Big Profits in Big Data
Who Will Win the Exabyte Game?
There are as many ways to make money in the stock market as there are fleas on a dog.
In my investment service Technology and Opportunity, we believe the best way to make money is to get in front of the herd on the next moneymaking trend and sell when the news spreads to the great unwashed.
Holding too long is death in tech investing. “Pigs get slaughtered,” but no one goes broke taking profits.
Recently, we sold MannKind (NASDAQ: MNKD) for 76% gains. Just this week, we also took profits from Inovio Pharmaceuticals (NYSE: INO) for a 25% gain.
If the trick to technology investing is getting in early on a big trend and riding the wave, we are in luck — this is a decade of big trends. In fact, this could be the biggest year for tech since the mid '90s.
There is money to be made from a number of expanding sectors.
Robots are taking over jobs, replacing everything from burger flippers to doctors.
In biotechnology, stem cells are advancing so rapidly that it wouldn't surprise me if my eight-year-old daughter lived to be 120 and my 76-year-old father is still skiing in 20 years.
Even outer space is seeing a renaissance.
Recently, SpaceX founder Elon Musk tweeted a picture of 3D-printed rocket parts and wrote: “SuperDraco inconel rocket chamber w regen cooling jacket emerges from EOS 3D metal printer.”
Here's a picture of it test firing:
If that's not badass, I don't know what is.
This is why, at Technology and Opportunity, we are heavily invested in the new, privately owned space race. And we've been destroying the markets.
Technology Sector Investing
It's been a very good year so far for Technology and Opportunity. Let me show you some compatibles:
- So far, the S&P 500 is up 4.65% year-to-date.
- iShares US Technology (NYSE: IYW) is up 8.39% ytd.
- iShares PHLX SOX Semiconductor Sector (NASDAQ: SOXX) is up 18% ytd.
- First Trust Dow Jones Internet Index (NYSE: FDN) is down 3.07% ytd.
- Robo-Stox Global Robotics & Automation ETF (NASDAQ: ROBO) is down 0.62% ytd.
- Fidelity MSCI Telecom Services ETF (NYSE: FCOM) is up 2.41% ytd.
At Technology and Opportunity, our closed positions are up a whopping 125.56%, and our entire portfolio is up 23.24%, blowing away any of the top 16 (by market cap) technology ETFs that trade in the U.S. and totaling almost five times the returns of the broader market.
And we don't charge you 2% of your investment plus 20% of your profits like they do at unscrupulous hedge funds. No, we give you tremendous profits and cutting-edge information for less than the price of a good pair of shoes.
And we are doing it again this month as we recommend a new stock making money in big data.
Big Profits from Big Data
One thing that is different from the '90s tech boom is that in today's world, the amount of data is astronomical. Vast, chaotic data sets are being born right this minute — squeezed out from the ether with so many keystrokes and camera shots.
The companies that manage this information will change the world and make a fortune doing so.
The term “big data” is used to describe any collection of data sets so large and complex that it is impossible to manage using traditional data processing. When you start to think in terms of millions of terabytes (exabytes) of information gathered daily, you can understand both the problems and the opportunities in today's world.
In 2012, the world created 2.5 exabytes of data a day. That's 2.5x1018 bytes. And data grows at 40% a year.
When you think about the expanding trends in the computing world, such as the cloud, mobile, and social computing, the data sets are so large that it boggles the imagination.
Take the example of MasterCard (NYSE: MA). MA handles payments for 2 billion cardholders and tens of millions of merchants. It uses that information to generate real-time data on consumer trends, available more quickly than regular government statistics.
Imagine being a wholesale buyer and knowing the next fashion trend in real time before your competitors. That has tremendous value.
The Gartner Group says that big data will support 4.4 million IT jobs by 2015. If you have children going to university in the next few years, forget plastics — tell them to study big data or big data analytics. They will have a job before they graduate that will pay them a small fortune.
To quote Gartner's report:
"By 2015, 4.4 million IT jobs globally will be created to support big data, generating 1.9 million IT jobs in the United States,” said Peter Sondergaard, senior vice president at Gartner and global head of Research. “In addition, every big data-related role in the U.S. will create employment for three people outside of IT, so over the next four years a total of 6 million jobs in the U.S. will be generated by the information economy.”
To put this in perspective, only 1.2 million jobs were created in 2013 — and most of them were part-time.
The question is: how do you capture, store, search, share, transfer, analyze, and visualize this data? How to you make it useful in order to do things like spot business trends, prevent diseases, combat crime, follow asteroids, or manage traffic?
I'll be frank with you: I have no idea. But I do know a lot of smart people are going to figure it out. And the companies that find the solutions will make lots of money.
That's why in the latest issue of Technology and Opportunity, we've detailed the one company that is on the cutting edge of the big data trend and that has a clear catalyst for share price appreciation.