iPods and iPhones are merely going to be gravy in the next couple years. Ask anybody under the age of 35 the next kind of computer they're going to buy. Or just walk into a coffee shop. The day of the PC is fading fast.

2008 will finally be the year that all the dinosaurs trade in their CRTs for digital TVs. With all the networks going digital in 2009, media attention on HDTV should start growing heavily in '08, which will also be buoyed by the hungry hungry movie studios who need help selling their high def DVDs and get back on the growth path. BBY wins from both. Flat panels should start flying off the walls and take plenty of expensive cables and home theater systems with them. And then there's the growing inclusion of Apple sections within their stores... Can't wait to see how this helps the line.

China is the 2nd largest market for internet users in the world, and its economy is beyond booming. This leaves an incredible potential trajectory for e-commerce in China, which should yield Google-like growth for Baidu over the next few years. Current market cap is under $10 billion, around 5% of what Google is worth. And perhaps most impressively, it's handily beating Google at its own game in China, continuing to command ~60% of searches. Might have MSFT licking its lips. I wouldn't be surprised to see an investment from them. Selfishly, though, I hope they keep their hands off until BIDU really takes off.

Here's a perfect case of irrational markets. ETFC marked down its mortgage portolio by about $250 million (Sep '07), yet the stock is off nearly $6 billion in market cap since July. The markets have sold off half the market cap, based on a relatively minor, short-term, and one-time impairment. It's been sold off like a broken bank, rather than a slightly bruised brokerage, which is what it is. Markets may be irrational but hopefully finance CEOs are not. If one of them doesn't step up to buy E*Trade before they bounce back into the 20s, they'll be missing an incredible opportunity. While the big banks are sniffing around Bear Stearns right now, the brokers should be circling in on ETFC.

This is a company that makes BILLIONS off of simple text ads that support e-commerce, which is still a very small piece of all commerce. With the coming convergence of internet and television, Google is best positioned to capitalize and claim an ungodly clip off of all of the commerce that is fueled by it. And that's just in their core business. If I had to bet money on the company that would be the first to $1 trillion in market cap, it would be the Goog.

This is a company that makes BILLIONS off of simple text ads that support e-commerce, which is still a very small piece of all commerce. With the coming convergence of internet and television, Google is best positioned to capitalize and claim an ungodly clip off of all of the commerce that is fueled by it. And that's just in their core business. If I had to bet money on the company that would be the first to $1 trillion in market cap, it would be the Goog.

Good ole Glaxo. My defensive healthcare pick. I like it because it's European (read: favorable exchange rate), they make Alli (the weight loss pill that has huge potential), and they've stepped up the game to develop an anti-malaria vaccine to help Africa, which is just plain good.

My stateside spec play, in the land of biometrics. One of these days all of our keys will be replaced with touchpads, we'll press our thumbs instead of swiping our debit cards, and we'll unlock our PCs and cell phones just by touching them instead of entering passwords. And before that day comes, I wanna be holding the stock that made it all possible...L-1 Identity Solutions. It's worth a billion today. It'll be worth $100 billion someday.