A Special Note from Michael: Before I get to today’s main topic, I just needed to show you this because this deal is closing fast. A tiny startup is on the brink of landing what could be a $2 billion on the Las Vegas Strip that you can buy into for just $1 a share. But this deal is only available until tomorrow night at midnight. You can click here to learn more.
Chris Giattina is working with a top-flight software platform to transform the nation’s $3.6 trillion healthcare system.
And no, he’s not pioneering a breakthrough in genetics a or cutting-edge new drug.
His approach is a bit more basic. But in these COVID challenging times, his work is very important, not to mention profitable for savvy tech investors who know where to look.
Here’s the thing. Giattina is the CEO of BLOX, which is focusing heavily on making modular medical facilities.
Using its unique approach to construction, BLOX can have a 16-bed isolation unit ready for patient use in as little as a week.
That could prove a huge benefit in the continuing war on COVID. See, some cities and towns have found themselves short of medical facilities when there is a spike in new cases.
Given that BLOX is privately held, there is no direct way to invest in this disruptive tech, but you still have the chance to make money off of their disruptive building tech.
I have uncovered a storied software firm that made BLOX’s mission possible and is set to double its earnings in 18 months…
The Modular Hospital
Giattina’s inspiration for BLOX came when he was the principal architect hired to build an employee training center in Alabama for a Japanese automaker.
The client wanted it done in just nine months, something unheard of in the slow-changing U.S. construction industry. So Giattina looked to the car industry for inspiration.
It’s the efficiencies he found there that inspired BLOX.
The firm makes standardized pipes, wiring, racks, and so on in its factory, and incorporates them into walls, floors, and ceilings before they are even assembled into buildings.
These are then put together into “uber modules.” We’re talking complete traumas center, breaks room, or patient waiting areas.
Now, Giatinna’s focus is on healthcare, but the benefits of modular construction aren’t limited to just that. According to Grand View Research, the whole modular construction industry is growing at 6.5% a year and will be worth $178.4 billion in 2025.
Of course, turning construction into factory manufacturing takes a lot of design work. Otherwise, nothing will fit together.
And that’s where the outstanding software team behind BLOX, not to mention a potentially massive profit opportunity for you, comes in.
Digital Healthcare Design
Autodesk Inc. (ADSK) blazed a trail in complex software vital to making a wide range of products around the world.
BLOX uses Autodesk’s Revit software to design its building components, and the company’s Forge and BIM 360 packages to translate that model into fabrication on the factory floor.
It’s a success story that is helping Autodesk to stay at the forefront.
The company cuts its teeth in a field known is known as CAD/CAM. That ‘s short for Computer-Aided Design/Computer Aided-Modeling. Among other things, its software provides very complex 3D views for product designers.
That gives it an even wide reach in the field of healthcare technology. When volunteers in the robotics industry set out to create a new, cheap ventilator during the spring COVID surge, Autodesk was there to help.
Using the Autodesk Fusion 360 software solution, volunteers from all over the country in The Ventilator Project could collaborate online. In this way, they could design ventilators that cost a fraction of regular ones.
Just as important, the team didn’t have to rely on parts supply chains disrupted by the pandemic.
Similarly, when Kia Motors asked 3-Dimensional Services Group to make personal protective equipment (PPE) for healthcare workers, the company turned to Autodesk’s PowerMill and Moldflow software.
3-Dimensional usually produces prototypes and low-volume parts for the car industry. But with the COVID shutdowns, carmakers were shut down.
So the company turned its shop floor into making face shields.
Autodesk’s software helped 3-Dimensional get set up in a day, 40% less time than it would have taken otherwise.
Autodesk has remained a favorite among architects for many years, and they are committed to the innovation needed to keep it that way.
In the past few years, Autodesk has re-written all its software into a fully cloud-based platform where staff and clients alike can share all key documents delivered via the Web.
Fully harnessing the cloud also opened the door to a key sales shift. The client base has been prodded to migrate from one-time license fees into a monthly subscription, known as Software-as-a-Service (SaaS).
That approach represents a truer cost of all of the features that Autodesk clients tap into each month. And for the firm, it also means a lot more revenue per client.
In July, Autodesk also acquired Pype, which provides cloud-based management automation software for construction projects.
It’s another part of Autodesk’s growing portfolio targeting the quickly growing construction industry, even beyond the massive $3.65 trillion healthcare market.
In short, Autodesk is a big help to firms that want to gear up to change course quickly.
Autodesk’s cloud-based software can also predict problems in designs, whether because it will fall afoul of regulations in some areas or because some design features will be hard to manufacture further down the line.
This integration keeps clients subscribing, and spending money on Autodesk’s eStore, where new software features can be trialed before buying.
This cloud model is bringing in huge profits and cash flow.
Another thing I like about Autodesk is how conservative they are in their forecasts. They really only suggest a roughly $33 billion total market for their cloud and software solutions, a vast understatement.
Its latest earnings beat the forecast, but the stock fell on lower guidance, something lots of firms have provided in the COVID world.
That sets us up for a very nice buying opportunity because Autodesk is an earnings powerhouse. Over the past three years, the firm has grown per-share earnings at an astounding 481%.
If we use just 10% of that to project when the company will double, the result is just 18 months.
That makes Autodesk a great foundational play that you can count on to build up your portfolio for years to come.
Cheers and good investing,
Michael A. Robinson