5G FORTUNES

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5G FORTUNES

HOW TO MAKE A FORTUNE ON THE NEXT TECH REVOLUTION


Welcome to Exponential Tech Investor. Our mission is to profit from technology companies on the verge of exponential growth. We do this by investing in small- or micro-cap companies on the verge of mass adoption.

In this report, I’ll show you one of the biggest technology stories today. Then, I’ll reveal the one company poised for 10x gains as this tech revolu-tionizes modern communications.

From Sci-Fi to Reality

One of the biggest emerging trends in tech right now is fifth-generation (5G) wireless technology, and I’ve been watching it closely.

It’s a trend I’m deeply connected with. I worked for many years as an executive in the wireless industry with the top wireless network opera-tors around the world. This has allowed me to maintain important connections within the high technology industry and stay on top of important developments in the space.

So when I say that 5G is one of the biggest, most revolutionary technological innovations of our time, you can be certain I don’t say it lightly.

And that innovation won’t come overnight. A massive infrastructure project is in the works, right now, to make it all possible.

What we as everyday consumers don’t see is that when you connect to the internet on your computer, smartphone, or smart TV, a vast physical communications infrastructure makes

that connection possible.

Hundreds of thousands of miles of transoceanic cables connect to vast, land-based fiber-optic networks, which in turn connect to consumers’ homes and businesses.

Over the years, these wireless networks – and the infrastructure that supports them – have evolved. But not all of it has lived up to consum-ers’ expectations.

For example, the current 4G cellular networks are a disappointment.

The developers who built the 4G network thought it would deliver average download speeds of 100 megabits per second (Mbps). But in reality, many people only see speeds of about 10 Mbps.

(Megabits per second, or Mbps, is a common measurement for internet connection and down-load speeds. For example, to stream a high-defi-nition video from Netflix, you need a download speed of at least 5 Mbps.)

But with 5G, the peak speed jumps to 10 gigabits per second (Gbps). One gigabit is 1,000 megabits. So, at peak speed, 5G will be 1,000 times faster than the average 4G connection we have today.

Even if we just assume that average 5G speeds would be 10% of their potential, we’re still look-ing at 1,000 Mbps. That means that average 5G speeds will be 100 times faster than what we

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5G FortunesHow to Make a Fortune on the Next Tech Revolution

By Jeff Brown, Editor, Exponential Tech Investor


have today.

With that kind of speed, you’ll be able to down-load a two-hour movie in 10 seconds. Dropped phone calls and slow-loading web pages will be a thing of the past.

Plus, some previously “sci-fi” tech will finally become a reality. Technologies like self-driving cars, augmented and virtual reality, and holo-graphic projection will all operate over high-speed 5G connections. The applications are endless.

5G is a game changer because of all the techno-logical innovation it will bring about.

Some estimates cite that it’ll be responsible for $12 trillion worth of new goods and services by 2035. That’s about 56% of America’s total GDP in 2019.

I simply cannot think of a trend with more profit potential than 5G right now. But to really un-derstand why 5G is so transformative, let’s look back to the early days of wireless and see how far we’ve come…

The History of Wireless Networks

At a very high level, here’s what each wireless generation has enabled since 1G in 1983:

• 1G (deployed in the 1980s): Analog cellular technology, very low bandwidth, designed to enable mobile phone calls

• 2G (deployed in the 1990s): Digital cellu-lar technology, digital voice phone calls, enabled SMS (short messaging service – sending texts)

• 3G (deployed in the 2000s): Widespread use of CDMA technology, high-quality audio for calls, early stages of low-quality

video over mobile, and internet access

• 4G (deployed in the 2010s): Significant increase in data bandwidth enabling inter-net browsing and streaming of high-quality video, voice over IP technology (basically free phone calls anywhere in the world using services like Skype or any kind of messaging application)

Wireless technology is what enables today’s modern mobile phone networks. Since the first generation in the 1980s, the industry has been forced to develop the next generation of wireless technology every 10 years or so.

I say “forced” because the industry basically has had no choice… By the end of each wireless generation, wireless networks become congest-ed with traffic. And once that happens, wireless network operators can no longer consistently provide high-quality service to consumers.

What’s the problem? Why the congestion? Well, one chart explains it all…

The chart on the next page shows the amount of data and voice traffic transmitted over the world’s wireless networks since the first quarter of 2015. And it shows the exponential growth in demand for sending and receiving data (like images, music downloads, and websites) over wireless networks.

The amount of voice traffic (in gray) was roughly constant over the last several years. But what’s striking is that data (in blue) has exploded. As of Q1 2020, our wireless networks are transmitting over 45 exabytes of data every month.

To put that in perspective: Just one exabyte is equivalent to 100,000 times all the printed mate-rial in the Library of Congress.

I know… it’s hard for us to get our heads around

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how much information that is.

And given the rate of growth, wireless network congestion will only get worse...

Have you had a dropped call in the last 12 months? Or have you dialed a number, someone picks up, and you can’t hear them? Has it taken too long to download a web page? Can’t seem to receive or send your email?

These problems are almost al-ways due to network congestion. Just like when there’s a traffic jam on a highway and the cars aren’t moving… there can be too much data on a wireless network, and the digi-tal packets of information just can’t get to their destination.

There’s only one solution to fix that problem… The world has to build new infrastructure to sup-port the exponential growth in data traffic over wireless networks. There’s no other way.

The Next Infrastructure Boom

And here’s the exciting part… It’s already be-gun. The network build-out for 5G is happening right now in the U.S. and in a limited number of first-mover countries.

It’s important that we position ourselves now in the Exponential Tech Investor portfolio to profit from this massive trend. Not only will 5G transform our lives and enable us to do things we could have never done before… but it will also be one of the single best investment opportunities that we’ll see in the next 10 years.

What will 5G mean for consumers? How will it

be different from what we experience daily over 4G networks?

• Typical speeds on 5G will be an average of 1 gigabit per second (Gbps), which would be 100 times faster than what a U.S. consumer experiences on 4G today.

• Self-driving cars will be connected in real time over wireless networks.

• Companies will be piloting trucks for logistics remotely, just as drones can be flown from halfway around the world over satellite networks.

• We’ll be able to surf the internet and make phone calls while riding on a high-speed train up to 310 miles per hour (500 km/hour).

• Consumers will be able to “sit in” on meet-ings by projecting themselves using holo-graphic images in real time with no video or audio delay.

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• And there will effectively be no latency (delay) over 5G networks. Latency will drop by 99% from more than 100 milliseconds down to a mere 1 millisecond. Latency like this would enable a doctor to operate on a patient with robotic surgery… over a wireless network.

5G wireless networking technology is not evolu-tionary… it is revolutionary.

I hope that by reading this, you’re as excited as I am with what’s coming. From my perspective, it can’t happen fast enough. And the positive eco-nomic implications are just incredible…

Massive Investment Leads to Massive Growth

Very shortly, I’ll show you how we’ll invest in this massive communications build-out. But first, let me show you how the 5G build-out will impact the world economy…

For the U.S. market alone, it’s expected that the major wireless carriers (AT&T, Verizon, and the combined T-Mobile/Sprint) will spend as much as $275 billion on 5G wireless infrastructure.

To put that into more understandable terms, this will result in an estimated three million jobs created and $500 billion in GDP growth… again, just in the U.S.

Globally, total investments will be on the order of $200 billion per year through 2025. By my calculations, total global investment will be on the order of $2 trillion by the time the build-out is done.

Put simply, this is the largest, most significant communications infrastructure build-out the world has ever seen. And it won’t come easy.

5G is very different from 4G technology. It’s more expensive to build out, more complicated, and far more powerful.

What’s important to understand is that there is a fundamental, technical reason for why these networks are more expensive to build.

3G and 4G technology used wireless towers that could cover 30-45 miles of flat terrain. But 5G network architecture is completely different.

It uses what’s called a “small cell” architecture, which requires far more cell tower locations. For major metropolitan areas, this could mean one small cell tower on almost every street corner.

Today, there are about 200,000 cell phone towers scattered across the U.S. Yet when the 5G network is constructed, there will be more than 1,000,000 cell phone towers to support the high-er bandwidth, higher speeds, and new services delivered over 5G.

That’s at least a fivefold increase in the number of towers needed for 5G compared to the previ-ous generation.

There’s a good reason for this shift in architec-ture… the congestion problem I mentioned earli-er in this report.

Even with all of the improvements in wireless communications technology over the last 10 years, dropped calls still happen all the time.

Right now, one small company is helping fix that. Its game-changing technology is improving the quality and performance of mobile phone calls. I’m confident it’s going to do extremely well in the future… and we could see 10x gains.

But before we get to that company, let’s take a closer look at what’s going on with wireless com-


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Why 5G Won’t Make You Sick

With 5G wireless network construction happening at an accelerated pace and 5G wireless broad-band internet services already appearing in markets around the U.S., consumers are now seeing the first 5G smartphones for sale.

Not surprisingly, we’ve received a lot of questions about whether or not 5G wireless technology is safe for consumers. It’s important for us to ask these questions and also to understand the facts behind the research.

Mobile phones emit radiofrequency radiation, or radio waves, which are a form of non-ionizing radiation. This kind of radiation is normal and all around us. Non-ionizing radiation only has enough energy to excite a molecule, and the byproduct is merely heat.

Ionizing radiation, by contrast, is higher frequency and can be a severe health hazard. It can cause radiation sickness, burns, cancer, and even genetic damage. Ionizing radiation is the kind of radiation we find in using nuclear power.

It is important to be clear that 5G wireless technology is a form of non-ionizing radiation. And for that matter, so is the current 4G wireless technology and every other generation prior to that.

Since radio frequencies (RF) have been used in radio, TV, wireless networks, and many other services for decades, this is a careful area of study for regulatory agencies to ensure that these RF waves have no negative impact on consumers’ health.

To be very clear, there has been no conclusive evidence that RF wireless technology causes any side effects in consumers who use, or even those in the presence of, wireless networks.

A study in Denmark analyzed the records of more than 358,000 mobile phone subscribers with brain tumor incidence data from the Danish Cancer Registry. The “analysis found no association between cell phone use and the incidence of glioma, meningioma, or acoustic neuroma, even among people who had been cell phone subscribers for 13 or more years.”

In 2018, there was some very bad reporting concerning a study on the effects of high exposure of radiofrequency energy on rats. It found that male rats exposed to radio waves developed schwan-nomas (small tumors) on their hearts at statistically higher rates than the control group. However, mice and female rats exposed to the same radio waves did not develop any of these small tumors.

Somewhat ironically, those animals that were exposed to the radiofrequency radiation actually lived longer than the control animals that weren’t.

Also worth mentioning is that there have only been a handful of documented cases in humans of schwannomas of the heart… They are incredibly rare in humans.

https://www.bmj.com/content/343/bmj.d6387


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This study was conducted by the National Toxicology Program (NTP), which is part of the Na-tional Institutes of Health (NIH). Worth noting is that the study was performed at the request of the Food and Drug Administration (FDA), which is responsible for determining the safety of such radiofrequency energy.

Left out of the negative reporting on this research was the fact that the study used levels of radiof-requency energy that were considerably above what the FDA deems as the current safety limit for cell phones. And the current safety limits have a 50-fold safety margin to ensure consumer safety.

In the words of the NTP, “The levels and duration of exposure to radiofrequency radiation were much greater than what people experience with even the highest level of cell phone use, and ex-posed the rodents’ whole bodies. So, these findings should not be directly extrapolated to human cell phone usage.”

The FDA summarized that it had “not found sufficient evidence that there are adverse health effects in humans caused by exposures at or under the current radiofrequency energy exposure limits.”

In support of the FDA’s position, the National Cancer Institute notes that it does not see increas-ing numbers of brain tumors in the general population. Given that humans have been exposed to radiofrequency energy for decades, if there was a direct correlation to our health, we should have seen the impact already. So far, we have not.

For obvious reasons, I’ll be tracking this topic closely as 5G wireless networks become more wide-spread. My readers know well that 5G wireless networks will use up to five times more cell phone towers than 4G and more power in order to deliver higher speed to smartphones. It’s important to note that all 5G-enabled smartphones will still meet the safety limits and standards set by the Federal Communications Commission (FCC), which is informed by the FDA.

The above research should dispel any concerns you might have about 5G’s impact on your health. But if you’re still worried about it, I’ll leave you with a couple extra steps you can take to minimize your RF exposure…

First, use a landline phone whenever possible and try to avoid long conversations on mobile phones. Second, when you do have long conversations on mobile phones, I recommend using some kind of headset (wired or wireless) that allows you to talk without having the mobile phone right next to your head. For those who are concerned, this is a simple precaution that anyone can take.

We’re in for an incredible time as 5G wireless technology becomes available throughout the U.S. and in other markets around the world. We’re going to see such incredible improvement in wire-less service, we’ll wonder how we ever survived without it.

https://www.fda.gov/newsevents/newsroom/pressannouncements/ucm595144.htm


munications technology today…

Growing Pains

As I showed in the chart on page 4, mobile data growth has been exponential over the last few years. Mobile network traffic grew 56% between Q1 2019 and Q1 2020 alone.

This creates a major challenge for wireless network operators like AT&T, Verizon, and T-Mobile/Sprint.

Wireless networks transmit data and phone calls through the air in clearly defined radio frequen-cy (RF) ranges. These frequency ranges are the spectrum that is used for trans-mission. Wireless network operators purchase or license the rights to deliver a service using the spectrum.

The spectrum is typically thought of as a “public good” and is usually regulated by each country’s government and harmonized with adjacent coun-tries in order to avoid unwanted signal interfer-ence.

The problem is, when data traffic continues to grow exponentially – doubling again and again – more efficient technology and additional spec-trum is required to avoid dropped calls and signals.

You see, the spectrum allocated for services transmitted over RF is jam-packed. The above image will give you a feeling for how busy the radio spectrum is. It represents the United States market, but most countries have similar spec-trum usages and allocation.

That’s where 1G, 2G, 3G, and 4G/LTE wireless technologies come in…

Each generation tends to operate at much higher frequencies in the radio spectrum. The reason is that there is more spectrum available for use at higher frequencies compared to where services are being delivered today.

At the moment, the most widely deployed wire-less technologies worldwide are the third gener-ation (3G) and fourth generation (4G). The fifth generation (5G) is not far behind, with some of the earliest deployments beginning back in 2018.

The key thing to understand is that 3G and 4G technologies are transmitted across a wide range of frequencies – basically between 700 MHz and 2200 MHz. As the world starts to progress toward 5G deployments, the frequency range is getting even higher – anywhere between 2400 MHz and 8600 MHz.

So we will continue to need new generations of wireless technologies that are more efficient with

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United States Radio Frequency Allocations

Source: NTIA


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their use of allocated spectrum. We’ll also need to continue to add spectrum at higher frequencies as the demand for data consumption continues to increase.

That leads us to our recommen-dation. This company provides a critical component in the RF space that improves the quality and per-formance of mobile phone calls.

You can think of this company as a backdoor play on the evolution of wireless technology and the expo-nential growth in data.

And best of all, almost no one has heard of it…

Next-Generation Tech

Akoustis (AKTS) is a small company outside of Charlotte, North Carolina, that’s been quietly developing leading-edge technology for wireless devices.

It was established in May 2014 by its CEO, Jeff Shealy, who has spent the last 20 years of his career in the RF/wireless industry. Jeff founded a company called RF Nitro that was acquired in 2001 by industry leader RF Micro Devices (RFMD). He spent 13 years at RFMD. In 2015, RFMD and another industry player called TriQuint merged and formed a company called Qorvo. I’ll come back to this in a moment.

Akoustis was essentially a scientific research entity for its first several years of existence. Until 2017, the company was completely focused on developing a new, novel technology that im-proves the performance of wireless devices.

That novel technology is a new kind of radio

frequency filter (RF filter) technology called a “wide-band single-crystal bulk acoustic wave resonator.” To keep things simple, we’ll refer to it as a single-crystal BAW filter.

You might not know this, but every phone and wireless device has RF filters. These allow the phones to receive and transmit voice, video, and data over the wireless network at certain fre-quencies. They’re used by Wi-Fi networks as well. Every mobile phone or wireless device contains anywhere between 20 and 40 of these filters.

I won’t get too technical on the product, but there are a few key things to know.

In May 2016, Akoustis published a breakthrough single-crystal BAW filter design at a conference held by the IEEE (Institute of Electrical and Electronics Engineers). The IEEE is one of the most well-respected trade organizations in high technology, so the venue was significant.

The impact that Akoustis’ BAW filter has on the performance of a mobile device is significant. It has the ability to support two times the spectrum

Evolution of Wireless Communication

The data rate for 5G will be 100,000 times more than the data rate for 2G

Source: 3GPP

X10Data rate increase

X200 X4200 X30000 X100000

Analogue

1G

2G

Digital

Data/PS

3G

Full IP

4G(LTE)

Efficiency

5G


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bandwidth compared to competing solutions, which results in:

• Better signal strength

• Fewer dropped calls

• Lower power consumption

• Less heat generated by the phone

In short, this technology allows a mobile device to access more spectrum with fewer filters due to its ability to cover a wider spectrum bandwidth.

Aside from allowing users to dependably make and receive phone calls, it also offers longer bat-tery life. This is one of the most wanted features by adult smartphone users. After all, if we don’t have any power left in our batteries, it won’t mat-ter how good our smartphone is.

But one of the biggest challenges that smartphone and tablet manufacturers have is manufacturing products that can survive a full day of usage with-out needing to be recharged throughout the day.

So technologies that help to reduce power con-sumption on smartphones are seen as absolutely critical by the industry.

I’ll go into more details about Akoustis’ BAW filter in a minute. But first, let’s take a look at the overall RF filter market…

A Massive Market That Continues to Expand

The market size for RF filters is massive. And for a simple reason: Every single phone and wireless device contains RF filters.

Think about that. Consumers purchase near-ly two billion new phones every year, and that number will increase as 5G rolls out. Every sin-

gle one of those phones will contain up to 40 RF filters compatible at 5G frequencies. That’s a lot of filters.

The total RF filter market is broken down into two simple categories: “low band” filters, called SAW filters, and “high band” filters, called BAW filters.

SAW filters are used in low-RF bands, typically 2 GHz or less. BAW filters are used in high-RF bands, typically 2 GHz up to potentially 20 GHz. Again, Akoustis is focused entirely on BAW filters.

About 28 billion RF filters were shipped in 2016, generating nearly $12 billion in revenue. And the RF market is forecast to grow to $19 billion by 2021.

The underlying driver for this market is the migration from 4G wireless technology to 5G… which is being deployed worldwide right now. And as the world upgrades its wireless technology to meet the demands for more data traffic… RF filters will get more and more complex.

Increased RF complexity results in the need for more RF filters in mobile devices. Put even more simply, as data services are transmitted over a larger amount of different parts of the radio spectrum, more RF filters are required. In 2005, which was when 3G technology was being widely deployed, only two RF filters were required.

But by 2013, in the midst of 4G wireless technol-ogy deployments, the amount of filters required jumped by a factor of 10! By 2015, that number doubled again to more than 40. Needless to say, the number of filters required will increase again during the migration to 5G wireless technology and higher frequency bands.


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And this jump in filter complexity has a direct impact on Akoustis’ bottom line.

Think about this: Every wireless device contained about $0.75 worth of RF filters back in 2014. That number grew to $4.00 per de-vice in 2015… and $7.50 per device in 2016. In 2017, as the 4G network hit its limits, every wireless device contained about $19.50 worth of RF filters. That’s a 2,500% increase over 2014.

And Akoustis projects that every wireless device will contain $24.50 worth of RF filters as 5G technolo-gy hits its stride.

A Duopoly Creates a Great Market Opportunity

Now, there’s something interest-ing about the BAW filter market… It is essentially a duopoly. It is controlled by only two companies, Qorvo and Broadcom.

I mentioned Qorvo earlier. As I said, it was formed from the merger of RFMD and TriQuint.Broadcom is the result of the acquisition of Broadcom by another semiconductor company called Avago, which was completed in February 2016.

The mergers and acquisitions activity during the last several years has created this unique duopoly in the market.

The result has been a less competitive market for companies that purchase BAW filters for their

products. Buyers of BAW filters are desperate for alternatives in this space. So there’s a massive opportunity for a third player like Akoustis.

Game-Changing Technology

The new BAW filter technology Akoustis has de-

Annual Revenue (in Billions)


signed is revolutionary.

As I told you earlier, the single-crystal design is capable of supporting a spectrum bandwidth that is twice as wide as what’s currently used in the market.

This leads to better signal strength, fewer dropped calls, and prolonged battery life. It will also result in the reduction of the number of fil-ters required in a mobile device.

A reduction in components (filters) leads to sav-ing space in the design… And space is at a premi-um in smartphone design.

Now, it’s important to note that Akoustis’ single-crystal BAW filters will be more expensive than the lower-bandwidth BAW filters from Qorvo and Broadcom that are commonly used in the market.

This might sound like a competitive disadvan-tage… But there are three reasons it’s not.

First, I believe that the use of Akoustis filters will reduce the overall cost of the bill of materials for mobile devices because fewer components re-sults in lower costs.

Second, the reduction in battery consumption will be the second major driver for using Akous-tis’ BAW filters. I can foresee a 5%-10% reduc-tion in power consumption.

You may think 10% isn’t much. But in terms of power consumption, it is massive. Think about an average day of usage with a mobile device. If a device is used for eight hours (480 minutes) for voice, video, and data, a 10% improvement would result in an additional 48 minutes of us-age. That’s a big deal.

Third, the low-bandwidth BAW filter business

has lower margins than the high-bandwidth business. Akoustis will be the only player with single-crystal high-bandwidth BAW filters, which means that it will be able to charge a premium for its products. This will result in a much healthier gross margin, which will eventually generate healthy free cash flow for the company.

And the Akoustis business model is actually pret-ty simple.

In 2017, the company strategically acquired a 120,000-square-foot wafer manufacturing fa-cility in New York to produce its patented BAW filters.

This move enables Akoustis to consolidate all as-pects of the manufacturing process, which reduc-es its design and manufacturing time, improves manufacturing quality, and increases its ability to service customers. What’s more, the facility has the production capacity to support up to $200 million per year in sales, with incremental invest-ment.

Akoustis’ sales channel is also pretty straightfor-ward. It generates business opportunities pri-marily through three channels:

• Reference designs: Akoustis works directly with mobile baseband semiconductor play-ers like Qualcomm, MediaTek (Taiwan), and Intel to design its technology for their reference designs. Players like Qualcomm create reference designs to make it easy for less-sophisticated companies with fewer in-house engineering resources to design mobile devices. When Akoustis’ filters are part of the reference design, it is highly likely that the mobile device manufacturer will use its product.

• Radio frequency front-end (RFFE) man-

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ufacturers: Designing the components for radio frequencies is widely known as an art form. It requires a lot of fine-tuning. As a result, many mobile phone manufactur-ers use an RF module (which includes not only the BAW filter but also a switch and an amplifier all used to receive and send radio frequencies) to simplify the design process. Companies like Skyworks, Qorvo, Samsung (Korea), and Murata (Japan) are well-known for manufacturing these front-end modules. Akoustis sells its products directly to these players.

• Direct to the manufacturers: Mobile device manufacturers that have enough in-house engineering resources are able to design their entire products. Akoustis will look to sell directly to these major players like Samsung, Apple, and Huawei (China).

You can see this relationship between Akoustis, component manufacturers, and smartphone manufacturers in the graph above.

It’s important to note that this is a long sales cycle. If Akoustis designs its product into a reference design this year, production will most likely not happen until next year. The same is true for any designs that it might have with RFFE module manufacturers. Revenue will start to flow from these strategic wins 9–24 months in the future.

Extraordinary Growth Potential

2017 is the year Akoustis went from being a sci-entific research entity to a commercial enterprise with a high-tech portfolio of products.

Akoustis now has a suite of BAW filter products available, and the company has already an-nounced multiple large-scale production orders from major enterprise customers.


Source: Akoustis

The market doesn’t realize it yet, but Akoustis will be a classic exponential growth story where one year the revenues are nonexistent, the next they are material but not too significant, and the following year… explosive growth.

Akoustis has demonstrated the ability to execute the manufacturing of its BAW filters efficiently, and the company is well-positioned to become a major player in the multibillion-dollar BAW market.

To give you a feel for how quickly Akoustis could grow its revenues, in 2019, there were about 1.4 billion smartphones shipped globally.

The high-end smartphone market is one of Akoustis’ major targets for its new technology. Targeting the high end makes sense. It’s where the manufacturers and their customers will rec-ognize the value of the higher performance that Akoustis’ technology brings.

The high-end market comprises roughly 30%-35% of global smartphone shipments. At 30%, this would represent more than 400 million units shipping in 2019.

On average, a high-end smartphone has about 10 BAW filters. I estimate that Akoustis’ average

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revenue per phone would be around $3.

If I’m right about how disruptive – and valuable – Akoustis’ technology will be, I think Akoustis could capture about 10% of the high-end smart-phone market share by the end of 2020. This would result in an annual run rate of $126 mil-lion in revenue.

Think about that. Akoustis has the potential to grow from zero revenue in 2016 to more than $120 million in just four years.

Dominant Intellectual Property Position

Earlier, I noted that Akoustis was essentially a scientific research company for its first several years of operation. And during that time, Akous-tis quietly amassed a solid patent portfolio for its new single-crystal BAW filter technology. As of June 2020, Akoustis has 32 patents as well as 64 patents pending approval.

While most of the market failed to notice, Akous-tis cleverly created a dominant intellectual prop-erty position in single-crystal BAW filter devices. Essentially, it controls all of the foundational intellectual property (IP) for these filters.

But this case is even better… Akoustis is the only company that holds the foundational IP for sin-gle-crystal BAW filter devices.

And because of the benefits these BAW filters will bring to the industry, there will be rapidly growing demand for Akoustis’ technology.

And there will be only two ways to get it… by buying the BAW filters from Akoustis or buy-ing the company outright. That means Akoustis could become an attractive acquisition target.

Obvious candidates looking to buy Akoustis

would be Qorvo, Broadcom, Qualcomm, Sky-works, or even a private equity firm that under-stands the value of Akoustis’ IP like I do.

Now’s the Perfect Time to Get In

To say that Akoustis is “under the radar” is an understatement. If you were to ask 10 of your friends and colleagues, I’d bet that exactly zero of them have heard of the company.

The stock wasn’t even listed on the Nasdaq until March 13, 2016. Prior to that, Akoustis was trading over-the-counter (OTC), with few shares trading daily.

And Akoustis has remained off Wall Street’s ra-dar, even after its up-listing on the Nasdaq… But that’s quickly changing.

The word is getting out…

And that’s why now is the absolute perfect time to get into AKTS.

Action to Take: Buy Akoustis (AKTS) up to $8. For our most up-to-date risk management, please refer to our online portfolio here.

Note: If this stock is trading above our recommended buy price at the time of reading, my official recommendation is patience. Technology stocks experience natural volatility that almost always gives us a great entry point. I want to make sure readers invest in the best companies at a great price.

Regards,

Jeff Brown Editor, Exponential Tech Investor

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