Standing in line at the Apple (AAPL) store recently, waiting for the latest iPhone, I thought back to 2007.

It was a line outside the door of an AT&T store on a hot June day here in Baltimore that I was in that day. It wasn’t a huge line – maybe 50 people – but the anticipation was evident. The first iPhone was launching that day, and pretty much anyone who followed tech had a strong sense of the possibilities it represented.

And boy, did it ever deliver!

I thought about this and my mind wandered to the phone I carried on that day. It was a Motorola V230 flip phone. You could make calls on it. You could tell the time on it. If you were extremely patient, you could get the O’s score on it. To text you had to punch a number key multiple times to find the symbol you were looking for.

In short, June 26, 2007 might as well be a revolutionary holiday for the tech industry. Think of how much has changed so dramatically since then. Back then mobile data was hardly a thing. Today we use our cell connections more for text, Facebook, Youtube, Twitter, Uber, Snapchat, and numerous other things than we do for voice… by a WIDE and growing margin, too.

And the applications for always available cellular connectivity are almost endless. We’re just seeing the start – industry analysts expect 50%+ *annual* growth in mobile traffic over the next 3-5 years! Today’s stock is well positioned to capitalize on this still emerging market. Let me tell you about Skyworks Solutions (SWKS), a current member of both our Magic Recipe and Quality Growth Spells.

Enabling Small, Thin Wireless Devices

Skyworks Solutions is a semiconductor company that develops and sells integrated solutions for wireless connectivity. Their products allow customers to develop ever smaller and thinner devices with multiple different connectivity options, in a power efficient manner.

Skyworks has 3 general groupings of product sales. Integrated Mobile Systems consists of the chipsets just mentioned for smartphones and tablets and comprises nearly 60% of sales. Broad Markets are the company’s component sales into the evolving “Internet of Things” (IoT), a ‘broad’ term referencing the vast array of devices using wireless communications, including automobiles, wearables, connected home devices, industrial equipment, etc. Broad Markets is just over 20% of sales. The remaining 20% come from Skyworks’ older business selling power amplifiers, a key component used to increase signal strength in order to improve reception.