Stocks | Jun 22, 2007 | 1 Comment

Cashing in on WiMax

Wi-Fi was so yesterday. There’s a new network on the horizon and it’s called WiMax. Wi-Fi currently works in certain areas and speeds can be limited. WiMax will change everything.

Forget about your local Starbucks or bookstore being a hotspot, how about having your entire city being a hotspot? WiMax will allow you to use your laptop, phone, whatever anywhere at anytime. And the speeds will destroy DSL and 3G.

Yes, WiMax has been talked about for years technically and it’s been offered in other places, but now it’s coming in the USA and it could be ready for primetime. And unlike Wi-Fi, only a few WiMax towers are needed to cover an entire city. I’ve got a basket of stocks that you need to think about.

Sprint

Sprint (Symbol: S) will be the first U.S. carrier to offer this next-generation network in the USA. By the end of 2007, their WiMax service will be live in Baltimore, Chicago and Washington.

Sprint will be able to offer their service in 30-40 markets by 2009.

Spint’s stock closed at $22.02 on Friday, June 22. Will this be the catalyst that sends it to new heights? Before you rush out to purchase the stock, do your homework. I think the stock will pullback some.

Motorola

Motorola (Symbol: MOT) will offer devices for the WiMax market. According to In-Stat, this market could be at $5 billion within four years.

Motorola’s stock closed at $17.89 on Friday, June 22, which is near its 52-week low ($17.32).

Intel

Intel (Symbol: INTC) is the chip manufacturer that’s working with Sprint, Motorola, Nokia, and Samsung on this next-generation network.

Intel’s stock is close to a 52-week high ($24.45). It closed at $23.70 on Friday, June 22 and looks to be going a little higher in after-hours trading.

Clearwire

If you’re looking for an alternative from or addition to Sprint in the WiMax market, look to Clearwire. They are working to have their network up by 2008 and it could grow to service up to 45 million people within 1-2 years—about 45% of Sprint’s projections.

Clearwire picked up the FCC’s first WIMAX-CLASS approved laptop card. This card ties in with Motorola’s wi4 Expedience solutions. The product is expected to be available in the second half of 2007.

The stock has pulled back slightly over the past few days. It closed on Friday, June 22 at $23.40. Other stock analysts think it’s coming down to about $22. Its 52-week high was $27.95.

Making Money with Technology

WiMax for the USA will start picking up speed by the end of this year. All the stocks I mentioned will be players in that move.

If you want to cash in on WiMax, start your research with these stocks.