Catch a Ride on the Fiber Technology Wave
The biggest risk to the American middle class isn’t the rising cost of oil or the increasing scarcity of credit. As real as those potential problems may be, they’ve got one saving grace in common: Everyone knows about them. We can see them coming on CNN or in the pages of The Wall Street Journal. Experts are working around-the-clock to make sure that they don’t get worse.
But while Congress and the watchdog groups focus on solving those giant conundrums, a sleeping problem is creeping up from behind — bandwidth scarcity.
While you may be paying dearly for that blazingly fast Internet connection, industry insiders are flustered about the projected cost raises that will be necessary to meet the sky-high demand for data. Already, the information networks that carry your television programs, phone calls and e-mails are nearing capacity… and without investment today, AT&T expects the Web to reach full capacity by 2010.
And that’s nothing — we’re already projecting bandwidth needs to increase 100-fold by 2015…
These important deadlines are creeping up on everyone involved in the bandwidth biz. But does it mean that you’ll be paying $7,000 per month for cable Internet and digital television services? Thankfully, no…
Today, commerce relies absolutely on the flow of data from the Internet. Hundreds of billions of dollars trade hands online each year — therefore, it’s in the best interest of the utilities and our government to keep it that way. That’s why giants like AT&T and Verizon are prepared to lay down mountains of money to increase Internet capacity across the country.
Unlike a decade ago, they won’t be doing it by laying traditional metal wires. The future is in fiber optics. And we’ve found an undervalued penny stock that’s ready to take advantage of this powerful trend…
Fiber Optics: Your Hidden Profit Generator
Fiber optics are superior in nearly every way to the metal wires that likely feed data to your home. Fiber-optic cables carry more data than traditional cables, and they do so farther, at a lower cost and with less interference.
Instead of running electrical signals through a metal wire, fiber optics work by carrying pulses of light through flexible glass or plastic fibers. Though that may seem like a technology out of the latest Star Trek film, it’s not. Companies are adopting fiber-optic technologies in a big way — most notably with Verizon’s FiOS service, the first of its kind to deliver TV, Internet and phone service directly to consumers on a 100% fiber network.
Of course, the transition to fiber optics isn’t cheap. Verizon’s footing a $23 billion installation bill for the cable required to connect 18 million homes to its service by 2010.
This money is going to a few very tiny fiber optic companies. These companies manufacture and sell components and integrated modules necessary to run fiber cables to consumers. It’s this infrastructure-building phase where the big profits come in. In fact, we found one $38 million microcap that’s actually posting profits. This is unheard of for a company this size, but it’s because of its lucrative contracts with Verizon and other future fiber optic providers.
June 26, 2009
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