Saturday, August 09, 2008

Hands Free Stocks

Two significant hands-free laws went into effect on July 1. In California, according to the Department of Motor Vehicles, the law prohibits all drivers from using a handheld wireless telephone while operating a motor vehicle, however, motorists 18 and over may use a "hands-free device." In the state of Washington, the law is virtually the same, prohibiting the use of a wireless device such as a cell-phone being held to your ear while you are driving. Because of these new laws, there may a trading opportunity with the companies that make the Bluetooth headsets.

Unfortunately, you can't invest in Aliph, maker of the stylish Jawbone headsets, although two venture capital companies, Sequoia Capital and Khosla Ventures, own part of the company. However, there are plenty of other companies that make these headsets.

Plantronics (PLT) makes Bluetooth headsets, telephone headset systems, and accessories, The stock has a PE of 17, a PEG of 3.6, and a yield of 0.8%.

Motorola (MOT) makes headsets as a small part of its overall mobile telecom business. The stock has a forward PE of 26 and a PEG of 13. They pay a yield of 2.2%.

Nokia (NOK) the mobile phone company, also puts out headsets. The stock has a PE of 12, a PEG of 0.84, and a 2.9% yield.

Sony Ericsson is a joint venture between Sony (SNE), the Japanese electronics and media company and Ericsson (ERIC),the Swedish telecommunications company.

Parrot (PAOTF.PK), which rarely trades on the Pink Sheets in the US, is based in Paris, France, and is one of the leading manufacturers of hands-free mobile telephone devices. The stock has a PE of 12.

Samsung Electronics (SSNLF.PK) is one of the world's largest electronics manufacturers, which is based in South Korea, also makes headsets. This is a high priced stock that sells for over $600 per share.

There is even a Blackberry brand BlueTooth headset. The BlackBerry products are produces by Research in Motion (RIMM), which has a PE of 49, and a PEG of 1.01.

Matsushita Electric Industrial Co., Ltd. (MC) makes headsets through its Panasonic brand of electronic products. They have a PE of 15 and a PEG of 1.48.

For other telecom related companies, check out High Yield Telephone Stocks, and Brazilian Telecom Stocks.

Author does not own any of the above.

By Fred Fuld at Stockerblog.com

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