This little stock could get a lot bigger

Here is an interesting little stock that could get a lot bigger

Here's a little something to consider: the next big battle between Google and Apple in the smart phone arena could very well be voice recognition.

Two weeks ago Google purchased Phonetic Arts who develop speech synthesis technology designed to improve the quality of spoken language. They purchased it to basically beef up their Android OS for smart phones.

Another leader in this technology is a company called Nuance.

About the same time that Google was making its purchase of Phonetic Arts, Apple co-founder Steve Wozniak let it slip that Apple was going to buy Nuance, the makers of Dragon software and a leader in voice recognition. With that slip of the tongue Nuance stock shot up, but quickly fell back when the Wozniak (known as the WOZ) said he made a mistake and that it wasn't true; Apple wasn't buying Nuance. It was called the $600,000,0000 flub, but was it?

Nuance is about a $5 billion company right now and Apple just happens to have about a gazillion dollars in its corporate coffers. Apple's visionary leader Steve Jobs said he would not rule out an acquisition of that size before the end of the year.

So okay, we have an interesting fundamental picture. What is interesting to me is that MarketClub's "Trade Triangles" are also very positive with a +100 reading on Nuance. It would seem that if in fact Apple does acquire Nuance, it will be paying a premium for the stock.

It is well known that Apple is a very secretive company and they're certainly not going to play their hand out unless they have a deal in hand. I believe that Wozniak's slip of the tongue was in fact what may be going on right now.

So there you have it, a potentially bullish situation fundamentally for the stock as voice control of smartphones is going to become a bigger and bigger element in the future. It is one that is just waiting for Apple to put it's cool touch on it. On the technical side, you certainly have a bullish picture for the stock with all of the "Trade Triangles" aligned.

It may be a stock you want to look into. The company's name is Nuance and its stock symbol NUAN is traded on the NASDAQ.

As many of you who read this blog know, I'm a huge Apple fan and I believe that this potential acquisition could give the new iPhone 5 a huge jump on the competition when it it announced.

As always, this is not a recommendation to buy Nuance stock, it is simply an observation of what is going on in the market.

All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub



5 thoughts on “This little stock could get a lot bigger

  1. I've owned Nuance stock in the past but was luky to sell it before the 2008 market slump. I think an aquisition is not mandatory if you want to incorporate a product of technology into your offer to the market. Apple may just sign a partnership agreement in which it can dictate the rules and not the liability of a merger cash out and personel instability. In either case that would be good news for Nuance.

  2. Re Nuance
    Paul Ricci, CEO, just liquidated over $5 Million in Nuance stock on 12/1. While there are many reasons to sell shares, it seems odd to me that if Apple is shopping, the last thing a possible buy target company CEO would do is sell too soon.

  3. Problem is by the time sites like this release prospective money makers the wind has gone out of the sails and its time to short not buy.

  4. I'd like to recommend any of the precious metal ETFS...particularly for SILVER, such as [SIVR] and a couple of others. There's a new combined Gold/Silver/Platinum/Palladium ETF [GLTR] which looks very interesting too.

    A recent radio [fund program] commentator discouraged ETFs on the basis of liquidity...due to low trade volumes. This is absolutely NOT CORRECT advise for the precious metals, since several 100 thousands of shares per day is VERY adequate for "redemptive" purposes.

    Thanks

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