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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."

Disclosures:

Disclosure information for James Altucher was not immediately available.

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