Thursday, October 14, 2010

Zagg skyrockets

Zagg adjusted their 2010 guidance to 70% growth from 30%. It now trades around $7.30. They have been adding distribution channels and it is only a matter of time before they are in Verizon and Wal-mart. They are now in Target. The potential in the stock is astounding. Management is leveraging their brand name to branch into higher-end electronic accessories. I realize that invisibleSHIELD drives the lion share of their success and therefore depends in large part on the success of smart phones and tablets, but who would bet against protecting those? Maybe if the makers start to create already scratch resistant models, then Zagg could suffer. I would not except this kind of growth forever, it will probably ebb and flow with the flow of products, mainly apple products, but in a way that is good because with new designs, new protection is required because they are different shapes. Apple's model of self-cannibalisation will help Zagg.
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