What the experts say

What the experts say

Buying into mobile services

When Nokia made its $8.1 billion offer for digital mapmaker Navteq in October, investors wondered one thing, said Michael V. Copeland in Fortune. “Why pay so much?” What they should have been asking was how they could get in on the underlying trend: location-based services. Ever-mobile consumers are paying for the services and devices that help them map their way or pick a restaurant, and companies see them as the next frontier for targeted advertising. The U.S. market for location-based applications is expected to swell from $118 million today to $3.2 billion in 2010, according to projections by International Data Corp. Mobile gadgets, meanwhile, could be worth $14 billion in 2010, up from $7.5 billion today. Nokia, Google, Microsoft, and Yahoo all hope to capitalize on locationbased services. Two slightly below-the-radar companies that could profit from this trend are SiRF Technology Holdings, the world’s largest GPS chip maker, and Broadcom, a “new entrant” in the GPS chip sector.

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Stocks even Gisele could love

The U.S. dollar has dropped so low that Brazilian supermodel Gisele Bundchen reportedly announced she wants her paychecks in any currency but the greenback, said Thomas M. Anderson in Kiplinger’s Personal Finance. “Hard to blame her.” The dollar is trading near record lows against the euro, the Canadian dollar, and the British pound, and currency experts don’t foresee a bounce anytime soon. “But what is bad for Gisele is good for a number of U.S. companies,” including DuPont, IBM, and Johnson & Johnson. All three companies generate a large share of their revenue overseas. In countries where the currency is strong relatively to the dollar, a weak dollar translates to lower prices, which in turn helps boost sales. Investing in these companies is one way to hedge against a falling dollar.

Appealing your property tax

Home prices may be down, but in many markets property tax values are based on prices from the market’s peak, said Anne Tergesen in BusinessWeek. This tax whammy has prompted homeowners to appeal their taxes in record numbers—and created a new business niche. “A miniindustry of consultants, attorneys, and real estate agents has emerged to assist homeowners in preparing appeals.” In fact, though, you may be better off going it alone. You’ll save the fee, which can amount to as much as half of your first year’s tax savings. You may also have more success than a pro. Some appeals boards are more sympathetic to homeowners who represent themselves, according to James Lumley, author of Challenge Your Taxes. Hiring outside help, Lumley says, can “raise the hackles of local officials.”