The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world.
In today's edition of "Buy, Sell, or Hold?" Austin looks at ZAGG. With mobile devices continuing to grow by leap and bounds, you may think the case maker is an easy buy rating, but Austin gives it a hold instead. Despite a lot of potential as smartphone and tablet sales continue to grow, there are no switching costs for ZAGG's products and its competitive advantage is nil. This is very much an "all ships rise with the tide" thesis. The growth rates in this industry are so nuts right now, it's likely that ZAGG will continue to grow in the near term. Looking beyond a year or year and a half, Austin has less conviction.
If you're one of the thousands of investors riding Apple to spectacular gains, you're doing yourself a disservice by not looking across the variety of companies benefiting from the same trends that make Apple the most valuable company in the world. The Motley Fool has just released a free report on mobile called "The Next Trillion-Dollar Revolution" that details a hidden component play inside mobile phones that also is a leader in the exploding Chinese market. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, and you can access this new report today by clicking here -- it's free.