Video On Demand
Two weeks ago, I talked about
how Fidelity’s Peter Lynch used to find his favorite stocks by
identifying hot new products at the mall and how I preferred to find some of my
favorites simply by walking around the halls of my high-tech business school.
I want to continue on that theme this week by talking
about one of the latest innovations that the Graduate School of Management at UC-Irvine
is offering to students: video-on-demand classes.
This technology is big for my school because many of our students commute
to Orange County from Los Angeles and San Diego and beyond.
If they can catch a teaching session on the Net rather than schlepping a
100 miles, it’s a real time saver. If
students can catch the event “asynchronously†— whenever they want —
that’s a big boon, too.
Much more broadly, the video server market is now getting
a huge boost from the events of 9/11 as business executives, government
officials and the general public seek ways of substituting cyber travel for
physical travel and synchronous meetings for asynchronous viewing.
Two video-on-demand macroplays are Concurrent Computers
(
CCUR |
Quote |
Chart |
News |
PowerRating)
and SeaChange
(
SEAC |
Quote |
Chart |
News |
PowerRating) — leaders in the market.
Both look strong technically, with CCUR having a slight edge.
But both look much weaker fundamentally, with SEAC ranked only 101 out of
253 in its IBD sector.
Here’s the
chart of the two stocks. Both look ready
for a breakout. CCUR looks a little more
favorable, but this could be a basket trade, with initial positions in both.
(In
the charts above, the blue
line is the 20-day SMA, the red
the 50-day SMA, and the pink the
200-day SMA.)
This is a position
trade. It’s always wise to scale in
with one eye on the stock and the other on the market trend.
If you have a favorite macroplay you would like me to
feature in this column, send me an e-mail at pnavarro@uci.edu
or go directly to my website https://www.peternavarro.com.
I’d love to hear from you.