Stock Picks: Digital TV Plays
The digital age has transformed the way people watch television, and James Altucher has translated that transformation into a couple of fresh ideas for investors.
"People watch an average of four or five hours of TV a day, but they don't just watch according to...a schedule," the founder of stockpickr.com told CNBC. "They basically DVR everything; they TiVo their favorite shows...and they not only have television sets, they have home theaters."
So where are the investor plays?
"You need sophisticated remote controls to manage this," he said. "(Universal Electronics) makes those remote controls."
Not only that, he contends, it's well-managed.
"This is a company that $83 million in cash," he said. "They trade for just nine times EBITDA; insiders have bought back about $700,000 worth of stock over the past few months."
He also likes Harmonic.
"They're on the other side," he explained. "They're on the cable company side; they help cable companies pave the way for broadband, video-on-demand, and so on."
Disclosure information for James Altucher was not immediately available.