hi I'm Jimmy in this video we're gonna walk through the top 5G stocks not just
in the US but around the globe our goal is to see if we can identify the best 5G
companies either that are directly related to 5G or indirectly related
that we can by going into 2020 and beyond now just so we're on the same
page 5G is the fifth generation of wireless networks and it's expected to
be a real game-changer it's supposed to provide speeds over 4G LTE that can
range anywhere from 10 times the current speed to a hundred times the current
speed they say that when we're connected to a true 5g network we could download a
full high-definition movie in somewhere between 1 and 3 seconds but 5g does have
its limitations the biggest one comes in the difficulty of setting the whole
thing up so when we think about the 4G network well what while his companies
had to do companies like Verizon or AT&T what did they have to go when they were
setting the whole thing up well essentially they would set up cell
towers and those cell towers sent out signals and when we look at the radio
wave as an example the 4G would land somewhere in that area and usually
that's some are less than 6 gigahertz the advantage to that is that when the
towers go up they send out a fairly strong signal and up to this point
4G has served us fairly well but as more and more devices come online 5g is
supposed to be able to handle way more devices way faster but crucially the 5g
signal operates further down the spectrum and the advantage to that is
that there's way more bandwidth over there and it should be significantly
faster but it can't travel nearly as far as the lower frequencies can and it
could be blocked easier by large objects like aw building so what providers are
forced to do is they're forced to put up way more smaller cells as compared to a
broader tower like a 4G network now obviously this map isn't a scale I'm
simply illustrating how it would work the point is that where you would just
need one cell to cover a certain area you're going to need significantly
or 5g sells not only to get around the obstructions that are could be in the
way but also because the signal doesn't travel as far so what the very extensive
5g Network calls for is a ton of upfront cost and that's currently what companies
like AT&T and Verizon are currently laying out as they're setting up now at
the end of the day there'll be huge long-term beneficiaries of the 5g
network but I do think it's important to point out that a fully scaled 5g network
is still many years away now once it's here wireless companies will be able to
take the 5g network that they build and offer a variety of products by slicing
the network using software updates so it's likely to produce a greater return
on invested capital compared to something like the 4G network one of the
key advantages to 5g is that it's going to be much more software based than the
hardware based after the initial setup the the 4G network is much more
restrictive in what you can do with it whereas 5g is going to be much more
expensive I believe it was a CEO of Sprint that described this nicely when
he said that 4G was where you could add individual lanes to a highway that hand
could handle a certain number of lanes 5g is very similar except it can handle
more lanes and in this case you can stack multiple highways on top of each
other without any issue so clearly companies like AT&T and
Verizon could be solid long-term beneficiaries full from the 5g network
but we should also consider some of the smaller plays I think of a company like
t-mobile and I think it's possible that t-mobile as it tries to pick up ground
in the 5g network where they can gain ground that perhaps AT&T and Verizon
don't initially focus they could essentially snatch some of their overall
market share and that could help some of the smaller guys grow so that's another
good one and I've actually got three favorites coming up in the end but these
are all ones I think we should consider well we can also look at the supplier
space a company like Corning is a good example Corning has already signed a
supply agreement with and to supply optical fiber which is
necessary to build this type of infrastructure now I'm actually a big
fan of Corning in general I believe that they have a solid business outside of 5g
and what they're doing in 5g should help continue to support their growth overall
but I think at the end of the day Corning could be a good sort of a side
hustle in this whole thing another company that's sort of in line with this
and somewhat of an underdog because a lot of people are relying on it and
that's Nokia now Nokia is traded in Europe and in the US and many of us
could get involved in Nokia if we want I believe it's a cheaper stock a
lower-cost stock not cheaper but a lower cost and right now they're heavily
reliant on the success of 5g and they're playing a giant role in it so I think
that that's another complimentary one to a company like Corning ok but now I've
got three favorites and I think could do quite well as 5g continues to come to
market to come from the emerging markets and one focuses on the developed markets
but we can buy them all in the US and they're also traded in other countries
around the world now I found these companies what I was
looking for us I was looking for companies that had a potentially strong
hold on their piece of the 5g market in their respective areas
the first one is global telecom global telecom is a provider of telecom
services in the Philippines now what I like about them is they have pretty good
growth from a revenue perspective and as we could see they're expected to
continue growth over the next couple years at least according to analyst
estimations now on top of that global telecom has a decent balance sheet they
have a relatively strong profit margins compared to most types of companies in
this industry and most importantly they have limited competition in the 5g space
in their home market that's probably why they have pretty good margins ok next up
we have China Mobile now China Mobile has seen a decent amount of growth over
the past couple years and once again they're going to be huge beneficiaries
of the emergence of 5g now China Mobile has been spending a ton of money on 5g
cells and they've recently upped the amount of cells 5g cells that they
accept to put up this year they opted the
target amount China Mobile has the largest mobile consumer base in the
world and they've been shifting their business
from primarily voice to more data centric now if they're able to scale the
5g network in China which they seem well positioned to do well they're likely to
have some solid growth for at least the next few years now you may know that I
couldn't really find any reliable animal analyst projections but overall it still
seems that their growth has been decent so far another good sign is that the
China mobile ad our that trades in the u.s. currently pays the dividend yield
of about four and a half percent and just so we're on the same page in ADR is
short for American depository receipt and basically it's when a US bank a u.s.
depository bank which they represent a certain number of shares and essentially
they list their own listing for the representation of those shares on a US
exchange so when you buy an ADR you're essentially buying the bank's ownership
in the ownership of the company so atrs can be an easy way to buy shares of a
company or get access to the shares of a company that note that don't normally
trade in our own country so we can go buy China Mobile on the US market using
the ADR or in Hong Kong which is their home market they also trade on a
European exchange I believe they trade in Germany either way there's
opportunities to jump in above okay on to the next company and that's KDDI KDDI
is the second largest telecom company in Japan behind NTT now they have a fairly
strong balance sheet and when we check out their earnings per share well we can
see that they've had some decent growth but what I like most about KDDI is that
they seem to be bringing their business right in line with what 5g brings to the
table they've recently started offering Netflix to their customers just as an
example I think this is a good sign for them and probably Netflix as well but
we'll get into that in another video then what they've done to help achieve
their goal is to try to blend both 4G and 5g as they try to expand their 5g
network now I actually think that Japan is well suited geographically for 5g
expansion since it's a smaller country than a country like the US or China
plus they're already moving in the direction of getting many of their 53
million or so subscribers plus I believe they have another 39 million homes and
business subscribers -- that could all use an upgrade towards the 5g
Network so in the long run I wouldn't be surprised if KDDI did quite well as 5g
continues to develop but what do you think I know I listed a lot of companies
in this video and I have a few favorites and a lot of that is revolved around I
think that they're gonna offer some more growth opportunities than perhaps a bit
more debt-ridden AT&t and Verizon in the US as 5g continues to grow I would
expect many if not all of these companies to do quite well or at least
who benefit from the 5g expansion but what do you think please let me know
what you think in the comments below if you haven't done so yet hit the
subscribe button hit the thumbs up thank you so much for sticking with me all the
way to the end of the video I'll see in the next video thanks