Hot Market or Sitting on Your Hands?

This market sucks.  And that's why I love the markets so much...sometimes they encourage you to go read a long non-business book, play a PopCap.com game, or take a long hike with your kids.

For reading, I've been reading J. M. Barrie's Peter Pan to the kids for bedtime reading.  It's free via the iBook store, and it's a cool un-adapted-for-new-audiences story. For PopCap I'm stuck on Plants vs. Zombies, a delightfully maddening title which can be a source of wasted hours...or a rapid training ground for young minds eager to unknowingly learn the military arts of asset allocation, supply logistics and battlefield strategy (that's how I explain it to the boy's Mom... ;-).  And finally, hiking, well heck, its Summer!

Personally, with the markets, I'm finally in a holding pattern.  No buying, no selling...and it's about time too.  I've been way too "day trader" (though, not really), and not enough Berkshire Hathaway buy-and-hold.  All my options have months before expiration (hopefully that's good), and stocks are locked down to the bare essentials: FB -- I bought in a 43, but kept buying down, so that I'm about even now -- and CROX, which I've considered a long-term holding in a fairly sound globally-based retail gamble.

Now, having said that, I asked my friend what he thought of things - here's what he said:

me:  What's the hottest game in this market? new housing? or sitting on one's hands? :-)
he:  companies that are mainly in u.s. markets that provide dividends.
me:  may I quote you on that for this hot little finance blog I'm helping with? (I won't use names...)
he:  sure
he:  what's the link?
me:  you may have heard of it:  http://swansandcrows.blogspot.com
he:  hmm
he:  i've heard about them somewhere.....

What do you think - are American dividend plays where all the actions at, or housing (as new home sales were up a bit for May), or AAPL (not RIMM), or nothing at all, sitting on your hands? Leave a comment, let us know.

..TS.

RIMMworld

There has been no more pivotal point for RIMM than it faces today.  Way too cliche to even say anything about being on the "rim", Research in Motion stands atop a pile of subscribers, scrambling to retain them with edgy products that're merely playing catchup.  Similarly, I've been in and out of near-term 2012 RIMM Puts trying to play catchup with a market that's been pushing the company down from Mt. Olympus since July of 2008, not allowing the global recovery to (barely) affect RIMM's Belerophonesque plunge.  My catchup plays have been about as eventful as RIMM's ability to combat the AAPL/iOS juggernaut.

As Tamara Rutter reports on Fool.com in "What Blackberry 10 Really Means for RIM" the introduction of the Blackberry 10 at the company's annual partner conference is met with mixed emotions: those stuck in the Triassic with their love of a physical keyboard (guess you can figure the colors I fly) dissed the keyboard-less demon, while AAPL, Samsung and Motorola licked their chops, ready to attack via their respective IP law firms a competitor who may or may not have paid for the relevant technology licenses.  Ms. Rutter points up the historical nature of RIM as "innovative", yet it took them 3 years to produce this tablet phone.  While we can all see the mass of Microsoft's ocean liner that gives seasoned captains the world over the willies in figuring out how to steer the behemoth, RIM's relative tiny size seems like a PT-boat pulling a submerged iceberg (which is probably the combination of their installed base with their proprietary network).

I closed out my Puts today, figuring I'd just take the friggin loss and stop trying to guess what this silly company was gonna do next--therefore didn't jump on the potentially cheap Calls that beckon if the 10 is RIMM's savior.  The touch-screen 10 may save them, but are there content and apps ready to wow the public?  Does their tablet phone have a halo device, ready to serve the function of AAPL's iPhone vis-a-vis the Mac computers?  I truly think that RIMM has bit the dust, is beyond the event horizon, but there are far easier ways to make money than trying to be a Phillip Falcone with RIMM.

..TS.

The Developing Story of Crocs - You Have an Option

Like any other growth company that started life as a fad, Crocs has its share of detractors and supporters.  The detractors are sure that the company is still just a fad, based on the sales of their fad product, and the next quarter holds certain ruin, so "Sell, Sell, Sell!".  The supporters may wear the shoes, have read and understand the company's financial documents, and see tons of potential in all those Croslite-shod feet worldwide.

I've undeniably thrown in with the latter crowd, with both equity and several different OTM calls (Jun12 at $21, Jan13 at $35 and $45). I've been long Crocs since mid-2008 when the freefall was still in effect, and have been reading positive things from the quarterly & annual reports all the way back up from the depths. Matt Andrejczak has good points from the recent quarterly report in his article "Crocs should quit quarterly outlooks: Hodges Capital", and he soberly points up some of the reasons why the equity tanked immediately following the report.

Ideally, you know, people should just sit on an equity position, like CROX, through thick and thin while Mr. Market sorts out just when the reality of an increasingly valuable company should be priced per it's value.  But we're all impatient for the quick profit, which is why I'm sure options were created.  While the underlying equity goes up or down a couple of percent, the options can move much faster, netting a profit (or loss) for the cautious, wary options fisherperson.

But Rocco Pendola, writing at TheStreet.com, really sums up the option strategy (game) in the title of his article "You Can Lose It All With Apple Options".  If you're truly not equal to losing your entire investment very quickly--as Call holders found with both CROX and AAPL over the past week--then you need to re-evaluate your use of options.  If people are messaging you asking when the best time is to exit a position, then they're no better situated than Croesus, king of Lydia, when he got the prognostication from the Oracle of Delphi "If you cross the river, a great empire will be destroyed."

..TS.

So what if I called the earnings release

So I called the earnings release.....Yea..Wow....Great....
But, the most important thing is can I repeat that call. It was a mixture of knowing the sentiment and knowing what to ignore. [ or maybe ignorant of what I was suppose to know] Anyways, coming from a left-brained analytical background, I usually want to know everything about a stock before I jump in.

What others' don't know
My approach has always been to figure out what other traders don't know about a stock or special situation. But the lesson here is that traders, at all levels of experience, were watching what they were suppose to be watching. They were following the rules of prudent day/swing trading like they were suppose to.

Don't get me wrong. I'm not advocating that you don't use safe guidelines or rules. But there are different levels of how deeply a trader gets engaged in data and facts. Each level has a self-interest and motivation. Each level has a standard set of best practices learned through experience and knowledge.

Invert the Process
I will paraphrase the adage made famous by Howard Marks, What do I know that other trader don't?
Invert the thinking process into the following. What knowledge do others have that they should be ignoring?

At a different level, what knowledge exists that other trader's are totally ignorant of?

Regardless of experience, the other half of the world that is right-brained and guided by intuition may be looking at something from a completely different point of view.

OmniVision action today

I think OmniVision (OVTI) is going to pop today, after Apple reports its quarterly earnings report.

I will write more after tonight's market close.

Research in Motion Mobile Fusion

Research in Motion(RIMM) is well known in the Enterprise segment of the smartphone mobile device segment.  Their flagship BlackBerry brand uses a  proprietary browser and operating system to insure a secure, unfragmented code. However, the smartphone segment is changing.

Research in Motion(RIMM) has just released a product that is in response to the new trend in the smartphone industry.  This allows IT personnel, in conjunction with the Enterprise Business Server (BES), to provide messaging, email, virtual network and browsing for any enterprise. { No more IT banning of browser software or apps }. Ever since the rise in Android and iPhone devices, the user has not been tied to a platform or operating system, and can pick and choose the features she wants. The customers and users in this industry have evolved into the "bring-your-own-device"  or "BYOD" movement.

The newly released product is the Mobile Fusion device management product. Mobile Fusion is described on the Blackberry website as:

BlackBerry® Mobile Fusion helps make managing mobile devices faster, easier and more organized than ever before. From a single, web-based interface, provision, audit and protect mobile devices, including BlackBerry smartphones1, BlackBerry® PlayBook™ tablets and devices that use iOS®2 and Android™3 operating systems.

With this product customers can buy any phone they want and it can be managed by the  enterprise. An estimate of enterprises global spending on fixed and mobile communications services approach $425 billion annually.


The new barrier to entry is now the carrier and its associated sales channel.  
Now prime real-estate shelf space and exclusivity in the channel outlet will determine success of a phone device.


Existing Competitors in the Mobile Device Management (MDM)
Other than BlackBerry's BES suite there are others in this space.
Read MDM wiki for more or do a search on Mobile Device Management

Two examples are highlighted below:
MobileIron
Tangoe, Inc. recent IPO (TNGO)

Fake it till you Make it

As a value investor we are always looking for a reflection  of the quality of management. Do the executives have the shareholders' interest in mind when they make decisions? I am really intrigued by what is happening at Research in Motion (RIMM). A new CEO, Thorsten Heins, has recently taken the reins after being hand-picked by the two original co-founders of the technology company. The two co-founders, originally acting as co-CEO, moved to the board of directors.

The new directive from Mr. Heins seems confusing. If you listen to the latest conference call, the audience can seek whatever message their viewpoint supports. Of course, Mr. Heins has only been on the job for 10 weeks now. So his insistence that he is reviewing everything that would be in the best interest of the company has wisdom. He does seem to have cleaned house and forced several top executive to depart. One of the co-founders, Jim Balsillie will retire, either by force or design.
I hope Mr. Heins has the fortitude to carry-through the needed changes.

Research in Motion new directive in his words are {or at least my interpretation, and call me on it if I'm wrong}

• BlackBerry Enterprise Service Business - Enterprise services
• Prosumer market - which is characterized by users who use the device for personal and business
• Consumer market - "bring your own device/phone" end user market

No, can't differentiate their new strategy from that..... Let's try to differentiate by revenue then:

• Services
• Software
• Hardware
• Other

{my interpretation, and call me on it if I'm wrong}
Mr Heins was talking about reducing the broad array of phones from the 7 new BlackBerry Smartphones to 3 or 4. He was talking about a possibility of licensing the software,  reducing or eliminating the hardware & accessories, repair, maintenance and warranty programs to a strategic partner. Maybe a joint venture? That's a big chunk of the current revenue. It will be interesting to see the evolution in the next 6 months and in the release of BB10.

Here is the elevator speech from the rim website:

RIM is the leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and service that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to information, including email, voice, instant messaging, short message services(SMS), internet and intranet-based application and browsing. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services through software development kits, wireless connectivity to data and third-party support programs.

What are RIM's Competitor's Strategy?
A quick glance at the top competitors strategies in the field:
Apple - Hardware & accessories, Software for the consumer; Just branching out to the Enterprise
Google - Software for the consumer - (Android )
Windows/Nokia - Hardware Partnership and Software (Window 7)

RIM - what is next?
Mr Heins was heard to say in the conference call:

"with BB10 we are getting ready not just for the smartphone, ...getting ready for mobile platform for the next decade"

A second look at Research in Motion

With all the apple news lately, what has Research In Motion (RIMM) been up to?

Here is the latest ComScore Report for the last 3 months. It shows that RIMM is still losing market share in subscribers but as an OEM device manufacturer has stabilized.

Maybe they have already ceded a segment of the Smartphone platform market share. Maybe they know what they're doing with the QNX acquisition. How big is the QNX CAR Application Platform market segment?

A quick tour of the QNX CAR 2 application platform

from the QNX community blog:



If year-over-year earnings could stabilize the bleeding and bad press would cease.
Research in Motion(RIMM) will announce year-end and fourth quarter fiscal 2012 results on March 29, 2012.

OmniVision OV5650 & OV297AA - $OVTI $AAPL confirmed on new iPad

It was confirmed on two teardown assessments sites that the camera used on the new iPad (iPad 3) is OmniVision's.

On the  www.chipworks.com site:

"....says that the 5 Mp back illuminated CMOS image sensor in the new iPad is the same, it is the Omnivision OV5650 (die markings OV290BF). Yet again, Apple is recycling as many devices as they can to produce this new iPad."

"The secondary CMOS image sensor inside the new iPad is also a design win for Omnivision. This camera, the OV297AA, is a 0.3 Mp, 3.0 µm pixel pitch CMOS image sensor. Chipworks has seen this on the iPod Nano and the iPad 2."

On the iSuppli teardown site:

"The new iPad camera module design and cost is the same as in the iPhone 4 camera module. The two camera modules cost a combined $12.35, representing 3.4 percent of the BOM."

OmniVision and OV8830

From the latest 10Q from OmniVision (OVTI)

In February 2011, we also introduced the OV8830, our most advanced 8-megapixel image sensor to date, and the first to use our second generation OmniBSI-2 pixel architecture. Implementing the latest developments in BSI pixel technology, the OV8830 combines low power consumption, small die size and best-in-class pixel performance with advanced image processing features. This combination allows the OV8830 to support enhanced, fast frame rate image capture and 1080p or 720p HD video recording, making it highly suitable for feature rich smart phones. OmniBSI-2 technology is our first pixel architecture built on 300 mm wafers using a copper process with 65 nm design rules, which enables a number of improvements over OmniBSI technology’s performance, including improved pixel layout, better isolation, and reduced crosstalk.

It continues with the following:

We also experienced a recent and unanticipated extension in the product development cycle of our OV8830 product. This delayed the production ramp up of this new sensor. Towards the end of our second quarter of fiscal 2012, we started to ship this product in very limited quantities. 

I feel the OV8830 is a perfect match for the iPhone 5. It would set the tone for the next generation of better quality video in the next couple of product introductions from Apple (AAPL). The iPhone 5 is rumored to be released in September. Even if it is released at the end of the year, with a 5 to 6 month ramp-up, production of the 0V830 line could begin as soon as May.

It could even have been squeezed into the iPad 3 production, rumored due on March 7th.

OmniVision Notes

Feb 28th, 2012 Notes

OmniVision products are used in HTC Corp's (2498.TW) EVO and Motorola Mobility Holdings Inc's (MMI.N) Droid X reported strong third-quarter sales.

At least two brokerages raised their price targets on OmniVision's stock, saying the company was on track to recapture lost market share in the smartphone segment.

OmniVision's 8-mega pixel camera sensors should be a major revenue and earnings drivers, said Canaccord Genuity, which rates the stock "buy."

NeedHam reports that OmniVision has lost the iPad 3 slot.

The following is an alphabetical listing of Apple suppliers in 2011. These suppliers represent 97 percent of Apple’s procurement expenditures for materials, manufacturing, and assembly of Apple’s products worldwide. OmniVision is not included as a supplier. This precludes their presents in the Apple products releasing this year. Maybe they will be in the 2012 list, just in time for the iPhone 5.

Why did OVTI emphasize the entertainment division?

First, let me crunch the financial numbers.
OmniVision (Nasdaq:OVTI) is a good value right now. It has been on a 60+ day run. After the 3rd quarter earnings came out Friday, the stock price close for the day at 17.13 yielding the following highlights:

• p/e ~ 10
• book value ~ 14.31
• p/b value ~ 1.20.
• Z-score ~3.67
• fair value price $39.04, a potential of 127% upwards swing [using 14.8 p/e and 1.5 bv]

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
In OmniVision's 2nd quarter 10Q filing it was mentioned that prior guidance was revised down when the company's key customers unexpectedly cutback their orders. This action reduced unit sales of the OmniBSI and OmniPixel3-HS based products and adversely affected their revenues for the 2nd quarter of fiscal 2012.

Apple (Nasdaq:AAPL) is suspected of being one of OmniVision's largest customers. They usually try to get two sources for their manufactured parts. For the iPhone-4/iPhone-4S CMOS image sensors they used Sony (NYSE:SNE) and Omnivision. The Apple  iPhone-4/iPhone-4S  uses the OmniVision's 8-megapixel image sensor based on the new OmniBSI™ technology. There is a rumor that OmniVision lost the deal with Apple on the  iPhone-4S . The iPhone-5 is also rumored to be using Sony and Samsung as CMOS image sensors vendors, replacing OmniVision.

In OmniVision's 2nd quarter 10Q filing I found another sentence which stated the following:

"We also experienced a recent and unanticipated extension in the product development cycle of our OV8830 product. This delayed the production ramp up of this new sensor. Towards the end of our second quarter of fiscal 2012, we started to ship this product in very limited quantities."

The OmniVision OV8830 CMOS Image Sensor  (CIS Technology) is based on their new stacked Back-sided Illumination OmniBSI-2 Technology.
Wait! Extension of product cycle?  I'll explain in the Hard Facts section....

Rumors, rumors, rumors
There is a rumor that OmniVision lost the CIS technology deal with Apple on the iPhone-4S. The iPad-3 is coming out in March and there is no OmniVision production ramp-up for that.

[Edit: I could be wrong. - Robert W. Baird & Co, said Apple's iPad could boost OmniVision revenue by 30 percent over the revenue from iPhone last year. ]

The iTV successor may be release soon and could possibly use OmniVision; However, there seems to be no production ramp-up for that either. The iPhone-5, which is to be released later, is a possibility and the new OmniBSI-2 Technology 4mm width would fit into the new slimmer design. However, that is all speculation. But in the short run, where could the decreasing revenues be generated?


This quarter's earnings
Ok, back to last night's 3rd quarter earnings conference call from OmniVision. Everybody was asking or trying to confirm who the large customer that cancelled their orders was. Everybody was trying to confirm if the rumor about Apple was true. I don't think that is the take-away from the call. When asked what division will increase the most in the near future, the answer was the "entertainment business".

Ray Cisneros, VP of Worldwide Sales explained the product mix as follows:

"In terms of product markets, our mobile phone sales represented approximately 52% of our revenues in the third quarter as compared to 60% in our prior quarter. Our entertainment segment represented 28% of sales as compared to 20% in the prior quarter. Our sales of sensors into the notebook and webcam segment were approximately 8% of sales as compared to 9% in our prior quarter."

Hard Facts
OmniVision has signed a deal with Nintendo (NTDOY.PK) on their new Wii successor, Wii U. It is to be released after March 31, 2012.
OmniVision started mass production of the 0V10630/OV10635 based on  OmniPixel3-HS technology for the auto industry.
OmniVision is in mass production of the best-in-class 720p HD video performance chip.
OmniVision is in a deal with ASUS Transformer Prime Tablet which uses the OV8830 OmniBSI-2 Technology and is considered the most advanced Tablet out in the market at this time.
OmniVision and Sony signed a deal for a Video Camera using the CameraCubeChip design.

Conclusion
OmniVision seems to have other deals which will lessen the risk of revenue declines if Apple changes its mind. It has a very broad range of products. I haven't even scratched the surface of all their competitive advantages.

I have no stake in OVTI.

Tolkien Gold

"All that is gold does not glitter,
Not all those who wander are lost;"

In his classic tale of travel and travails, J.R.R Tolkien teaches the reader many things, not the least of which is how to seek value amongst a seeming cornucopia of treasures.  While gold appears to be the safe haven in these hard times, perhaps it's not the treasure that will serve you best.  Hardworking companies like AAPL and CROX are building both cash and global brands which, while they won't outlive gold, they will appreciate over the coming years much more readily.  Are you ready to limit yourself with the yellow metal, or are you open to far better vehicles for the road?

Consider a contrarian investment such as out-of-the-money GLD Puts as the appreciation of gold accelerates.

[PUT (GLD) SPDR GOLD TR GOLD JAN 21 12 $140 (100 SHS)]

..TS.

Patents Trump Products

Google's bid to purchase Motorola Mobility is a clear shot across Apple's bow.  While on the face of it Google may be seeking to marshall forces in the Android smartphone device arena, "What Google likely wants from the acquisition is Motorola's trove of more than 17,000 patents on phone technology. Google recently lost out" in Apple's group buy of Nortel patents...that won't happen again.

IMHO, however, I think Google will only succeed beyond Apple if they take a page from Apple's book and innovate ahead of the market.  Time will see if anybody can out-Apple Apple.

Unless they tell us otherwise, I think RIMM, NOK and Samsung's collective geese are cooked. Their patent portfolios (and Samsung's flash & screen production capabilities) are going forward more valuable than their products.  They similarly need to out-Apple Apple... but don't bet on it.

..TS.

Don't Panic

Don't panic, folks.

While today may not be the time to jump in on new lows, the next few weeks will be a learning experience for us all.  Corporate earnings will still reign supreme, though we'll be distracted by political intrigue left and right.  If cash is king, look to large ($AAPL) and small ($CROX) cash holders to comfortably lead the way forward, after initial panicky stumbles.

..TS.

$AAPL Spends Its Billions on Green

Look no further for where Apple will be spending some of its greenbacks: on green-oriented PC recycling.  Apple is emailing out RMA (return merchandise authorization) numbers so that customers can return either sellable products (read: recent macs) or non-sellable older machines:

Where does this spend money? Two places:  (1) with FedEx, and (2) with a contracted or inhouse recycler.  Actually, if you look at the environment page on Apple's website, they're putting a lot of thought into the whole carbon footprint equation, and how Apple as an industrial concern can offset their own impact.  Recycling is one method, so you might say Apple is investing some of its billions right back into the environment.

..TS.

$CTRN's Perfectly Good Balance Sheet...

...does not necessarily translate into a company with a happening Income Statement.  Apple is the epitome of a company: reporting down and later blowing analysts out of the water, as in yesterday's quarterly report.  Citi Trends, while well positioned in a niche industry segment and targeting growth with 50+ new stores, seems to be at the other end of the spectrum.  I've run into this before: find a company with a fairly stellar balance sheet, and what seems to be a good business model, but then stumble into near term earnings misses.  This occurred ten years ago with a company now called Woodstock Financial Group (originally Raike Financial Group).  I still hold shares in the severely-underperforming member of the independent brokerage industry--perhaps they'll poke their head above water at some point this century.

Now it's happened again, but with a company that trades more than once a week, and in fact has decent daily volume: Citi Trends, an urban clothing store.  A stellar balance sheet--cash which has grown to $80M over the past 8 quarters, no debt--and a YoY improving income statement...but near term misses and new forecasts that point even lower is deep-sixing any recent investments in the company.  The following shows the dangers in buying calls in such a company... fortunately the calls have expiration dates far enough out that the value could come back (Nassim Taleb's warnings about such thought processes nag in my mind...).

-CTRN 111119 C17.5	CALL (CTRN) CITI TRENDS INC NOV 19 11 $17.5 (100 SHS)	30	$1.05	$0.05	$3,150.00	$150.00	-$3,000.00	-95.24%
-CTRN 111119 C20	CALL (CTRN) CITI TRENDS INC NOV 19 11 $20 (100 SHS)	90	$0.45	$0.45	$4,050.00	$4,050.00	$0.00	0.00%
-CTRN 120218 C17.5	CALL (CTRN) CITI TRENDS INC FEB 18 12 $17.5 (100 SHS)	25	$1.60	$0.35	$4,000.00	$875.00	-$3,125.00	-78.13%

The only reason to get out now is to retain some capital, and the only reason to stay in is to see how the August and November earnings reports for Citi Trends affects the pricing of the underlying and these calls.  Will the underlying price come back up enough to make these phenomenal investments?  Probably not (phenomenal in my mind is 300-500% return, which is attainable with call options), but probably will come back up to break even.  While fundamentally sound, the performance of this company could be something of a clarion call for investors to be wary of lower-income-targeted clothing store industry... while the run-up from 2009 to 2011 may have helped, the recent languid performance of the US economy is reflected here.

A note about sell or trading rules:  Taleb talks in "Fooled by Randomness" about the star traders who crash their accounts by hubristically shunning stop-losses and other sell rules, "knowing" that their chosen direction will win, and then it doesn't.  I've developed just two loss-limiting rules: I sell only when I have another direction to go in which needs funding, and I only buy and sell with limits; too often a retail investor gets caught up in making "market" buys or sells...with the likes of AAPL or CITI it's a no-brainer, but then the investor accidentally does that on weak volume, and gets an atrocious price.

..TS.

Rimm is fair value play

I am very intrigued by the assumptions in the current market that Google's android and Apple's Iphone are going to monopolize the smart phone sector.

Research in Motion (RIMM) has fallen quit a bit lately. Their fair value target is $50.92, using Benjamin Graham's magic formula.

In the news today, RIMM is having their annual meeting to determine whether to replace the current chairmen & co-CEO's, Jim Balsillie and Mike Lazaridis.

Shiny Finnish on Them AAPLs

[guest post by TS]

Folks, sorry for the blogging equivalent to a comedienne's one-liners, but will Apple be making deals with both the devil and RIMM, after their licensing deal with Nokia???  Actually, making deals with the bad guy isn't really necessary for Apple, since their CEO owns a chunk of Disney stock, and the leader of their retail stores is now leading an old name in retail, JC Penney ($JCP), giving the iPod/iPad invention machine a potential new market....

..TS.

Paint Your Own $AAPL

[guest post by TS]

Okay folks, I know you've gotten used to Apple telling you how best to spin your electrons, positrons and other sub-atomic particles so as to avoid quantum malware from infecting your atoms... but did you expect them to sell unlocked iPhones???  Nobody did.  Then, they hired the enemy (Peter Hajas), and the whole world changed.

..TS.