Former hedge fund manager Ian King believes we are on the verge of a revolution!
However, unlike the insurrection that resulted in American independence, this “Bot-Com Revolution” will be the biggest technological development of the new millennium, and a few companies will be the winners.
The Teaser
How would you feel about an extra couple of grand in your pocket every year?
Ian King is the classic “start on Wall Street and leave to help the little guy” tale. But don't be fooled, he's still out to make a buck just like the rest of us by editing and contributing to four of Banyan Hill's newsletters and its free weekly offering – Banyan Edge.
We have previously revealed his “ASI Stocks” and “Ultimate AI Stock“, among others.
The “extra couple of grand” claim comes from the money we will presumably save on everyday services by getting in early on the “Bot-com revolution.”
So, what exactly is this bloodless revolution?
Not Another Chatbot
Ian says “It's something that will change our lives for the better, practically overnight.”
It is a big claim, but one that he backs up by revealing that humanoid robots will have the biggest impact on our daily lives since the iPhone.
Industrial robots have been around since the early 1960s when they were installed on a General Motors assembly line.
However, these early robotic arms were purpose-built to complete specific tasks, like metalworking and applying nuts and bolts.
It and its successors have nothing on the first generation of humanoid robots.
These can explore their environment, lift and pick up common objects, and understand basic commands.
They also possess another feature that makes them revolutionary…artificial intelligence.
Elon Musk has called Tesla's AI-equipped Optimus robot “the biggest product ever of any kind.”
Jeff Bezos has stated that AI (robots) “will solve problems once in the realm of sci-fi.”
For those of us who grew up wishing for personal robot butlers, our time has come! Still, there are a few things left to figure out before it becomes our new reality.
The Pitch
The way to play the “Bot-Com Revolution” is with four stocks that are only named in a report called “The 4 Stocks to Make A Small Fortune.”
It is ours with a trial subscription to Banyan Hill's Strategic Fortunes newsletter. The cost is $49 (normally $199) and it comes with a 30-day 100% money-back guarantee, monthly issues containing timely investment recommendations, three bonus reports, and more.
The Robot Reality
In two years, we will be one year away.
Aside from some outliers, this is the consensus timeline for getting humanoid helpers in homes.
However, three things must happen first.
Better AI
The first thing we'll need is technological advancement on several fronts.
This starts with robot dexterity that replicates human movement, which some startups are making progress on.
It continues with natural language understanding or simply put, better AI, like the kind only artificial superintelligence (ASI) can deliver.
This leads directly to the second thing that must happen…
Energy Efficiency
Replicating a human brain and scaling this up to potentially millions of robots would easily exceed the current power supply of the entire U.S.
No matter which way commentators like Ian slice it, there is no getting around this barrier.
It will take time for more energy capacity to come online, just like it will take time to reach the third thing:
Cost Reduction
IBM's first PC cost more than $8,000 in today's dollars.
Similarly, Motorola's Dynatac “brick” cell phone released in the 80s had a price tag of over $11,000 in today's rapidly depreciating dollars.
The most basic humanoid robot today starts at roughly $16,000 and goes up from there.
So, it will be a while yet before they become affordable enough for the average family to buy.
This means we're early to the robot party, and Ian has four stock picks we can cash in on before everyone else.
Revealing Ian King's “Bot-Com Revolution” Stocks
We got drips of information on each “Bot-Com” stock, here is what we know:
The Secret Workbot Company
- This robot maker has a $23 billion backlog of future sales.
- In July 2021, Wal-Mart introduced this company's workbot in 25 of its regional distribution centers.
The pick here is Symbotic Inc. (Nasdaq: SYM).
- Last year, Symbotic announced a $23 billion backlog of warehouse automation orders.
- Wal-Mart previously deployed Symbotic's robots in 25 of its distribution centers and has since expanded the partnership.
Apple's Next Big Thing
- Apple is apparently working on a home device featuring an iPad-like screen connected to a robotic limb.
- AI will be central to the product that could be announced this year and one key supplier stock is set to surge.
Not much to go on here, so I will venture a guess and say this is Apple's rumored robot manufacturer Hon Hai Precision Industry Co. Ltd. (TPE: 2317).
The Robot Driver
- This small company has discovered a robotic solution for regular vehicles.
- Its “robot driver” technology can even be retrofitted to existing long-haul trucks.
A few companies are working on solving this, but one independent self-driving technology company is closer to commercialization than all the others – Aurora Innovation Inc. (Nasdaq: AUR).
- Aurora's self-driving system is designed to operate multiple vehicle types, from freight-hauling trucks to ride-hailing passenger vehicles, and more.
- The company is targeting April 2025 for commercial deployment of its autonomous driving technology in trucks.
The Nvidia of Agriculture
- This AI company is integrating robots with farming.
Even less to go on here and many agritech innovators are privately-held. However, if I had to guess, I would say Ian is talking about Trimble Inc. (Nasdaq: TRMB).
The company's agricultural technologies include both a hardware and software stack that aims to make farming operations more efficient.
A New Wealth Wave or Money Trap?
Who would have thought that more than 140 years after the introduction of the electric light bulb, we would have a second electrical boom?
As noted above, we don't get robot butlers serving us cold brews without more power-generating capacity.
This won't just spring up out of nowhere and will take time to build up. Think 5-10 years or more. Until the power grid catches up, robots will remain limited in their scope and nature.
So, the biggest gains are still a way out, but will Ian's picks tide us over until then with market-beating returns?
Symbotic: The automation tech company is only profitable on an adjusted EBITDA basis (it is not profitable). But revenue is growing by more than 50% year-over-year and it sees “expanding opportunities” ahead.
Aurora Innovation: Another cash-flow-challenged business. It is already a 2-bagger over the past year, but it will need to roll out its self-driving tech this year if shares are to keep marching higher. A dicey bet over the short term, but promising over the long term.
Hon Hai Precision (Foxconn): No way to know If this is Ian's Apple robot pick, but it is an essential manufacturer paying a 3% dividend, making it the safest pick of the bunch.
Trimble: The second pick we can't be sure about. However, I like the business for its diversity, as it also provides hardware for drones and satellite navigation systems, and at 11x current earnings, the price is right.
Quick Recap & Conclusion
- Former hedge fund manager Ian King believes we are on the verge of a revolution…a “Bot-Com Revolution” and a few companies will be the winners.
- Ian is talking about a robotics boom that will make humanoid robots as ubiquitous as cell phones and laptops.
- The way to play this “Bot-Com Revolution” is with four stocks that are only named in a report called “The 4 Stocks to Make A Small Fortune.” It is ours with a trial subscription to Banyan Hill's Strategic Fortunes newsletter which costs $49 (normally $199).
- The Greenbull was able to reveal at least two of Ian's picks for free – Symbotic Inc. (Nasdaq: SYM) and Aurora Innovation Inc. (Nasdaq: AUR), while providing semi-educated guesses about the other two.
- If you're reading this, you're too early. This is how the current state of the robotics industry can be summed up, but it's better than being late because some industrial automation stocks currently sport low absolute valuations.
Would you buy a human-sized robot helper if the price was right? Let us know in the comments.
Others are MU and AMD in his monthly newsletter.
Thanks for sharing these with us John!