"Your product or service is ready to ship when it promises a commanding new value proposition that pushes the state of the market to the next curve. Your revolution has to be at least 1,000 percent -- ten times -- or an 'order of magnitude' improvement."
-- Guy Kawasaki, former chief evangelist of Apple
Truly revolutionary companies don't just come up with new ideas or products; they drastically change and shape the way business is done within their competitive landscape. Apple changed the way we purchased music and thought about operating systems, and then it surged ahead with the advent of the iPod and iPhone. Wal-Mart did so by using tremendous supply chain management and massive purchasing power in order to offer customers heavily discounted items. Both of these companies have been revolutionaries in their fields, and both have rewarded shareholders immensely.
The ability to find the next revolutionary company can wipe out any losses you might have incurred with other stocks. It can change your thinking, and best of all, it can transform your portfolio into a money-making machine in one fell swoop.
Today, I will tell you all about that one life-changing company and then provide you with a brand-new free report that identifies The Motley Fool’s top stock pick for 2011!
The last revolutionary stock
On May 7, 2010, I wrote an article revealing what I thought was the next revolutionary stock: IMAX
- It had a technological advantage over its peers and had a first mover advantage.
- It had increased revenues over the past year.
- IMAX changed the way consumers viewed its industry.
In the time since I wrote that article, IMAX has continued its dominance in the 3-D realm. With only limited competition from RealD
Another stock to add to the list
Today I want to introduce you to NXP Semiconductors
- It has a clear technological advantage with near-field communication, which it helped to invent, and now markets its NFC chipsets to a vast majority of big-name companies.
- It has increased revenues over the past year by more than 25%.
- NFC could easily change the way people use mobile devices in all aspects of their lives.
NFC is a short-range communication technology that can be used in smartphones to streamline mobile ticketing for public transportation, electronic ticketing, identity documents, mobile commerce, electronic keys, and much, much more. Imagine you're shopping at a store and find something you like -- you wave your phone at the item and immediately see comparative shopping stats, pricing info, and product details. Imagine you never have to hold a car key again and instead just swing your phone near the door and it magically opens. These are the types of life-changing ways in which NXP's chips could be utilized in the future.
To be up-front, NXP is a total turnaround story. The company hasn't been profitable since 2004 and has a heavy debt load, albeit one that it can probably handle. The beauty of this situation is that after being taken over by private equity firm KKR in 2006, costs have been slashed and a new management team has been put in place. The company is now in a much better position to take advantage of the smartphone boom and to battle competitors like STMicroelectronics
NXP has already proved itself a major player despite only recently going public, illustrating that its years of expertise gained at Philips is well-recognized. It is the exclusive provider of NFC chips for the world's largest handset maker, Nokia
Get in before everyone else does
NFC is clearly a technology that will move the market to the next curve. Fortunately, consumers are ready, the foundation has been built, and companies all around the world are pushing for its immediate acceptance. The best thing you can do is to get in before everyone else does -- because this stock is one that won't hang around for too long.
Jordan DiPietro owns shares of IMAX. Google and Wal-Mart are Motley Fool Inside Value choices. Google, IMAX, and NXP Semiconductors are Motley Fool Rule Breakers recommendations. Apple is a Motley Fool Stock Advisor pick. Wal-Mart is a Motley Fool Global Gains recommendation and a Motley Fool Income Investor choice. Motley Fool Options has recommended a bull call spread position on Apple and a diagonal call position on Wal-Mart. The Fool owns shares of Apple, Google, Qualcomm, and Wal-Mart. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.