As investors debate over the iPhone from Apple (NASDAQ: AAPL) vs. the BlackBerry from Research in Motion (NASDAQ: RIMM), growth stock guru Toby Smith sees room for both in his ChangeWave Investing portfolio. Here's his latest.

"Apple recently took a big step out of its consumer-oriented world and into the corporate realm, one dominated by Research In Motion.

"Apple is teaming up with Microsoft to make the iPhone more 'businessy' for corporate users. Obviously, when the iPhone was launched, it was a huge success with consumers. Now, Apple is opening up the platform and making it more appealing to businesses.

"With its much-awaited iPhone software developers kit, Apple is banking on third-party software to differentiate the iPhone from the BlackBerry. The biggest challenge for Apple will be overcoming concerns about security, e-mail synching and the iPhone's high price.

"Undoubtedly, this shift into the corporate realm will take time, and it will likely be the small- and medium-sized companies that are the first to adopt the iPhone for business.

"We've been tracking the water industry for a while and it's been crystal clear that water is an area we want to dive into," says Toby Smith in his ChangeWave Investing. Here, he looks at a water-focused ETF.

"Water is often taken for granted, but that is changing. A combination of global economic growth and years of neglect are leading to a tidal wave of demand for water infrastructure and various technologies.

"It's forecasted that by 2025, almost two-thirds of the global population will live in countries where water will be a scarce commodity. Climate change could exacerbate the problem. Clearly, water issues cross all boundaries.

The water industry combines the best attributes of a good defensive strategy coupled with numerous 'offensive' plays. From a growth perspective, spending on water projects at all levels is on the upswing due to years of infrastructure neglect and under-investment.

"One great way for all investors to participate is by investing in an ETF with a water focus, such as PowerShares Water Resources (NYSE: PHO).

"The beauty of this water ETF is that it gives us exposure to each of the companies that were highest rated in our survey (comprising approximately one-third of the PHO holdings). PHO also has a well-balanced portfolio, with no single stock representing more that 4% of the total. IN our view, it's clear that the water industry will see above-average growth well into the future."

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"This is still a psychologically damaged market; take for example, what happened with VMware (NYSE: VMW) after its latest earnings announcement," notes Toby Smith in ChangeWave Investing.

"VMware recently reported that its fourth-quarter net income more than doubled on an 80% increase in revenue. Despite these excellent results, after-hours selling has plunged the shares lower by 25% to around $61.

"The culprit appears to be analysts' forecasts for an 82% increase in revenues. The buzz on the Street is that this miss signals stiffer competition in the virtualization space from Microsoft (NASDAQ: MSFT) and Oracle (NASDAQ: ORCL).

"However, during the conference call VMW management said customers have tried some competitors' products and told them that they see no reason to switch.

"This sell-off is similar to what recently happened to Apple (NASDAQ: AAPL) -- blowout performance followed by a hatchet job on the shares. As with Apple, we see this price drop in VMW as a great opportunity to establish a low cost-basis in the stock.

"A new study on stem cell research is mind-boggling," notes emerging growth expert Toby Smith in support of his recommendation for Geron Corp. (NASDAQ: GERN).

The growth stock expert and editor of ChangeWave Investing explains, "Geron reported its scientists and collaborators have demonstrated that human embryonic stem cell (hESC)-derived cardiomyocytes improve heart function when transplanted after myocardial infarction.

"Published online on Aug. 26, in Nature Biotechnology, the landmark study is the first to document the potential clinical utility of regenerating damaged heart muscle by injecting hESC-derived cardiomyocytes directly into the site of the infarct.

"In addition, the research confirms the effectiveness of a scalable production system that enables Geron to manufacture the cardiomyocytes for use in ongoing large animal studies and, ultimately, testing in humans."

"Video is the new email," states Toby Smith, referring to his forecast that video content over the internet is developing into the next "must-have" service.

The editor of ChangeWave Investing explains, "At the heart of this data highway is Akamai Technologies (NASDAQ: AKAM), which helps move all these video files from servers to your computer or other digital devices."

Until recently, the advisor notes, if you wanted to watch a TV show, you had to watch it on your TV set. Today, he says, and especially over the next five years, you're going to watch TV and other digital content on literally every screen you own. Further, he notes, soon this content will be delivered in high def -- which he considers the next "killer application."

Meanwhile, he adds, all this information has to get from "point A to B in the most efficient way possible." And, he feels, the company best poised to help in this effort is Akamai, which he notes is already the "biggest and best facilitator" of this web traffic. The company, he points out, already delivers 20% of all traffic on the web. But, he adds, it still has room to grow.

Smith notes that Akamai's system is the world's largest platform for on-demand distributor computing, delivering web content and applications for more than 2,000 customers in 71 countries. Its customer list, he adds, reads like a 'Who's Who' of the web.

"The momo crowd is at it again," says Toby Smith. The editor of ChangeWave Investing and panelist on Fox & Friends explains, "Momentum buying (or momo investing) strategies always tend to bid the price of the stock up as it goes higher."

But once the stock starts to sell off, he notes, "sell triggers are pulled and the momo players begin serious selling -- and that selling feeds on itself." But for those not caught up in the momentum craze, he adds, "For us, this just presents a great buying opportunity."

In his view, one such situation in which momentum-selling has created a buying opportunity is Sigma Designs (NASDAQ: SIGM), a maker of processors for markets such as high-def and Internet protocol TVs.

He notes that in Sigma's case, there were two primary factors that caused momo investors to sell. First, he notes, the company recently brought out 'limited' financial results for fiscal fourth-quarter and full-year 2007, ending February 3.

He explains, "SIGM's quarterly revenue was up 197% to $31.2 million, from $10.5 million in the year-ago period; for the year, revenue grew 174% to $91.2 million, from $33.3 million in fiscal 2006.

"But amidst the good news was word of a delayed announcement of further financial results pending the completion of a review of Sigma's stock-option-granting practices." That, he says, was "strike one."