Home » Finance » Stock Market

Profit From The Technology Slope

Aug 17, 2007
You've probably noticed how rapidly current mediums of technology are changing. Traditional CDs & DVDs will be replaced by a new generation of digital media in a few years, and the progress of wireless technologies and internet enabled communication will make a number of communications technologies obsolete. The technology slope is accelerating at a record pace, and if a corporation is too specialized on a "ground-breaking" technology that can quickly become obsolete, that company will be left behind in the unforgiving market.

Here are some companies that may be left behind because of an obsolete technology:

1) XM Satellite Radio & Sirius Satellite Radio

The fundamental question is: Why do we need to go to outer space to access CD quality music? I think that the advent of internet radio will quickly make satellite radio obsolete. Neither major company expects to earn a profit until 2008 but by then I'd expect to access internet radio from my car. With the advent of broadband wireless technology that can span many miles and costs less than satellite, the usefulness of satelite transmitted data as used by these companies should decline greatly.

2) Netflix

CDs & DVDs are quickly being replaced by digital media that can be downloaded from a computer and by the new standard, Blu-Ray discs. iPods & mp3s are quickly replacing CDs and before long we will be able to download full length movies on your TV. With download speeds and bandwidth constantly increasing across the internet, the availability of full quality DVDs is within reach, and becoming moreso every day. Who wants to wait 2-3 days to watch a movie anyways? Netflix is in trouble unless they can change in a big way; distributing digital content through the mail is going the way of the dinosaur.

3) General Motors

Car manufacturing is a very expensive process, especially in the United States. Several automakers are taking big steps to increase the offshore presence to China, Vietnam, and Mexico. Meanwhile, General Motors continues to ramp up efforts in the United States. General Motors will continue to lose billions of dollars unless they can expand cost-cutting efforts to offshore manufacturing plants.

Keep in mind that you can profit in the stock market from shorting stocks, too. Selling a stock short is essentially betting that the particular stock falls in value. If the stock drops, you profit. I believe the three stocks above will fall drastically over the next decade unless they can turn things around in a big way.
About the Author
Thomas J. McCarthy is an investor, entrepreneur and The Dean of Education at www.CollegeStock.com whose perspectives have changed the way people think about money and investing.

www.CollegeStock.com is the World's #1 School of High-Risk Investing. CollegeStock seeks to provide a community in which risk-tolerant investors can learn about and discuss issues relating to finance and investing.
Rating:
Please Rate:
(Average: Not rated)
Views: 206
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources