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?
Recommendations:
"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."
