This Tech Stock Produced 2,000% Gains in 12 Months
For years now, I’ve been following the progress of a young tech company based in Calgary that reinvented the world's single most abundant electric device: the electric motor.
When I first heard about this company all the way back in 2017, it was trading for around $0.20 a share.
And that’s essentially where it stayed for those first few years. Things were quiet, but behind the scenes, the work continued.
In 2020 everything started to change.
A collaboration with an agricultural equipment-maker finally lit a fuse for the investment community, and the share price trajectory was altered forever.
By the spring of 2021, the stock was trading $5.
It wasn’t a marketing campaign or some hyped-up headlines that made it happen. Rather, it was the natural result of a truly world-altering invention making waves through the tech sector.
The company did it by applying AI algorithms to the charge distribution inside of an electric motor's coil — something that had never been done before.
This "smart power management" immediately paid off in the form of more power and efficiency at a vastly improved range of rotational speeds.
Though it may not sound very dramatic, the difference in performance is.
With a full 50% of the world's generated energy ending up inside the coils of an electric motor of one kind or another, the potential energy savings globally is roughly equal to the total energy demand of the United Kingdom.
This smart power management system was the first major evolution of the electric motor since the very advent of the device all the way back in the first half of the 19th century, and the response it received from the consumer tech and transportation industries was more than enough to take this tech firm from startup status to a globally recognized brand.
So if you’re wondering what it takes to land early investors 2,000% returns, this is it, in a nutshell.
That’s already a lot to be proud of, but this company wasn’t finished.
Another World-Changing Innovation... on the Way
While this firm continues to refine and market its AI-driven power management systems to companies ranging from e-bike-makers to mass transit firms, it's now embarked on another potentially even more disruptive project: a next-generation "e-axle" for the electric vehicle industry.
Traditional EV powertrains consist of an axle, a motor, and an inverter, all in separate housings located at different parts of the car's substructure.
The new e-axle will contain everything in a single unit, cutting down on size, weight, complexity, and mechanical inefficiency.
Of course, the motors found inside these new e-axles will feature the new smart power management system as well, bringing together an entire suite of new technologies to optimize power delivery to a wide spectrum of consumer and commercial vehicle types.
To be clear, there is nothing like this anywhere on the market today. Intellectual property is patent-protected, and with collaborations stacking up, the path to market should be quick and clear.
It’s not all good news, of course.
Today's EV-makers like Tesla, Rivian, and Lucid, as well as older, more established car brands now moving into the EV space, including Toyota, VW, Ford, and GM, now face potential market obsolescence at the hands of this one company. Join Wealth Daily today for FREE. We'll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: "How to Make Your Fortune in Stocks"
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It’s Got Chief Technology Officers Lying Awake at Night
If history has anything to teach us about moments like this, we could be looking at a market massacre in the coming years.
To get an idea of what I mean, just think of every car brand that came before the Ford Model T.
These new smart components will soon become the benchmark against which all others are judged, which gives today's big names three choices: They can try to build competing technologies, or they can license the tech from, or outright purchase, the company that's already mastered them.
Not only is competing costly and time-consuming, but it also comes with the added risk of potential intellectual property claims.
Seeing as many of these automakers count their market capitalizations in the tens or even hundreds of billions of dollars, whereas the Calgary-based thorn-in-the-side I've been mentioning is worth only a couple hundred million at this point, a buyout offer is more than a little likely.
Buyouts come with all the privileges of ownership, including the ability to license (or not license) the tech to competitors.
Since the big dog in the EV game is still Tesla, I would look there as the most likely candidate.
Regardless of whether the IP is sold or licensed, however, one thing is all but guaranteed: This company is going to make a serious and permanent impact on the EV industry in the next few years.
Share prices have started to hint at this future, having appreciated more than 5x over the last two years, but things are only now gaining momentum.
With commercialization in sight, this could be one of the most underbought stocks out there today.
Do All Your Due Diligence Right Here in Less Than 30 Minutes
Since the heady days of 2021, share prices have settled back down somewhat.
The company is still valued at 10 times what it was when I first started following the story, but considering where it was last year and all the progress made since then, it’s a huge bargain by any standards.
But before any investment decisions can be made, it’s critical to do your homework.
You'll learn about the tech, the company, the stock, and what to expect in the near term and midterm.
You’ll see which companies it’s worked with so far to get where it is, and you’ll get a preview of what the future will hold as well.
Just one last thing, though, and this is most critical of all: Do not wait for this to wind up on Yahoo Finance.
If you do, you'll have already missed the bus. Get instant access right here, no registration required.
Fortune favors the bold, Alex Koyfman His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Wealth Daily. To learn more about Alex, click here.
Fortune favors the bold,
His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Wealth Daily. To learn more about Alex, click here.
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