GPS Investors flee from Google's Shadow

Google Navigator, a seemingly natural extension of existing Google Maps technology that's found on smart-phone platforms like the iPhone and Android, has GPS company investors running from the hills.

The issue isn't that the technology from Google (GOOG) is significantly better, it does look very good and would be a formidable competitor, the issue is Google's affinity to price all-things-Internet at $0. Considering Navigation subscriptions run in the $100s of dollars/year, not to mention the cost of the units themselves, how many GPS users would turn to something else from, for now, trusted Google at zero cost that works on their existing cellular phone? I'd bet many, and the market is betting that way too. Gizmodo (Link), the technology blog, has an informed quick review of Google's entry into the Navigation business.

The sell-off in the market has certainly contributed to some of the downfall in GPS stocks, however major players Garmin (GRMN) and TomTom (TOM2) are down 16% and 20%, respectively.

The age of convergence in technology is certainly upon us, better cameras are coming to cellular phones, better media players are already there, and now GPS navigation capabilities are becoming mainstream. The stand-alone technology gadget/device is becoming a niche rather quickly.

Android, the free open-source cellular operating system developed by Google, is taking off by leaps and bounds this year, with several high profile phones on tap on high profile networks, such as Verizon (VZ), AT&T (T) and T-Mobile in the US. The platform, which recent research has predicted, could overtake the popular Apple (AAPL) iPhone in market-share over the next few years, needs applications like Google Navigator to be exclusive on enticing handsets in the months to come. The Momentum is building for Android and Google is keeping the fire lit with its Navigation application.

The only problem for investors, Google doesn't want to charge for anything but advertising! In all likelihood however, this is the next step in Navigator's life cycle, and Google can continue its march into dominance of the mobile ad industry, just as it has trounced the competition in search.

Disclosure: Author owns GOOG

Markets Lull Ahead of Earnings but Tech Continues to Sizzle

An overall negative market day in North America was propped by continued strength in Technology stocks. The Dow Jones and S&P were both lower but the Nasdaq managed to eek out a quarter percent gain. Volume levels were lower across the board as earnings from major companies are seemingly around the corner.

Technology was at the forefront all day as many new all time highs were not only reached but breached once again. Google (GOOG) most notably passed the $600 mark closing at $609.62.
Apple (AAPL) and Research In Motion (RIMM) continued to show strength with gains of 4% and 3.7% respectively. Previously beaten down names like Akamai (AKAM), up 8.4%, and Garmin (GRMN), up 4.5%, made rebounding strides today.

The winter season has so far been mild, which has put a dent in oil prices, dragging down Exxon Mobil (XOM) and Co. Gas Prices however, have sustained at high levels and that re-ignites investor fears that consumers will take their holiday spending down a notch. It'll be a battle between the bulls and the bears over the next few weeks as the markets seeks a true direction throughout the winter months. So far the Bulls are proving they have the edge, especially in Technology.

Disclosure: Author is long AAPL, GOOG, AKAM

Markets start October with a Bang as Dow hits All Time High

The rally continues in the wake of the Fed Rate Cut last month and stocks extended gains as the calendar changed from September to October. The Dow hit an all time intra-day high of 14,115 points as the index gained over 190 points. The Nasdaq followed suit with an almost 40 point gain and the S&P held up a 20 point gain. Canadian markets ended with about half the gains of its US counterparts as investors bought stocks across the board bidding the TSX up 100 points. The advance was broad and spanned every sector. Volume was also much heavier than the week prior as investors on the sidelines during the end of the quarter jumped back into the markets to fuel the rally.

Citigroup (C) drifted off its highs late but was up over 3% in the afternoon as it provided an optimistic outlook for the remainder of the year. The financial heavyweight announced that profit fell 60% due to loses in credit and mortgage securities totalled almost $6Billion. Guess the big bank guys weren't as smart of those Goldman Sachs (GS) traders who shorted such monstrous amounts of mortgage investments to cover up and make up hefty losses. Nonetheless investors were pleased as Citigroup told the markets they expect a calendar 4th quarter that would return things to the norm. Goldman gained another 3% to close at $223.

Nokia (NOK) also made headlines, and started the day well down, as it announced the purchase of Navteq (NVT), the navigation software company, for over $8Billion. Nokia shook off the early heavy drop before the market opened and managed to close the day in the green and even hit a 52-week high above $38/share. Nokia hopes to leverage Navteq's expertise in maps and navigation into its future lineup of mobile phones. The loser here apparently was Garmin (GRMN) as its shares fell 10% on investor speculation that it lost the bid for Navteq's service and now faces stiffer competition from Nokia.

New highs were aplenty in Tech stocks as Ebay (EBAY), Apple (AAPL), IBM (IBM), Hewlett-Packard (HPQ) and Google (GOOG) all hit new marks, while Research In Motion (RIMM) and Amazon (AMZN) came oh so close. Google continued its sharp rise adding $15 and crossing the $580/share price mark for the first time in its young public history. As major techs get set to report earnings in the coming weeks it'll be increasing difficult to judge which of those companies are too inflated for their own growth prospects. But now, while the rally is in full swing, investors are coming back into play and buying Technology ahead of earnings and the seasonally strong holiday quarter.

Disclosure: Author is long AAPL, GOOG, GS, C