Industries – Telecommunications: Second

In second place for a third year running is Hitoshi Hayakawa. The sector is beginning a new eight-year cycle, the Credit Suisse analyst explains, in which evolving technology drives revenues and profits. “The last eight-year cycle was [second-generation] phones to [third-generation] phones, and this time around is [third-generation] to [fourth-generation], plus smartphones,” Hayakawa says, noting that smartphone penetration in the U.S. already is 65 percent but in Japan is only about 37 percent. Hayakawa’s top picks for the year include two Tokyo-based mobile-services providers, KDDI Corp. and SoftBank Corp. However, the latter’s share price will be affected by the outcome of its pending acquisition of Sprint Nextel Corp., he adds. SoftBank is offering $20 billion for a 70 percent stake in the U.S.-based carrier — representing the largest overseas takeover by a Japanese company. The U.S. Federal Communications Commission is expected to approve the merger, which could be completed as early as May. — P am Baker