EmergingGrowth.com, a leading digital financial media company, Reports on Apple (NASDAQ: AAPL) to bring Jobs back to the US. Emerging Growth companies to benefit are, TriQuint Semiconductor (NASDAQ: TQNT), Multi-FinelineElectornix (NASDAQ: MFLX), TTM Technologies (NASDAQ: TTMI) and Peregrine Semiconductor (NASDAQ: PSMI). OtherEmerging Growth stock picks incluce, Navios Maritime (NYSE: NM), and DryShips, Inc. (NASDAQ: DRYS) and Xoma (NASDAQ: XOMA) after higher than market private placements through Credit Suisse (NYSE: CS) and Cowen & Company (NASDAQ: CWON).
In an interview yesterday with NBC’s Brian Williams, Apple (NASDAQ: AAPL) CEO Tim Cook announced that one of the existing Mac lines will be manufactured solely in the United States next year. While it likely will not make a dent on the nation’s eight percent unemployment, it is welcome news. Apple won’t need to rely on a huge labor force because the merchandise line is diminutive and because this type of manufacturing relies much more on advanced robotics. What is hopeful is the fact that Apple’s investment in America will generate need for a more home-based supply chain, which will, in all likelihood, create a ripple effect. This bodes well for Apple’s suppliers and partners in the U.S., some of which are emerging growth companies.
One of these companies is a very nice small-cap tech holding, TriQuint Semiconductor (NASDAQ: TQNT). The Hillsboro, Oregon-based company, with a market cap of around $823 million, provides radio frequency technology for communications, defense, and aerospace companies globally. It manufactures the little parts that manage power and other important processes in Apple’s mobile devices. Another supplier, Multi-FinelineElectronix(NASDAQ: MFLX) has a market cap of $423 million and engages in the design and manufacture of bendable printed circuit boards and related component assemblies for the electronics industry. TTM Technologies(NASDAQ: TTMI), which is an emerging growth supplier of printed circuit boards (PCBs). PCBs are the spine of many electronic devices. The specialized machinery of a gadget is attached to the PCB, which then controls the communication between them. Peregrine Semiconductor (NASDAQ: PSMI), with a market cap of $533 million, designs and sells radio frequency integrated circuits (RFICs) based on UltraCMOS technology.
There are sound business reasons why the United States is becoming progressively more appealing as a manufacturing site. It’s getting pricey for companies to create goods in China. The rising price of energy is making a huge impact. It’s becoming more expensive to power Chinese factories. In addition, the cost of shipping the finished goods to the U.S. has a tendency to eat away at the benefit of a low-cost labor force. Chinese salaries are also rising, which reduces the advantage further.
Investors looking for a little more leverage in reference to Apple's never-ending ascendancy should consider buying the minor businesses that supply Apple with the parts that go into all those millions of mobile gadgets that the company produces. They are well positioned to benefit from a Mac line produced and assembled entirely in the United States.
Other EmergingGrowth.com Stock Picks:
The Baltic Dry Index, which measures commodity-shipping costs, has slowly been trending upwards after nearly a 40% drop that ended in late October. When looking at the BDIY chart, technically speaking it looks like an early bottom has formed in the index. Profits in the industry are not expected to go to back to pre-credit levels in the near future, with a slow recovery to be expected over the next few years.
That said, there are a bunch of companies in this industry that have been greatly oversold due to fear of economic conditions not getting any better. Those that have weathered the storm in the shipping industry will be able to come out stronger as we have seen the survivors of the housing market perform quite well this year. Navios Maritime (NYSE: NM) and Dryships, Inc. (NASDAQ: DRYS) have been severely oversold due an ailing industry and the fact that their headquarters are located in Greece. With a rebound expected in the industry these two stocks offer great points of entry.
Xoma Corporation (NASDAQ: XOMA) received notification during the year from the US Food and Drug Administration (FDA) that its gevokizumab drug for the treatment of non-infectious intermediate veitus has been granted Orphan Drug designation.
Consequently, Xoma raised $40 million on October 24 through a private placement with Credit Suisse (NYSE: CS) and Cowen & Company (NASDAQ: CWON) at $3.00 per share.
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