April 21, 2014
FROM THE EDITOR
Nancy Zambell

by Nancy Zambell
Editor of Dick Davis Dividend Digest and Dick Davis Investment Digest

Big Data is Creating Opportunities in Every Sector

There are scores of companies itching to make money from the Big Data Revolution. Some have developed products that can compile reams of data from numerous servers and applications into manageable formats. Other services enable the complex number crunching that’s required to make sense of the data. Several companies help businesses use the data that’s harvested for future projections. And a few customize the applications they’ve developed for their own businesses to resell to their clients.

New applications are arising almost as fast as the amounts of data being generated. Data is multiplying by the second. According to IDS, 1.8 zettabytes (1.8 trillion gigabytes) of data was created in 2011—enough data to fill 57.5 billion 32-gigabyte iPads. That’s a lot of bits and bytes!

Data has just about taken over the world:

• Every single hour, Walmart processes more than one million customer transactions. They are stored in databases estimated to contain 2.5 petabytes (2.5 million gigabytes) of data. In case you’re wondering just how large that is, consider that all of this data would fill 167 times the number of books in the U.S. Library of Congress.

• According to IDS, 1.8 zettabytes (1.8 trillion gigabytes) of data was created in 2011—enough data to fill 57.5 billion 32-gigabyte iPads.

• Facebook users have posted 50 billion photos on the site

This data is coming from every device we own. Between 2008 and 2009, the number of devices connected to the Internet exceeded the 7 billion people on this planet! Furthermore, IMS Research predicts, that by 2020, up to 22 billion embedded systems and other portable devices will be connected to the Internet. And those devices will produce more than 2.5 quintillion bytes of new data every single day. It’s estimated that data is growing at 50% annually, and doubling every two years.

The problem is this. Until recently, most of that data was just collected and stored. Sure, some of it was used to program simple functions, like geolocation for your automobile or synching your iPhone and iPad. But most of it just sat around in big server warehouses because the computing capacity just hadn’t yet caught up.

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EDITOR'S PICK

April 17, 2014
Century Aluminum Company (CENX)
Roger S. Conrad

Roger S. Conrad

Rising demand for aluminum from the U.S. automobile industry bodes well for Century Aluminum Company (CENX). Century Aluminum specializes in smelting and owns six facilities in the U.S. and Iceland.

Between late 2003 and mid-2008, China’s insatiable demand for the metal fueled an extended rally in aluminum prices. However, aluminum prices have weakened significantly since this inflection point, hitting their lowest level since the 2008-09 financial crises in January 2014.

Century Aluminum’s management makes a compelling case that, outside of China, the world faces a deficit of aluminum production. Read More »


FEATURED INCOME INVESTMENT

April 11, 2014
Sanofi (SNY)
John Buckingham

John Buckingham

This company develops products for the Pharmaceuticals, Human Vaccines and Animal Health industries. The company’s dividend yield is 3.8%, paid yearly.

Based in France, Sanofi (SNY) is a global integrated healthcare company focused on seven growth platforms: Diabetes Solutions, Vaccines, Genzyme, Emerging Markets, Consumer Healthcare, Animal Health and Other Innovative products.

We like that the company has a relatively robust and promising pipeline of new pharmaceuticals, including several that address diseases that have no current treatments. We are attracted to SNY’s industry leading global insulin position, via its mega blockbuster Lantus. We believe the opportunity in this space is substantial as the global population of diagnosed diabetics is likely to show robust growth as obesity rates continue to climb. Read More »


INCOME INSIGHTS

Dr. John Faessel

Dr. John Faessel

from On The Market, April 7, 2014

Weekly end of trend candles are flashing danger, and the Nasdaq now has a broken chart. We are basically where we were on New Year’s Day in most indexes.

On Friday—after ticking a new all-time high—the S&P 500 dropped 1.3% and the Dow Transports were down 1.46%. The Nasdaq peeled off 2.6%. The Investor Business Daily 50 “high flyers’ took a huge 3.6% wham. Volume rose sharply across the board. Many of the top 50 performing stocks are flashing warning signals with the market’s renewed sell-off.
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