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You've heard stories about him before – the savvy stock analyst who gets his hands on the hottest new smartphone before Verizon's first bulk order ships… only to smash it to bits so he can see what's inside.
The idea is simple: If you know which company manufactures a small – but key – component in the product, you can invest in it and make a bundle.
It's true. In technology, the people who manufacture the devices within the devices make a huge amount of money. Their investors do, too… especially when they get in right at the beginning.
That's why this is such a big moment for us.
Right now, I'm looking down the barrel of a device that will be made by the trillions – and in demand in every single sector of the economy. From agriculture, to smartphones, to eyeglasses, and even to diapers.
Imagine a device that in the next two years will become ubiquitous. Meaning that within five feet of your person, at any one moment in time, you'll likely find 20 or 30 of these devices.
That's how big this revolution is. I want you to remember that you heard it here first. I want you to see the numbers, too.
Getting in on this now is like getting in on Intel in 1970, when the $110 billion giant we know today sold its first chip.
Only, this is bigger…
We're About to Connect 500 Billion Objects
There's a new term people use to describe this sea change: the Internet of Things (IoT).
Basically, it means a variety of sensors will transform the world's objects and materials into smart, interactive devices. And this new wave that's already cresting will cause demand for sensors to skyrocket.
Cisco Systems Inc. (Nasdaq GS: CSCO) says IoT will connect a minimum of 500 billion objects. Each of them will have at least one sensor, and many will have 10 or more.
And the demand isn't tied to objects of "high tech." Everything from forklifts to watches will depend on these sensors.
So let's take a closer look at this surging sensor demand, starting with one of its more familiar applications…
Smartphones:
100 Billion Sensors (and Growing)
It's sensors that allow you to rotate your phone and have the screen turn with it. They can measure and compensate for the angle of tilt as you walk while at the same moment pinpoint your exact location, allowing you to be truly mobile.
Currently, there are a total of 5 billion cell phones in the world. Of that, roughly 1 billion are smartphones. But users are moving from basic cell phones to smart ones at a dizzying rate. Just among Android devices alone, 1.5 million are being activated every day.
Overall, industry forecasts predict the world will soon see 5 billion smartphones. And as the number of apps explodes, these phones will require as many as 20 sensors each. That totals a minimum of 100 billion sensors in this sector alone.
And remember, that doesn't count the sensors embedded in either tablets or laptops. Nor does it count the sensors in mobile commerce transponders that will soon cover nearly every checkout station in the world.
Auto & Infrastructure:
1 Billion Sensors on Our Roads, Billions More In Our Roads
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About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.
I am contiually buying and then abandoning ( not renewing ) financial publications precisely because of articles like this. You paint a great picture of a new technology, state it is creating a great investment opportunity and then omit the name of the company hoping I will through more money at a related publication. I"m tired of the bait and switch. Please give some value to you article. Like the old Burger King commercial said "where's the meat/"
We're sorry you feel that way, Rick. But if financial publications like Money Morning gave away all their best ideas for free, we wouldn't be in business at all. That said, plenty of the articles on this site do provide actionable investing ideas. I encourage you to look around (click around) a little more.
Hello and thanks money morning newsletter or mmn. I find some great insight in reading your stuff. I trust in only one thing, experiance. Making money is not one of then. But I am a I.S. and love to know how things work. So thank you for your time, and keep up the good work.If people would have listen to who is making these sensor, just buy one of the phones mention and take it apart will give you the answer or better yet. Posie as a phone tec. And tell them you ran out xyz sensor or better yet ask for the manufactor(s) list with names ect. Cheers /china
So what is the name of the company?
I fully agree with you at the bait and switch level…however we have the freedom of
choice or the exercise of discernment…. if greed is the motive don't subscribe to
anything…if genuine curiosity and interest is the motive, go ahead and if it is not
your cup of tea cancel later. No problem to a good faith move in putting your money upfront first.
I AGREE
I generally agree with you Rick. I particularly dislike the endless promises that it is worthwhile to keep reading only to find that 5 to 10 minutes later they want a few thousand dollars to get the information they keep to themselves. They have no respect for my time. I have quit being fooled and now just delete.
On the other hand, they do offer some good advice, and I bought one of their recommendations just today; time will tell. So I need to ignore their BS (baiting) and look for what I could use.
He's talking about Broadcom. BRCM.
Keep guessing.
I'll be the first one to point out that Money Morning does actually provide some pretty incredible investing advice, some of this does come at only the expense of time required to read the article! Opportunity cost you could say! Furthermore, of course they cannot always give company names, after all, they are in the financial world. Have to make money somehow! So Money Morning, keep up the good work!!!
I agree with Rick. Subscribers come onboard due to promises presented by other websites or emails. They say things like comprehensive inside information … quality picks for your investing activities … guarantee refund – no questions asked – if the publication is not a perfect addition to your investing research.
So, somewhere in that lovely spotlight on sensors, I should have found at least the ticker symbol for this amazing stock. No ticker … no subscription. I intend to follow through on that promise.
Julie
I'm feeling sick from comments here, first I thought I was paying for Money Mornings "best ideas"
and "investing research". Now I'm seeing "Nova-X Report" maybe I am a strategic tech investigator also or we just watched the same PBS programs.
Ticker symbols was in my hopes to jot down and I've "clicked around" so I'm holding back. It seems to me more work is put towards the writing than research, but I'm just a farmer. My place smells like manure but there's money in it, knowing how deep not to go to get it is by choice.