April 17, 2006

The Flash Trend - Adobe stands out

There are two big trends in Flash - the first is flash memory. More and more storage, at lower prices, delivered in a more stable way. Flash memory is a tough play because margins shrink constantly for the leaders.

The other flash trend is with Macromedia. I like reading TechCrunch and Mashable for many reasons. It has focus and alerts you to potential early trends - if you can read between the lines of Michael's analysis of web 2.0 companies.

I also like to apply what I read in a different way to the stock market. Today, I was reading about Click.tv and what stood out for me is the trend towards video editing and the utility of Macromedia.

Adobe now owns Macromedia - this is a big dominant company. Reading between the lines, it looks like these web 2.0 companies may put Adobe further into the sweet spot. Entrenched as they are, this could lead to some upside for Adobe over the next three to four years.

If you want to invest in companies like YouTube and Click.tv - Adobe may be the simple way to play the whole industry.

Worth a look for sure.

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