On January 17th of this year Steve Jobs announced a leave of absence. Apple’s stock took a hit. By the time markets opened up on Monday the 18th Apple’s share price dropped from $348 to $326.

But the real story lies when Steve Jobs was forced to leave Apple in 1985. From 1985 to 1997, when Jobs was brought back on board, Apple was in serious trouble. They lost the majority of their market share to Microsoft and showed little hope of gaining it back. In 1996, the company was on the verge of bankruptcy.

But Steve Jobs came back and saved the day.

As I’m writing, Apple’s stock is already down 1.57%. Who knows where it is going from here? Apple’s dominance in the smartphone market is already under fire.

Ray Blanco, our resident technology expert, joined us back in June to talk about smartphone war between Apple and Google:

Google’s Android OS is an open source Linux variant. Android can run on devices offered by any hardware manufacturer that receives a certification from Google. iOS, on the other hand, runs only on Apple’s hardware.

This open nature has rapidly created a huge ecosystem for Android phones. It is a 21st-century replay of how the open PC platform came to dominate home and business computing in the 1980s.

Still, a great deal of credit has to be given to Apple. The iPhone and iPad devices have served as catalysts for new product markets.

And now with Steve Jobs gone…

Could this be Google’s final bite?

Fact is, who cares?

When asked today, Ray said:

The news wires are gushing with speculation over the impact the change in leadership will have on Apple.

My personal suspicion? Very little.

The innovative culture that propelled Apple to the highest capitalization on the U.S. stock market earlier this month isn’t going to disappear overnight. This is good news because Apple drives the entire industry. It makes everyone else have to bring their “A game” just to be able to compete.

In my opinion, the big news this week really isn’t Jobs’ resignation…

And if you are a true Penny Sleuther you already know the best way to profit from tech markets is not to invest in the giants like Apple. They have already established their place. You know that the best way to create fast gains is to invest in the tiny little companies. Stocks that could shoot up over night.

What you want to do is invest in the companies that will remain on top no matter who wins the smartphone war. Whether the recent news is the beginning of Apple’s demise. If this is the first step to Google’s take over. As smart small-cap investors, none of this even matters…

Stop paying attention to Apple and Google and start looking at small semiconductor companies. These small companies are providing the tools for all the major names in the business. They will continue to thrive no matter who ends up on top.

One example of the high growth in this industry is MIPS Technologies, Inc. Back in 2009 you would have had the chance to get in at $1.05 per share. As I am writing today the company is trading at $5.30 per share.

That is an astounding 504% gain!

With the accelerating growth in this market, these small semiconductor companies are the clear way to go.

Sincerely,

Jessica Comitto
Managing Editor, Penny Sleuth

Steve Jobs Resigns Again. So What? was originally featured in the Penny Sleuth.

As you read this, analysts at top financial and consulting firms are getting ready for next Monday, June 8. That day marks the start for Apple’s World Wide Developers Conference (WWDC), an annual meeting of the company’s software and hardware partners that’s historically been the launching pad for some of Apple’s most prolific products.

Rumor has it that a pretty big announcement is set for Monday: the next generation iPhone.

For months now, the dozen or so Apple-obsessed websites have been publishing leaked photos, product specs, and speculation about the new device – whether or not any of it will actually prove true come Monday is another story. One of the reasons for the hysteria is Apple’s culture of secrecy. The Cupertino, California-based technology company keeps new products closely guarded until the time is right for a big release.

The Small-Cap Connection

All of those big releases have meant big money for Apple – the company took in $32 billion in revenues last year. They’ve also meant big money for the handful of small companies that makes money by selling peripherals, software, and support to Apple’s customers.

One of the best examples is Zagg (OTC: ZAGG), a company that makes cases, headphones, and other accessories for the iPhone. While the company posted net losses in 2006 and 2007, since the iPhone’s release it’s managed to swing to a pretty substantial profit. ZAGG stock is up 420% since January as a result.

And some people are seeing even bigger returns from the Apple economy.

Look no further than Ethan Nicholas, a one-man team who watched his iShoot, a game sold on Apple’s iPhone Application Store, climb to No. 1 on Apple’s list of most popular paid applications.

In just two weeks, iShoot netted Nicholas almost $400,000 in profits… and the application is still selling as we type. That mountain of money has prompted Nicholas to quit his day job at Sun Microsystems to pursue game development full time.

Since the App Store was launched in July 2008, the company has sold more than 1 billion applications to iPhone and iPod Touch users. Clearly Nicholas hasn’t been alone in his Apple windfall, and penny stock game developers are cashing in too.

Among them was an over-the-counter stock that small-cap analyst Greg Guenthner recently recommended to his readers over at Bulletin Board Elite. Since his recommendation, the company has grown its net income by 42% this year, removing any doubt that even the little guy can profit from what’s going on right now.

“Hi, I’m a Mac”

Apple’s come a long way from the computer company that almost went bankrupt in the mid 1990s. Since Steve Jobs returned to the helm of this prolific company fortunes have been great for Apple – and for the Ethan Nicholases and Zaggs of the world.

Keep your eyes peeled on Monday… it could be a big day for small stocks that operate in the Apple economy.

Cheers,
Jonas Elmerraji

June 6, 2009

Have a Bite of the “Apple Economy” was originally featured in the Penny Sleuth.

The game, which he created in his spare time, made Demeter $250,000 in its first two months on Apple’s “App Store” — enough to entice him to quit his job as an ATM software designer and start his own game development studio.

But Demeter’s game earned mere pocket change compared with some of the other independent developers who’ve hit it big recently. Look no further than Ethan Nicholas, a one-man team who watched his own game, iShoot, climb to No. 1 on Apple’s list of most popular paid applications.

In just two weeks, iShoot netted Nicholas almost $400,000 in profits… and the application is still selling as we type. That mountain of money has prompted Nicholas too to quit his day job at Sun Microsystems to pursue game development full time.

The move was a decisive one for Nicholas. And his response to those who ridiculed his move to leave his lucrative day job was in the true spirit of a self-made businessman: This is why you will never be rich.

There’s also the story of the hit iPhone game, Tap Tap Revenge. The application is essentially a handheld version of Guitar Hero, in which the player attempts to tap the proper notes to the beat of a song. The game, which is available for free on the App Store, has been downloaded over two million times.

Tapulous, the developer of the game, recently started inserting advertisements in the game. With a strategy that has become increasingly popular during the broadband era, the company gave away their product for free, and then figured out how to generate revenue later (much like Google did with Gmail).

The potential of the mobile applications is enormous. Small software developers stand to make a great deal of money as smart phones become increasingly common.

But just because you don’t have any game-creation skills doesn’t mean that you’re precluded from getting a piece of the mobile game market — and who knows… maybe, you too will be able to quit your day job. We believe this mobile marketing revolutionary will make a significant impact this year, and the early small-cap investors stand to make some huge profits along the way.

Best,
Greg Guenthner

January 23, 2009

Mobile Game Developers Present Investing Opportunity was originally featured in the Penny Sleuth.