Analyst Paul Mampilly explains how the Internet of Things (IoT) revolution will majorly impact all aspects of our lives, and how investors can benefit from it.
My father couldn’t type. He didn’t really care about learning how to do it, or even how to use his computer. So he never turned on the PC that sat collecting dust in his office day after day.
Yet despite this seeming aversion to tech, he still implemented computerized billing, collections and accounting at the company where he served as chief financial officer. To top it off, when I was 15, he made me take typing and programming classes.
The reason was clear to me: My father saw the future coming, and he knew it would center around computers. He might not have liked the technology, but he didn’t fear it — even when he realized it might put him out of a job.
Instead, he figured out how to make it work for his business and his family.
It’s something I’ve taken to heart, particularly now, since we’re on the cusp of the greatest tech revolution in modern history. This revolution offers the promise of incredible benefits and phenomenal financial rewards.
So now we all have the same decision to make as my father: We can fear the changes, or like my father, we can embrace and benefit from them. And there are a few great opportunities out there for doing just that…
The tech revolution coming our way is in the Internet of Things (IoT). It’s a tech revolution of “smart” machines that is going to reshape how we act in our daily lives — everything from the ways we make our breakfast (smart fridges) to how we take our kids to school (driverless cars).
Simply put: It’s going to infiltrate every facet of our lives.
That’s why the Internet of Things revolution is going to create massive winners in the stock market. And it’s why those who choose not to capitalize on it are akin to the investors who didn’t buy into the beginning of the Internet and computer-networking revolution of the mid-‘90s.
You may remember the types of profits traders saw back then: Early investors in Cisco Systems, for example, saw their stock go from the equivalent of about $0.14 cents in 1990 to $70 a share in 2000. That’s an enormous gain of 49,900%. In other words, if you had put $1,000 into Cisco in 1990 at its IPO on February 16, 1990, every $100 would have been worth $50,000 by the year 2000. If you had a bit more and put in $1,000 or $10,000, shares would have been worth $500,000 and $5 million.
These are astronomical gains that investors made simply from knowing how to be in the right place at the right time.
And now there’s a new “right time at the right place” scenario … Recently, I’ve noticed that the market for Internet of Things IPOs has started heating up.
An Ideal Investing Scenario
It began earlier this year when an IoT company called Impinj Inc. (Nasdaq: PI) celebrated its initial public offering (IPO).
Investors who bought in picked up shares for $14 on July 21, 2016. On the first day of trading, Impinj’s stock soared higher by 32%. By the end of September, shares had skyrocketed to a high of $34.43 … a gain of 146% in a bit more than two months.
And these massive gains came because investors are beginning to realize the incredible potential of IoT technology, which Impinj’s business is set to benefit from.
Another example: On September 29, 2016, IoT company Nutanix (Nasdaq: NTNX) launched its IPO and distributed shares at $16. On the first day of trading, Nutanix shares skyrocketed by as much as 146%. On Day Two, Nutanix’s stock jumped even further, hitting a high of almost $47.
So if you bought into the IPO, you would’ve realized whopping gains of 192% in two days.
Clearly, it pays to be the early bird.
Join the Tech Revolution
Now, to be fair, both of these stocks have pulled back from those highs. So you shouldn’t just run out and buy up their shares because of their successful IPO launches. Instead, just as Wall Street is a prognostication machine — so should we be. Instead of looking backward, we should be looking forward — at the IPOs coming down the pike that may deliver similar types of massive gains for early investors.
And I already have a few on my radar.
For example, my sources tell me about three IPOs to be on the lookout for. They are: BlackLine, Quantenna Communications and GDS Holdings. Once again, you shouldn’t blindly buy these companies at their IPOs just because I’m listing them here. But you may want to do some research and keep them on your watch list.
Because my point is this: You should be positioning yourself to benefit from the incredible potential that this revolution is poised to deliver. You can do this by keeping an eye out for promising IPOs, or you can even do it by getting broad, general exposure to the tech revolution by investing in certain funds.
Two of the recommendations I give my readers are:
Be sure to check them out. The savvy investors are the ones looking for ways to benefit from burgeoning opportunities — just as my father did.
This article is brought to you courtesy of The Sovereign Investor.