These 2 game-changing actions have just entered my incubator
Band Chris Wood
Note from Stéphane: Today, I’m handing over the reins to my friend Chris Wood, our in-house microcap equities expert.
A few months ago, Chris unveiled his microcapsule “incubator” for the first time. Based on your comments, you loved hearing about the extremely early stage disruptive stocks that Chris is monitoring. So today he shares two other little choices.
As a reminder, technology “incubators” help young technology entrepreneurs to set up businesses. They provide seed money, office space, mentorship, and sometimes even a place to live, usually in return for a stake in the start-up.
Venture capitalists (VCs) often use incubators to access investment opportunities in their very early stages. By supporting these start-ups, VCs can reap astronomical returns, sometimes up to 100,000%.
As far as I know, Chris is the only analyst who takes an incubator approach to recommending microcap stocks. It “tracks” businesses in the start-up phase (sometimes for years), while waiting for these businesses to prove themselves.
The few who “graduated” to become official recommendations in his microcap advice have won big wins. Like 422% on Magnite (MGNI), 251% on Personalis (PSNL) … and 201% on Atomera (ATOM).
[If you’re not a Project 5X member and would like to get aboard, now’s the best chance you’ll get all year, for reasons I explain here.]
Today, Chris shares 2 new incubator actions. Will they be his next 200 to 400% winners? You decide …
These 2 game-changing actions have just entered my incubator
By Chris Wood, Editor-in-Chief, 5X project
When Stephen showed me the comments of the first time i wrote about my incubator in april, I was shocked. I wasn’t sure it would be a “good enough” idea, but I’m glad the readers of RiskHedge found it useful. And I’m happy to share with you a few more “top notch” stock ideas.
These have just entered my incubator.
Keep in mind, I am DO NOT suggesting that you buy those shares today. They are too early in the game. But they all have exciting stories you should know… and could one day become a potential investment opportunity.
Drone Delivery Canada (OTC: TAKOF)
I was sitting on my patio enjoying a cup of coffee and the breeze coming from the Gulf of Mexico when a swarm of bees scared me from my chair.
That’s what I thought anyway …
When I caught my breath and looked up I saw a drone flying about six feet above my head. I had no idea what he was doing there, so I tried to push him away with my hand.
Turns out the drone belonged to a crew of workers who used it to inspect my storm damaged roof.
Drones – or small unmanned airplanes – have been around for some time. But we’re only just beginning to see all the valuable ways they can improve our lives.
The drone in my house saved workers hours of time, hassle and dangers. Rather than climb onto my roof and inspect it, the crew uses the drone to see exactly what’s wrong with the high definition video. It is a much faster and safer way.
In addition to cameras, drones can be equipped with small and lightweight sensor components. Thanks to advances in robotics and smartphones, these components are becoming cheaper and more efficient every day. And they unlock all kinds of profitable uses for drones, including:
- Agriculture — Drones can monitor the condition of crops and livestock. They can also identify areas that need to be watered or sprayed with pesticides or fertilizers and better target the use of these scarce resources to improve a farm’s yield and profitability.
- Making Movies: Drones make it much cheaper and easier to get those incredible action shots that previously relied on helicopters.
- Construction — Performing site surveys and structural analyzes is generally labor intensive. In addition, the work can be dangerous. Using drones cuts costs and minimizes the risk of injury.
But one of the biggest opportunities for drones is package delivery. And that’s where the $ 260 million market cap company Drone Delivery Canada Corp. (OTC: TAKOF) Between.
Drone Delivery Canada has branded itself as a “railroad in the sky”. It is a complete “store-to-door” drone delivery solution. It provides drones equipped with proprietary flight management software, as well as all necessary services, including regulatory compliance.
Its drones are programmed to automatically follow a flight path. No need for humans to control them. They can carry up to 400 pounds.
It is an exciting company with a lot of potential. But it’s very, very young. I need to do more analysis to see if it can achieve the revenue acceleration needed to pass my strict criteria.
Transphorm inc. (TGAN)
Transphorm beats Moore’s “power law” with its gallium nitride (GaN) semiconductor solutions.
Moore’s “original” law applies to computer chips. He argues that the number of transistors that can fit on a computer chip doubles about every two years. This leads to a doubling of computer processing power approximately every two years.
“Moore’s Law of Power” is similar. It refers to the increasing capacity of power converters.
Power converters convert electrical energy from one form to another. AC to DC, for example. They are a key component in charging almost anything with a battery, such as cell phones and laptops.
For most of modern history, engineers have put more and more power into converters. This has made them more and more powerful and allowed the exponential growth of more and more powerful technologies that we benefit from every day.
But the rate of improvement has slowed down recently, and it will stop soon. This is because the silicon inside these converters has reached its physical limits.
This is where Transphorm comes in with its gallium nitride (GaN) material.
According to Transphorm:
GaN is the … material that can advance this law. Because GaN is inherently the best material for power conversion among all practical materials.
It has the highest efficiencies and lowest power conversion losses at any voltage range and it operates at a higher frequency.
The result is smaller, lighter, cooler power systems with 40% higher power density and 20% lower system costs.
Transphorm is an exciting company built on over a decade of innovation with an extensive intellectual property portfolio of over 1,000 patents. If its technology is reliable and scalable, this could be a game-changer.
But the stocks are traded over-the-counter, not on a major exchange, and the volume is extremely low, averaging just $ 136,000 per day.
So I’m keeping an eye out for this one, but it’s too risky to add it to your portfolio today.
We put the stock in our incubator to keep an eye on it.
Originally published by Mauldin Economics, 06/28/21
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.