For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.
"My more speculative idea for 2008 is Immersion (NASDAQ: IMMR)," says Karim Rahemtulla, investment director for Xcelerated Profits Report.
"This time last year, Immersion shares were trading in the single-digits. But when the company finally prevailed in its prolonged patent infringement lawsuit against Sony, the stock took off.
"The company is an industry leader in the field of 'haptics' and touch-sense technology. This is the kind of software you find in PlayStation gaming consoles and associated games – which makes the controller vibrate and puts gamers into the action more realistically.
"But the company also has major revenue streams in a variety of areas. In the medical industry, for example, its force-feedback technology is helping surgeons train in a more realistic way, replicating the motion in the human body. The medical segment is Immersion's biggest revenue generator, accounting for around 40% of annual revenues.
"With the success of Apple (NASDAQ: AAPL) with its iPhone, a huge number of consumers are now aware of the power of touchscreen technology. And while Immersion played no part in the device, we think this is poised to become one of the world's most lucrative and life-changing developments.
"Already, mobile phone giant Nokia (NYSE: NOK) is using Immersion's VibTonz vibrating technology in its cellphones and Immersion also has a deal in place with Samsung. We think Motorola (NYSE: MOT) could follow suit shortly in order to keep pace with the trend.
Immersion's touchscreen software is also used in the casino gaming industry. And in the auto industry, Immersion is helping to make drivers' lives simpler with its force-feedback technology on the dashboard controls. The company has a deal in place with Volkswagen here.
"There are plenty of bullish arguments: robust institutional buying, a share buyback program, three straight profitable quarters, and corporate deals already in place. In addition, Immersion holds more than 600 patents in the industry, putting it in a very strong position for further growth in 2008.
"The bet here is that touchscreen devices will continue to become the new technology -- and Immersion is the firm that has a lock in bringing these screens to life."
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