Technology Opportunity - media.angelnexus.commedia.angelnexus.com/pdf/tao/tao-september2014-rdu.pdf · Robotic Bidding Rocket Fuel offers a bidding strategy, dubbed programmatic buying,

September 2014

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September 2014 IssueTechnology

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In this month’s issue:

• Speculative Stock of the Month

• The Learning Machine: A Must-Own Artificial Intelligence Stock

• Monthly portfolio updates, including three newly issued sells

Speculative Stock of the Month: Graphene 3D Labs, Inc. (TSX-V: GGG) In 2004, two University of Manchester scientists, Andre Geim and Konstantin Novoselov, discovered a nanoparticle called graphene, ultimately earning the Nobel Prize for Physics in 2010. Today, graphene is being lauded as a super-material, or as the International Business Times calls it, the “Miracle Material.”

Graphene is about 200 times stronger than steel and only one atom thick, making it the thinnest but strongest material ever created by man. Additionally, graphene is an excellent conductor of heat and electricity — much like silicon — yet it is more flexible, less brittle, and more efficient.

Many leaders across industry and academia now consider graphene the choice material for the future of electronics, energy storage, and drug delivery. This includes big names from Samsung, Ford, IBM, MIT, and Harvard.

Driven by heavy investments in R&D, the global market for graphene-based products is expected to grow rapidly over the next decade. It’s predicted the market will reach $122.9 million in 2017 and $986.7 million in 2022. These figures represent a five-year compound annual growth rate (CAGR) of 51.7%.

One of the most widely proposed applications for graphene to date has been in battery development. Graphene batteries have shown the potential to store up to 20 times the energy of conventional batteries, making the material incredibly valuable.

The trick, of course, is producing these batteries efficiently. This is where 3D printing could come in.

On September 2, Graphene 3D Labs, Inc. (TSX-V: GGG) announced the filing of a patent application related to 3D printable batteries based on graphene. According to company CEO Daniel Stolyarov:

“The application filed by Graphene 3D has the potential to play an important role in achieving the ability to print electronic devices due to the necessity of providing a power source. Expanding our IP portfolio in this area is an important step in keeping with Graphene 3D’s primary goal of creating an ecosystem for 3D printing functional devices with advanced materials.”

In other words, GGG wants to physically print out consumer electronics using graphene. Stolyarov goes on to explain:

“A 3D printed battery can be incorporated into a 3D printed object during the building process. In addition, 3D printed batteries have several advantages over traditional batteries. Their shape, size and specifications can be freely adjusted to fit the particular design of the device. Our batteries are based on graphene and can potentially outperform conventional batteries. Graphene 3D plans to perform live demonstrations of our 3D printed batteries.”

Ultimately, the company aims to create a line of 3D printers optimized for multi-material printing — in other words,


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3D printers that can build devices like smartphones from the inside out. Sure, current 3D printers can make plastic prototypes, but being able to print working electronics is an entirely different story.

Without much more information available on the technology, we’ll have to take the company’s word that this is feasible, but at $2.20 (CAD) a share, this could be well worth the gamble. At the very least, the combination of 3D printing and graphene hype should be enough to send these shares on a short rally.

Of course, this one goes for any speculative pick, but just make sure you aren’t betting the house on it.

The Learning Machine: A Must-Own Artificial Intelligence StockOn May 11, 1997, the single most important chess match in the history of mankind was played out.

In a six-game match, Russian world champion Garry Kasparov was defeated by his American opponent. The final score of the match was two wins to one, with three draws.

Kasparov was furious and demanded a rematch on the grounds that his adversary was cheating. But Kasparov’s opponent was void of typical human pride and retired from chess from that day forth.

The match above was incredibly significant — not because it represented the conclusion of some international rivalry, but because it was the first time in history a computer program was able to beat a world chess champion in match play.

You see, Kasparov’s opponent in that 1997 match was Deep Blue, a chess-playing computer developed by International Business Machines Corporation (IBM).

With the ingenuity of computer programming, IBM was finally able to settle a nearly three-decade-long debate over whether or not a computer could outsmart the best chess players in the world.

Up until that point, the implementation of artificial intelligence (AI) was primarily seen by the public as a matter of science fiction. While technology had its place in physical industries and even in storing and transferring information, the art of thinking was left up to the superior human mind... or so everyone thought.

Genuine Intelligence

It’s been over 16 years since Deep Blue defeated Kasparov, and yet the concept of computers outperforming humans remains one that many of us are hesitant to accept.

AI has crept on up on us so gradually that we rarely appreciate how much thinking we leave up to our mechanical helpers. Every time we use a search engine, map a route with a GPS, or fly in a plane, we rely on some form of AI.

Even online trading platforms like E*TRADE offer AI for customer support.

The brutal truth is that human decision-making is flawed in many respects. Our thinking is often slow, and our memory is far more unreliable than we might expect.

Computers, on the other hand, can process more information and at a much faster rate. For machines, it’s only a matter of developing the correct algorithms for each situation.

In this month’s issue, we will be covering one company that has done just that: Rocket Fuel Inc. (NASDAQ: FUEL).

Rocket Fuel provides AI systems that enhance digital advertising campaigns for a wide range of Fortune 500 companies. Rocket Fuel’s software offers not only better performance than human decision-making, but can also learn and adapt itself in real time.


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Cleared for Takeoff

Founded in 2008, Rocket Fuel has developed an AI and Big Data-driven platform for predictive modeling and automated decision making in digital advertising.

That’s a bit of a mouthful, so let’s break down what Rocket Fuel does in the most basic terms possible.

To do that, we first we need to take a quick look at the way the digital advertising industry works...

In the past, advertisers would purchase space directly from Internet publishers. This was simple and effective at first, but as the volume of digital advertising increased, real-time advertising exchanges have emerged.

These advertising exchanges operate much like stock market exchanges. They work to reduce transactional friction associated with Microsoft for all its shoddy operating system builds since Gates left as CEO and for its sad purchase of digital inventory. The process of purchasing digital advertising inventory on these exchanges is known as real-time bidding (RTB).

In RTB, advertising impressions are sold as they emerge on the market. Every time a web page is loaded, an impression becomes available, and advertisers bid on those impressions. As you can imagine, the bidding process must be incredibly fast if advertisers want to purchase individual impressions; web pages load in milliseconds.

Traditionally, packages of these impressions have been purchased in advance because humans simply cannot respond fast enough to bid in real time. As a result, the value of these impressions is lumped into a single sum.

For instance, if you were running an ad campaign for athletic shoes, you would purchase 10 million banner ads on Footlocker.com under the running section, or 10 million Facebook ads for users who list “running” in their hobbies.

It’s a decent way to target your market, but it’s far from perfect.

Robotic Bidding

Rocket Fuel offers a bidding strategy, dubbed programmatic buying, that absolutely trumps human-based bidding for digital advertising inventory. Programmatic buying offers advertisers in the range of five to six times the traditional return on investment.

Rocket Fuel’s data system evaluates millions of features including age, gender, education, purchasing history, income, browsing history, behavior, time of day, and even weather to determine the value of a particular impression. In other words, the company’s technology determines which demographics are buying, what they’re buying, and where they’re buying it.

Because the entire process is automated by an AI program, Rocket Fuel can adapt throughout a campaign to work towards its customers’ goals. If one particular demographic is responding to an ad more than others during the campaign, Rocket Fuel will bid more aggressively on impressions that will reach that kind of consumer.

For instance, Rocket Fuel’s AI may determine that Marshalls sells more umbrellas on rainy days than days when the weather is clear. It would then use this information to tailor an ad campaign, bidding higher for umbrella ads in areas where it is currently raining, and bidding lower in areas where it isn’t.


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The AI may also realize that men are most likely to purchase a plain black umbrella while women prefer those with a design. Using this information, advertisers could send tailored ads: men are shown black umbrellas, and women are shown umbrellas with designs. Throughout each ad campaign, Rocket Fuel’s AI is analyzing information like this in order to tweak its bid points and maximize ROI.

Rocket Fuel also offers what’s referred to as “advanced hyper local geographic targeting,” which means it can target users based on their GPS location. By doing so, the company is able to drive foot traffic to brick-and-mortar sellers. For example, if you’re looking up a certain book and there is a Barnes and Noble nearby, Rocket Fuel’s technology can direct you to that store.

Likewise, companies can use past geographic behavior as an indicator of audience interest. Just about everyone is now carrying a mobile device, which means every time you visit a store or check in at a certain location, there’s a record of you being there. Rocket Fuel allows stores to target mobile devices that have previously visited their locations (or a similar nearby competitor) to run more effective ad campaigns.

To put the icing on the cake, Rocket Fuel offers sophisticated bot detection. By detecting bots, the company is able to reduce the number of ads shown to non-human users that routinely scour the web.

Prepped for Launch...

Rocket Fuel is situated very well with this technology and is already making a killing in digital advertising, an industry that is set for massive levels of growth over the next several years.

Here are a few stats that bode well for this sector:

• MAGNA GLOBAL expects display, mobile, social, and video advertising channels will grow from $42 billion in 2012 to $73 billion in 2016.

• Adults in the U.S. spend 255 minutes per day online and on mobile devices — up 50% from 2009.

• Total worldwide digital advertising is expected to grow from $72 billion in 2010 to $163 billion in 2016, according to eMarketer.

• RTB is expanding faster than any other segment on digital advertising exchanges.

• RTB sales are expected to grow from $3 billion in 2012 to $14 billion in 2016.

As for Rocket Fuel’s market penetration, the company has been absolutely explosive since its inception in 2008. Within six years, the company’s customer base has grown to include 84 of the Advertising Age 100 leading National Advertisers and over 60 Fortune 100 companies.

The company’s total active user base has increased 84% in the last year, from 784 mid-year 2013 to 1,444 mid-year 2014. Additionally, Rocket Fuel’s revenue retention rate sits at a healthy 149%, meaning that even without bringing on any new customers, Rocket Fuel still would have seen a revenue increase of 49%.

Alongside its rapidly growing and loyal customer base, Rocket Fuel has boosted revenue from $16.5 million in 2010, to $44.7 million in 2011, to $106.6 million in 2012, to $240 million in 2013. In the first half of 2014, Rocket Fuel has already completed $167 million in sales, putting it on track for a $423 million year, according to average guidance estimates.


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Yet since joining the public market last year, Rocket Fuel’s share price has done anything but reflect this growth. After a highly hyped (and highly priced) IPO, FUEL fell 75% in less than 12 months. Don’t let that scare you, though; this has only created an excellent buying opportunity for us.

Rockets Are a Go

If we’re to listen to the headlines, the general bear sentiment surrounding FUEL has been the result of “slowing growth rates” and tempered guidance. In reality, neither of these has warranted the sell-off that’s occurred.

First, FUEL’s growth rate was bound to slow at some point. The bigger you are, the slower your growth percentage will be. That’s just basic math.

But when you look at total revenue and customer growth, FUEL has shown virtually no sign of stopping. Not only is the company retaining prior customer revenue at 149%, but it’s still doubling its client base year over year. So long as these metrics remain strong, FUEL will continue to increase its top line.

As for tempered guidance, the market had a knee-jerk reaction following the press release on August 5th: shares pushed down as much as 31% on an 8% shed in guidance. Not only is there a wide discord between these figures, but FUEL is also brand new to the public market. Misses and beats are to be expected, and guidance should be taken with a grain of salt for the time being.

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As a general rule of thumb, I would not recommend buying into stocks with less than a few quarters on the market, which is why we are only recommending FUEL now. IPO investors often come in with inflated expectations and can be a fickle group of stockholders. Not only are these buyers quick to get in, but they’re often quick to get out as well.

This after-IPO volatility is simply the market’s way of fleshing out a fair price, testing the bottom (or top), and correcting the general mis-pricing by underwriters. Sometimes underwriters hit the target, and sometimes they don’t. In the case of FUEL, they happened to be just a tad off the mark.

At this point, though, we have to consider that the bulk of these skittish buyers have already sold out. Not only do we know that FUEL was initially filled with hyped up IPO investors, but we can do some basic chart analysis to see a bottom forming:


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Moving from left to right, we first notice a steady downtrend beginning in early February. The decline is steep, and on much higher average volume than in previous months. This trend of heavy selling on heavy volume continues until mid-March, at point A.

At point A, volume spikes dramatically, and we have a significant opening gap, but for the three months that follow, there is no longer a downtrend. Why? Because the bulk of sellers had exited at point A, heavily exhausting selling pressure.

At point B, we see another opening gap. This was the market’s response to tempered estimates and nothing more. Again, we have high selling pressure, and our price begins to flatten out around $15.25.

The most important thing to note here is that while the price movement was similar in both cases, volume at point B was significantly less than volume at point A. This tells us FUEL is running out of sellers and is now operating in a buyer’s market.

Additionally, we can look at our MFI, or Money Flow Index. This is a volume-weighted oscillator used in a similar fashion to RSI. When above 80, MFI indicates overbought. When below 20, it indicates oversold. At point C, our MFI falls well below our blue line at 20, further indicating a bottom for FUEL near current prices.

We’re buying FUEL below $17 with a one-year price target of $42. Shares currently trade at $14.55. Put your stop-loss at $13.50.

Portfolio Snapshot and Updates*** As a result of hitting previously established stop losses, several stocks will be removed from our portfolio and updates section beginning next issue. Because we know some of our readers may not sell at our stop-loss recommendation, we generally continue to cover companies for a few issues months after these stop losses are hit. However, we must remove these at some point so we can better focus on the remaining portfolio. For record keeping, our closed portfolio will show these stocks as being sold at the price of the stop loss. In the event that a stop loss would not have been triggered (i.e. a gap opening) we continue holding shares to remain genuine. Stocks that will no longer be covered beginning next issue include CIMT, PRCP, and CLRX.

Anika Therapeutics (NASDAQ: ANIK) Snapshot:

Anika develops products for tissue protection, healing, and repair. The company’s products are based on a naturally occurring polymer called hyaluronic acid (HA). Our bodies use HA to enhance joint function, protect soft tissues, and support skin elasticity.

Anika’s viscosupplementation products are used to treat osteoarthritis, correct facial wrinkles, aid in ocular surgery, and prevent post-operative internal adhesions. Anika receives marketing support from major drug manufacturer Johnson & Johnson (NYSE: JNJ)

Updates:

No new updates this issue.


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***AVT, Inc. (OTC: AVTC)Snapshot:

AVT, Inc. develops and manufactures automatic retail equipment for a variety of companies including Victoria’s Secret, Bacardi, and Wal-Mart. AVT’s product line includes physical hardware such as its Automated Express Market System and software products including AVTi Media, Touch Screen Vending, and the Vending Management System, which allows retailers to monitor sales statistics and inventory.

Updates:

Back in February, we sold half of AVTC for a 136% gain. It looks like we were right to do so, because the price topped in March, and we’ve been on a gradual decline ever since. Volume has been consistently low, and our remaining shares now sit at a 7% gain. Nothing exciting going on here.

We’re selling our remaining shares of AVTC to lock in an average gain of 65%.

CollabRx, Inc. (NASDAQ: CLRX)Snapshot:

CollabRx provides cloud-based analytics to inform professional health care decisions, with a strong focus on genomic sequencing and oncology. The company’s participating clinicians analyze biological data and research to create medical and diagnostic tool frameworks. Collab sells these frameworks as software services that doctors use to inform care selection.

Updates:


Cimatron Ltd. (NASDAQ: CIMT)Snapshot:

Cimatron provides computer-aided design (CAD) and computer-aided manufacturing (CAM) software to the manufacturing industry. The company offers its GibbsCAM and Cimatron E. product lines.

Serviced industries include aerospace, automotive, energy, medical, and defense, with the bulk of sales stemming from automotive.

Updates:


***Elbit Systems Ltd. (NASDAQ: ESLT) Elbit produces a variety of unmanned vehicles, ranging from a portable 7 kg reconnaissance plane to a 4,000 kg boat outfitted for surface and anti-mine warfare. The company also provides thermal and laser imaging, head-mounted displays for infantry, and various aerial navigation systems.

Updates:

Elbit has been awarded a three-year, $80 million contract to supply its C4I (Command, Control, Computer, and


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Communications) systems to an unnamed Latin American country. Solid news, but that’s really just a drop in the bucket for Elbit at this point.

Second quarter results showed revenue of $703 million, which is flat with the year prior. This lack of growth here is concerning, as operating cash flow has been cut by nearly 75% in the same time. We’ve also dropped below support levels at $59 this month, which isn’t a good sign.

We’re locking in a 15% gain and selling ESLT.

Fanuc Corporation (OTC: FANUY) Snapshot:

Fanuc Corporation is a leader in industrial robotics, with a product lineup that includes factory automation systems, laser cutting, motion control, and compact motors. Fanuc serves a wide range of industries including aerospace, agriculture, construction, metal forming, and automotive manufacturing.

Updates:


***FLIR Systems (NASDAQ: FLIR)

Snapshot:

FLIR designs and manufactures various imaging systems, autopilot designs, and unmanned border control towers. The company is the leading producer of Electro-Optical/Infrared (EOIR) technologies. FLIR produces unmanned long-range and laser targeting systems that are operational on unmanned aircraft, ground vehicles, and marine vessels (a.k.a. drones).

Updates:

No recent news for FLIR, but the chart spells nothing but trouble. Both resistance and support have trended downward since May, which is never a good sign:

We’re selling now to prevent any further losses on our gains and locking in a small 3.3% gain.


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Foundation Medicine, Inc. (NASDAQ: FMI)Snapshot:

FMI uses DNA sequencers to generate genomic and molecular data used to inform pharmaceutical companies in drug development and physicians in clinical practice, specifically in regards to cancer research and treatment.

Foundation’s leading products are the FoundationOne and FoundationOne Heme genomic platforms. These platforms provide advanced sequencing that matches DNA mutations within a tumor to targeted therapies either on the market or in development. By identifying these mutations and matching them with available therapies, FMI enables researchers and clinicians to pick the best option for defeating cancer.

Updates:

In the company’s latest 10-Q filing, FMI showed $14.5 million in revenue (a 145% increase year over year) and a net loss of $13.8 million (a 35% increase year over year). These revenue increases were primarily offset by heavy increases in marketing (149%) and R&D (37%) expenses.

With $97 million cash in hand, the $14 million net loss here isn’t a concern at all. FMI is a growth play, and we want to see heavy efforts in marketing and product development at this stage.

Hanger, Inc. (NYSE: HGR)Snapshot:

Hanger provides orthotic and prosthetic services by distributing and fitting components such as artificial limbs. The company operates through its Patient Care, Distribution, and Therapeutic Solutions segments. Hanger is working to consolidate the industry and is beginning to commercialize robotic solutions such as bionic limbs.

Updates:

Hanger Director Stephen Hare picked up a $22,000 block of shares on August 26th, boosting his stake by about 3%. Not a huge move, but insiders only buy for one reason: They know the stock is undervalued.

We doubled our stake in HGR last month and are already up 7.3% on that second buy. If you haven’t done so yet, make sure to get in while HGR is still cheap.

Hansen Medical, Inc. (NASDAQ: HNSN)Snapshot:

Hansen is the leading player in flexible medical robotics. The company markets three robotic systems: the Sensei X, Artisan Control, and the recently FDA-cleared Magellan System. These systems allow for reduced operation time during vascular surgeries and other procedures requiring catheter use.

Updates:


Intuitive Surgical, Inc. (NASDAQ: ISRG)Snapshot:

Likely the biggest name in robot-assisted surgery, Intuitive Surgical develops a line of its FDA-approved da Vinci

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robots. These systems allow for ample range of motion, natural control, and fine tissue manipulation through the use of 3D imaging and multiple robotic arms that can be outfitted with virtually any surgical instrument.

Updates:

On August 22, ISRG received FDA approval for a new imaging device known as Firefly used in conjunction with the da Vinci Xi. Firefly allows surgeons to identify blood flow in vessels and tissue during procedures and specifically aids in gallbladder surgeries by offering better identification of bile ducts.

The direct impact of Firefly on the bottom line will likely be small, but better imaging means more applicable procedures and a higher adoption of the da Vinci Xi by surgeons in the future. This is great news for ISGR.

Iridium Communications Inc. (NASDAQ: IRDM)Snapshot:

Iridium is a global communications provider. The company offers the world’s most extensive voice and data service through a fleet of next-generation low-orbit satellites.

Updates:


iRobot Corporation (NASDAQ: IRBT)Snapshot:

iRobot is an American robotics company that serves the consumer, medical, enterprise, and military industries. iRobot’s product functions range from home cleaning to telecommunication to various military operations. iRobot currently generates the vast majority of its revenue from its Home Robotics division.

Updates:


Neostem, Inc. (NASDAQ: NBS)Snapshot:

Neostem, Inc. develops cell-based therapeutics. The company’s revenue-generating arm provides product development, distribution and delivery, and consulting services for development-stage biotechnology companies. It also offers contract development and manufacturing services to clients advancing in the regenerative medicine industry. The company is developing AMR-001, an autologous adult stem cell product to treat damaged heart muscle following an acute myocardial infarction.

Updates:

No new updates this issue, but you’ll need to begin to keep an eye out for the anticipated release of phase II data from Neostem’s PreSERVE AMI trial. We’re expecting the data to arrive in late December, but preliminary updates can and do happen.

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Oceaneering International, Inc. (NYSE: OII)Snapshot:

Oceaneering International provides engineering services and hardware primarily to customers operating in marine environments. The company’s services are marketed to oil and gas companies as well as the aerospace and construction industries. The company receives the bulk of its revenue from ROVs and Subsea Products.

Updates:

On September 3, OII President and CEO Kevin McEvoy met with institutional investors at the Barclays CEO Energy-Power Conference in New York, NY. Here are a few highlights from a handout provided by OII during the conference:

• OII expects to add 40 additional ROVs to its fleet in 2014• Expects record EPS in 2014 between $3.95 and $4.05• Expects higher operating income for all oil segments in 2014• Excellent five-year outlook

OmniVision Technologies, Inc. (NASDAQ: OVTI)

Snapshot:

OmniVision develops semiconductors for image sensing. The company’s products have applications in photography, entertainment, medicine, mobile phones, surveillance, and automotive technologies. The company produces sensors for the iPhone and was recently identified as the provider of sensors for Google’s (NASDAQ: GOOG) new flagship smartphone, the MotoX. In the automotive market, OmniVision provides what are called CMOS sensors for safety systems and driver assistance.

Updates:

In its latest 10-Q, OmniVision reported revenues of $406.5 million, up 22.8% sequentially and 8.8% year over year. Mobile remains the company’s largest market, contributing 69% of revenues.

EPS nearly doubled analyst estimates at $.78 per share, sparking a fairly strong rally on the announcement, but the news was overshadowed by a potential buyout. CEO Shaw Hong has responded to the rumors, saying:

“We recently received a preliminary nonbinding proposal letter from Hua Capital Management Ltd., or HCM, a Beijing-based investment management company, pursuant to which a group of investors led by HCM proposes to acquire all of the outstanding shares of common stock of the Company in cash at $29 per share....The Company’s Board of Directors is reviewing and evaluating HCM’s proposal. No decision has been made with respect to the proposed transaction and there is no assurance that this or any other transaction will be consummated. We are focused on operating our business. We do not intend to provide updates with respect to this or any other transaction, except as required by applicable law. We thank you in advance for your understanding.”

In other words, we’re probably not going to get any color on this situation until the decision is made final. In any case, the potential buyout is good news. If the deal goes through as is, we close out at $29 and secure a 90% gain. If it doesn’t, we know OVTI believes the company is worth much more, confirming our bull thesis.

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Perceptron, Inc. (NASDAQ: PRCP)Snapshot:

Perceptron produces 3D scanning and vision solutions for the manufacturing industry. The company earns approximately 90% of its business from the automotive industry. Services include software and hardware that provide measurement, inspection, and robotic guidance.

Updates:

On August 20, Perception announced full-year financial results for 2014. Revenues remained flat at $59 million, but the company posted record bookings of $69 million during the year. This has pushed the company backlog to $39 million, up from $30 million a year prior.

At the same time, EPS shed to $0.10 per share, but mostly due to one-time expenses. According to President and CEO Jeff Armstrong, profitability was impeded by a) delayed system installations that will be realized in 2015 and b) additional operating costs, primarily related to the management changes made over the course of the year.

Given this deferred revenue and non-repeating operational costs, we can expect the bottom line to improve significantly for Perceptron in 2015. This outlook is reflected in the company’s latest public announcement:

“In the shorter term, given our record bookings, present backlog, and new strategy, we are very confident that fiscal 2015 will show revenue growth. We believe this higher revenue will drive improvement in profitability in 2015 over the levels we are reporting for 2014.”

OPKO Health, Inc. (NYSE: OPK)Snapshot:

OPKO Health is a mid-stage biotechnology development and medical diagnostics company. OPK has a deep drug candidate pipeline spanning from kidney disease to cancer treatments. It also provides a revolutionary diagnostic test known as the 4Kscore, used in prostate cancer screening. The company’s proprietary diagnostic technologies allow doctors to keep blood-based tests in house rather than outsourcing to outside laboratories.

Updates:


Pixelworks, Inc. (NASDAQ: PXLW)Snapshot:

Pixelworks develops semiconductors used for processing multiple forms of video input into high-quality display. The company can alter low-resolution content into full HD or convert a slow frame rate into a high refresh rate. Pixelworks also offers 3D technology, noise reduction, and image ratio scaling.

With display technology entering a new innovation cycle and companies like Apple and Amazon entering TV, we expect a rebound from Pixelworks through the outsourcing of image processing.

Updates:


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Prana Biotechnology Limited (NASDAQ: PRAN)

Snapshot:

Prana Biotechnology researches and develops therapeutic drugs for various neurodegenerative diseases. The company offers a Phase II-a clinical trial product for the treatment of Alzheimer’s disease. The drug, labeled PBT2, treats underlying causes of brain and eye degeneration related to aging.

Updates:


Synaptics Inc. (NASDAQ: SYNA)

Snapshot:

Synaptics develops and manufactures touch-pad and touch-screen technology for PCs, tablets, and smartphones. Synaptics competes with Atmel (NASDAQ: ATML) and Cypress Semiconductor (NASDAQ: CY) in the mobile industry.

Updates:


Universal Display Corp. (NASDAQ: OLED) Universal Display provides materials and licensing for a new form of electronic display known as organic light-emitting diode (OLED), which is thinner, lighter, and more responsive than traditional displays. OLED displays also offer better visual properties such as higher contrast ratios and increased viewing angles.

Updates:


Technology and Opportunity Copyright © 2013, 111 Market Place, Suite 720, Baltimore, MD 21202. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Technology and Opportunity does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.

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Technology Opportunity - media.angelnexus.commedia.angelnexus.com/pdf/tao/tao-september2014-rdu.pdf · Robotic Bidding Rocket Fuel offers a bidding strategy, dubbed programmatic buying,