A week ago, I delivered to you a special report on how to score 10x gains in the Singularity Era.
I demonstrated how technology already has transformed our world – and how, thanks to this market “Singularity,” technology’s fusion with the markets just went into overdrive
I laid out the four Singularity Era “windows” of opportunity – the pools of innovation that will lead to new intersections in the “Convergence Economy” we’ve been talking here.
And I promised I’d soon be bringing you Singularity Plays – the tech stocks, funds, and other investments with the best chance of making 10x gains… or beyond.
Never in the history of the human race has tech played such a leading role around the globe.
From the chips that will soon be driving our cars and the mobile web we all carry around in our pockets… to the sensors in our medical devices and the cloud most major corporations are storing their software and data on… the Singularity Era is changing everything it touches.
And today I want to follow up with a classic example of how to make money from a firm that is fundamentally changing “How We Work.”
It’s doing so by developing automation technology.
If ever there was technology that changes the way we work it is automation. This process unites hardware, software, sensors, robotic systems and more so that factories can operate far more profitably.
Today, factory-floor automation technology is worth roughly $109 billion. MarketsandMarkets says that spending in the sector will swell to $153 billion by 2022.
The firm I have in mind is turning formerly hidebound industries into advanced tech players – and minting cash for its shareholders along the way.
Its advanced set of software, hardware, and sensors is helping dozens of industries work smarter.
It’ll deliver 20% gains in the next 12 months alone.
And it’s in the middle of a $1 billion share buyback program – so you’ll get paid as you wait for the 10x gains it could deliver in the coming years…
It’s Time to Start Paying Attention to Steel
However, Wall Street and the tech media have barely noticed Rockwell Automation Inc. (NYSE: ROK) because they pay nearly zero attention to the main industry it’s disrupting. Most – and maybe very nearly all – tech investors ignore the steel industry because many feel it’s stuck in the 1950s.
Just look at Australia’s Smorgon Steel. It’s one of the world’s top makers of hot-rolled steel rods. Thanks to a full suite of equipment under Rockwell’s MES platform, Smorgon has virtually eliminated downtime between production runs.
And Rockwell’s system ensures that not a single ounce of steel goes unused during production. The software gives an extensive production report that calculates manufacturing efficiency, benchmarks the steel mill’s performance, and identifies immediate tweaks for improved performance.
Those kinds of assists have helped Smorgon to squeeze out extra profits in a very cost-competitive industry. Clients aren’t just producing better yields and firmer profits – they are saving labor and achieving unheard of levels of quality.
While steelmakers like Smorgon are rapidly catching up to the great gains enabled by technology in other fields, Rockwell is already helping these and other clients to move even further into the Singularity Era with some very smart sensors.
We’ve been hearing a lot about the Internet of Everything – and how 50 million such sensors and other connected devices will bring a new level of communications and analytics to formerly “dumb” equipment… and create $23.97 trillion in new wealth by 2020.
Rockwell is at the forefront…
The Connected Enterprise
Rockwell’s technology sets the stage for a new era of smart factories that are even more closely integrated into a firm’s global management strategy – what Rockwell calls the “connected enterprise.” With it, headquarters, remote factories, distribution centers, the supply chain, and a firm’s clients will all be sharing information like never before.
Rockwell continues to roll out more tools that will speed up this move into systems that transform the way factories work.
At the recent yearly Industrial Automation North America conference, the Milwaukee-based firm showed off a range of new technologies that are now housed under its Rockwell Automation Integrated Architecture system.
This platform lets clients control and collect data from a wide variety of devices over a single network. And all that data funnels right into a firm’s IT systems, giving planners rapid and useful insights.
Rockwell has been making a series of small acquisitions to make this platform even smarter.
Just this month, it bought MAVERICK Technologies, an expert in improving a range of industrial processes. A month earlier, Rockwell bought Automation Control Products, a leader in factory-floor server technology.
Looking a Decade Ahead
Of course, automation is a key enabler of one of the biggest changes taking place in industry: robotics. Industrial robots can already be programmed and manipulated to handle welding, assembly, handling materials, and many other applications.
And with artificial intelligence, these robots can complete real human tasks, including visual perception, speech recognition, decision-making, and adaptability.
Rockwell’s current research efforts are focused on systems that will enable robots to become even more effective. Scientific American predicts that. by 2050, a single robot will be able to perform 100 trillion instructions per second.
That will eliminate the need for many factory-floor workers. But this isn’t necessarily the job killer many people fear. Staff will be freed up to focus on complex and innovative tasks, which often translates into better-paying jobs.
Rockwell is working with all of the major industries to tweak and improve efficiency. For example, it is now working with key new clients such as Royal Dutch Shell PLC (NYSE ADR: RDS.A) and Australian mining giant BHP Billiton Ltd. (NYSE ADR: BHP) to identify troubled drilling and mining equipment before they start to fail.
Now, even though profits have risen for six straight years, a deep slump in the mining and energy sectors has led Rockwell’s management to recently project a sales and profit dip for this year.
Here’s why that’s good news for you…
Profiting From a Slump
That gives us a great buying opportunity. Not only do we benefit from a lower stock price, but we have the support of current $1 billion share buyback program. In fact, the firm has already returned $3.5 billion to investors over the past five years.
Rockwell Automation’s track record dates back 113 years, and its 22,000 employees in 80 countries are helping hundreds of firms work smarter. One of the charms of this business is that no single industry accounts for more than 10% of sales.
About half of revenue comes from a dozen different “heavy” industries such as mining, chip-making, energy, and chemicals. And Rockwell also has a strong footprint in food production, life sciences, transportation, textiles, and many other niches.
Trading at roughly $118, Rockwell has a $15.32 billion market cap.
I’m seeing 20% share-price gains in the next 12 months alone – but as AI infuses with automation technology… they sky is the limit.
Remember: The dawning of the Singularity Era was the moment when the technology economy converged with the entire stock market.
We’re right there… right now.
And companies like Rockwell – with its “convergence” of old-school know-how and Singularity Era technology – will create more millionaires than ever before.
I want you to be one of them.
- Strategic Tech Investor: On August 1, the Stock Market Changed Forever – Here’s the One Move I Want You to Make.
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