Monday October 24, 2011
by Mike Cintolo, editor Cabot Top Ten ReportApple’s newest innovation for its wildly popular line of iPhones is a digital personal assistant called Siri, which allows users to verbally create appointments in their calendars, place calls and even do Internet searches.
Wall Street analysts believe that
Nuance Communications (
NUAN) is the technology provider behind Siri, and shares have been enjoying a surge of interest as a result.
Nuance also has a hand in a new smart phone technology that is expected to be a standard feature of iPhones and Droid phones alike: Swype (named after the company Nuance owns that originated the technology).
Swype allows you to create a word on a phone screen keyboard by simply running your fingers in a steady motion over the letters. That allows phone fanatics to generate 40% more words per minute than typing.
Investors also like Nuance’s positioning in the burgeoning electronic medical records business, where federal mandates spur hospitals and doctors to move away from paper records in order to facilitate treatments and, hopefully, cut costs.
NUAN slid to 16 in the August bear market move but immediately bounced on strong volume to 20.
The move from 20 has accelerated the uptrend and shares have rocketed on excellent volume to 24. That has shares a touch overheated here, so a step back wouldn’t be unexpected.
Take any retreat as an opening to add shares, since with NUAN at an all-time high at these levels, there’s no overhang of sellers to put the brakes on rallies.
Learn more about this financial newsletter at Mike Cintolo's Cabot Top Ten Report.
