphone through VirginMobile. This will certainly help push this technology into the mainstream.
And while I like VeriFone as a way to profit from this technology, my research has led me to a stock I like even more.
As I said, it's not Google. Nor do I think it will be Sprint (NYSE: S), which runs the network, and it's notCiti (NYSE: C) or MasterCard, which administer the card Google Wallet uses. Instead, the likely winner is a company most people have never heard of called NXP Semiconductor (Nasdaq: NXPI). It makes the special chips that go in the phone that "talks" to cash registers. The technology is known as near-field communications, and NXP is the leader, with critical existing supplier relationships with all the major phone manufacturers, including Apple.
Technology draws users, and marketing gets results -- especially when Google is behind it. I've covered this area in my Game-Changing Stocks advisory extensively (and will continue to update readers), and I continue to believe that alternative payment technologies are a hot opportunity for aggressive growth investors.
Action to Take --> This is a rocket ship you need to book a ticket on. Consider adding sharesof NXPI to your portfolio.
*Post courtesy of Andy Obermueller at Street Authority. He is the Chief Investment Strategist for Game-Changing Stocks. He spent ten years as a financial journalist, working for some of the nation's largest newspapers.-2
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