Another all-time high today and the DOJ is looking friendly on them. They should because they are a speck compared to IBM and Microsoft.

That can’t last. If I was a start-up in the space, and there are lot’s of them , I would want to sell to Nuance over IBM and Microsoft. Less chance of being miserable and now Nuance has capital to pay cash in the space for the right deals. I really believe a juggernaut is in the making.

Or not!

I don’t necessarily like convertibles and acquisitions, but Nuance is trying to remain the outrght leader in the space.

The acquisition of Tegic from Time Warner seems like a good idea. I have to wonder what the hell Time Warner was doing with a business like this in the first place (text recognition and predictive text). If a management team is capable of good acquisitions (Cisco), over time, you see great results.

I am sticking withe the stock and may add more if/as it moves higher.

I don’t think subprime and housing issues will kill this space.

It is the best pure play on Speech recognition and they have been executing quite well.

Tomorrow we find out if their acquisition spree is doing well. I am sitting tight. Motley Fools has this piece .

Everyday we move forward is a step closer to better speech recognition products. That’s just good.

Disclosure – Long Nuance

That’s good! That’s what all time highs are. Lot’s of happy profitable shareholders sipping Lattes and counting their money and discussing how smart they are.

All this is true except except the smart part. All good things come to an end.

My gut says this one is just getting started though. I have a gigantic gut these days.

Disclosure – Long NUAN

Looks like a good day for some of Wallstrip’s tech stocks. Apple launches their TV, Nuance climbs above 15 and Adobe is nipping at all-time highs.

I will add more Adobe if it closes at an all-time high.

Elsewhere – SIGM – which is a chip stock I have since the high teens is testing $30 today and looks poised for big gains. I am not adding because it is a component play and these end badly :) .

Best of all is Fremont (FMT), the sub prime lender which is now back above 10.

Disclosure – Long – FMT, ADBE, NUAN, AAPL, SIGM

Scratch the stupid bubble years and this stock really hit all-time highs this year so screw my rules on this one :) . At $25 and change it’s pulled back nicely and offers an entry point I will take for the long-term.

As for Nuance, Om Malik tells me that the Microsoft/Tellme deal is good for Nuance as it means more royalties. I have no idea and have not had time to fact check the details, but I trust his knowledge. This trend is solid.

Disclosure – Long Cisco and Nuance

Check out today’s NUANCE show up front on Yahoo Finance . Same for Autozone .

This is great news for the Wallstrip brand obviously and TheStreet and for bloggers and vloggers looking to follow in our footsteps. It can be done.

The web is an amazing opportunity and SEARCH is early in it’s possibilities despite the haters.

I am not an early adopter of voice and hate the freaking voice prompts I deal with everyday as much as you, but I might as well profit from it.

It’s interesting tming of the show as CNET is reporting tonight that a competitor, TELL ME, may be bought by Microsoft . Michael at TechCrunch has more . At $800 million, Microsoft is not messing around.

Nuance (NUAN) is not a cheap stock. It trades at over 5 times sales and they are obviously banging heads with Microsoft. Good thing Microsoft sucks :) .

For the aggressive at heart, this stock and industry may be for you.

Brian has a detailed look at the technicals for those looking to initiate a position:

I am interested to see how everybody feels about this one. The stock has few believers.

They are now using their stock to make accretive acquisitions . What strikes me about the BeVocal acqusition is Nuance’s take on next year growth – 300-400 percent top-line. I take that with a grain of salt because it is coming from the home team, but I am happy to be long the leader as they sneak up on the world.

Disclosure – Long NUAN