Best of the Week
Most Popular
1.Gold Price Target of USD 2,300 - GoldCore
2.Greece Banking System Collapse Monday as ECB Pulls the Plug, Capital Controls Ahead of GrExit - Nadeem_Walayat
3.Why British Muslims Are Leaving Elysium Paradise for Syrian Hell - Nadeem_Walayat
4.Greece BANKRUPT! Financial and Economic Collapse to Follow IMF Debt Default - Nadeem_Walayat
5.Extreme Gold/Silver Shorting - Zeal_LLC
6.European Empire Strikes Back Against Greek Debt Fantasy, Counting Down to GREXIT - Nadeem_Walayat
7.Gold And Silver – Three Choices: Sell, Hold, Hold and Add. A Trading Treatise - Michael_Noonan
8.Gold and Silver Price Headed for Breakdown - Jordan_Roy_Byrne
9.Greece Crisis OXI - Raul_I_Meijer
10.Flatline Investing and Dead End Debt Schemes - Doug_Wakefield
Last 5 days
Financial and Commodity Markets Become Scary: Crash Point Or Turning Point - 5th July 15
A Revolutionary Pope Calls for Rethinking the Outdated Criteria That Rule the World - 5th July 15
Forget 'Haircut', Instead Syriza Plans Beheading of Greek Bank Depositors, Theft of Deposits - 5th July 15
The Pentagon’s 2015 Strategy For Ruling the World Through Endless War - 5th July 15
United States Celebrates the Disastrous Secession From Great Britain - 5th July 15
Greece Referendum Vote Result Forecast Yes Win, But Depression Will Continue - 5th July 15
The Great Greek Economic Depression - 4th July 15
Happy 4th of July Stock Market Analysis - 4th July 15
The Most Pressing Reason Yet You Want to Avoid Investing in Retail Stocks - 4th July 15
Fed’s Full Normalization and the Stock Market - 3rd July 15
The U.S. Dollar's 2014-2015 Rally: Wave 3 in Action - 3rd July 15
Stock Market Where are we? And where are we Going? - 3rd July 15
Xi’s Anti-Corruption Campaign Is Key to China’s Prospects - 3rd July 15
How the New Iranian Nuclear Deal Will Impact Crude Oil - 3rd July 15
China's Stock Market Rollercoaster Ride Continues - 3rd July 15
Gold Stocks Cheap to Buy but Not for Long - 3rd July 15
Capital Controls and a Bank Holiday in Greece… Here’s How You Can Profit - 3rd July 15
Greece's Varoufakis: I will Resign if there's a 'Yes' Vote - 2nd July 15
The Student Loan Bubble: Gambling with America’s Future - 2nd July 15
Inflation Is Lurking, but This Asset Can Protect You - 2nd July 15
Three Total Wealth Stock Investor Tactics You’ll Need Because Greece Isn’t Over - 2nd July 15
Why This $5.6 Trillion Investor Profit Boom Is Set To Take Off - 2nd July 15
Greek Debt Crisis: "Too late to prepare now" - Video - 2nd July 15
Guaranteed US Dollar Death Dynamics - 2nd July 15
The Greek Stress Test & The Reality Of Incremental Changes - 2nd July 15
Forget Drachmas Greece Syriza Government Could Instruct Central Bank to Print Euros! - 2nd July 15
Greece Debt Crisis Trigger for Stock Market Crash or Bull Rally? Video - 1st July 15
Gold Stocks Break Below 2008 Low - 1st July 15
SPX Stock Market Retracement May be Over - 1st July 15
Silver Tunnel Vision 'Experts' - 1st July 15
Gold And Silver - Monthly, Quarterly Ending Analysis - 1st July 15
Europe’s Controlled Demolition - 1st July 15
The End of Dow 18,000; Bailouts No Longer Extended  - 1st July 15
Athens Mayor: Greek Government Should Resign - 1st July 15
China Stocks - This Is What a Bubble Looks Like - 30th June 15
Stocks Plunge on Greece Euro-Zone Financial Armageddon Blackmail - 30th June 15
Greece Crisis Shows Importance of Gold as Europeans Buy Coins and Bars - 30th June 15
Stock Investors Express Route to Profits in the Healthcare Sector - 30th June 15
Beyond the Greek Impasse - 30th June 15
Gold GDXJ : Impulse Move Pending - 30th June 15
Fed Interest Rate Increase Could Be Best Thing to Happen to Gold - 30th June 15
Marc Faber - Greece is Basically Bankrupt - 30th June 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

China Stocks - Where are they going?

I’d Like You to Meet “Cortana” My Artificial Intelligence

Companies / Technology Apr 26, 2014 - 05:18 PM GMT

By: Money_Morning

Companies

Michael A. Robinson writes: I’d like to introduce you to Cortana.

And let me tell you: She’s awesome.

Cortana can search the Internet, set up reminders, shift calendar appointments, manage your mishmash of meetings, find restaurants, send text messages, and place phone calls. And, as good as she is right now, Cortana only seems to get better the more that I deal with her. The longer we work together, the more she seems to understand my habits and anticipate my needs.


She never complains.

And she never takes the day off.

In short, I can only say that Cortana is the best personal assistant I’ve ever had.

Personal digital assistant, that is …

Based on a 26th-century artificial intelligence (AI) character in the smash hit Halo videogame series, Cortana made her grand entrance as part of Windows Phone 8.1 – the key new update for Microsoft’s mobile operating system (OS).

After more than two years in development, she arrives at a crucial juncture for Microsoft. In fact, one analyst recently wrote that “Microsoft’s bold new mobile efforts rest on [Cortana's] virtual shoulders.”

Truth be told, Microsoft is secretly hoping that the prim and efficient Cortana manifests her latent “dark side.”

You see, the folks in Redmond really want Cortana to become a “Siri Killer.”

But we just want her to point us to the next “killer app” – because we can cash in.

Indeed, we will cash in.

And Cortana and I will now show you how …

A Message From Microsoft

Most “smartphones” today come with voice-recognition software. That’s what Cortana is, you know – voice-recognition software: You speak a question into your phone and have the results come back to you via the wireless Web.

That’s what Siri is – the already-existing Apple Inc. (NasdaqGS: AAPL) counterpart to Cortana.

Although she’s a laggard in terms of her late arrival to market, Microsoft says Cortana will only get better with time because she will learn your habits and begin to anticipate your needs.

Whether that happens or not, I believe Microsoft’s decision to enter the voice recognition field means this technology has now passed the so-called “tipping point.” By that I mean it’s no longer just a cool “nice-to-have” feature – it’s an integral part of personal computing.

And Microsoft believes Cortana can advance a tech platform that will change the way we interact with our mobile devices, our cars… and even our homes.

Because we understand this, we have an advantage. We’ve identified a small-cap leader that plays a key role in just about every aspect of voice-recognition technology.

A New Market

As you can probably tell, I’m big believer in voice recognition. I use it all the time to send text messages to my wife and kids. Ditto when I want to quickly reply to an email on my iPhone.

Not only that, but I also use it my Acura MDX almost daily. When I want to make a call or set my navigation system to a new address, I just push a button and talk to the friendly female voice assistant.

I got immersed in “voice-rec” technology with the introduction of the Apple iPhone 4S back in the fall of 2011. That’s the smartphone Apple used to launch Siri (hence, the “4S” designation) – the first voice bot truly designed for the masses.

The market has grown from there. Google Inc. (NasdaqGS: GOOG) offers a digital voice assistant for mobile phones running its Android operating system through its “Google Now” service. And now Microsoft has entered the fray.

And while each of these three giants has strong entries in the voice-recognition market, none is the kind of “pure play” that offers maximum profit opportunities.

That’s why I think investors would do well to take a look at Nuance Communications Inc. (NasdaqGS: NUAN).

This small-cap leader made its name as the technology behind Apple’s Siri. But the firm’s science, engineering, and market understanding run much deeper than that.

In fact, the company actually traces its roots back to two legendary tech pioneers. The first is Ray Kurzweil, the noted futurist and author, who founded an optical-character-recognition (OCR) firm back in 1974.

The second is SRI International, a spinoff of Stanford University. In 1994, the forerunner of Nuance was itself spun off from SRI to commercialize speech-recognition technology originally developed for the U.S. government.

What followed was a series of complex mergers and acquisitions that in 2005 created the current Nuance Communications.

Let’s take a closer look at this important player.

The Nuance File

Today, Nuance is a thriving multinational software company specializing in both voice recognition and imaging technology. It has about 4,000 patents covering all aspects of both tech fields.

Nuance services a dozen industries, including mobile, automotive, legal and medical. The company has more than 1,200 speech scientists. No wonder it has a voice assistant that speaks 38 languages: The company works with more than 2,000 global partners.

Some analysts have suggested dark days are ahead for Nuance because Apple has recently shown an interest in moving voice tech in house. And it’s true that Apple recently purchased Novauris Technologies for an undisclosed sum. Apple hasn’t commented, but the trade press says Apple bought Novauris specifically to beef up Siri.

However, that doesn’t necessarily mean Apple will end its relationship with Nuance. After all, Novauris itself was a spin-off of Dragon Systems, a voice tech firm owned by – Nuance.

But let’s just assume that Apple and Nuance stop working together. I don’t think that spells disaster for Nuance. Far from it.

Nuance has developed an advanced Cloud-based artificial intelligence app dubbed Project Wintermute. Not only does it work on smartphones, it also works with smart TVs and other Web-connected devices.

In a test of Wintermute’s capabilities last summer, Forbes said the software could seamlessly tell users how many points their favorite basketball player scored, or even show a game on TV based on a user’s viewing patterns and a simple dictation such as “Throw on the game.”

But Nuance isn’t banking solely on the success of Wintermute. The company simply plays too big a part in the global tech ecosystem to let the loss of one customer, even a prestigious one, hold it back.

Consider that Nuance is already an automotive powerhouse…

Nuance’s Dragon Drive is an innovative voice recognition platform that is becoming a key part of today’s tech-centric automobiles.

Dragon Drive allows users to sync destinations and other valuable data from their mobile devices that can be activated via voice commands while driving.

A motorist using the software also can seamlessly transition from getting GPS directions, to sending an e-mail, to posting on social media – all through Dragon Drive built into the dashboard.

This explains why it already works with Detroit’s Big 3 automakers. as well as such foreign nameplates as Hyundai Motor Co. (OTC: HYMTF).

All told, Nuance has placed its speech technologies in more than 90 million automobiles.

Nuance sets the standard for medical voice recognition, a field that accounts for about half its sales.

During this year’s first quarter alone, Nuance signed 12 new healthcare clients. It also expanded its longstanding relationship with the U.S. Department of Veterans Affairs, which has roughly 9 million vets receiving health services.

Nuance also has scored with its Dragon Medical 360, a software package that provides essential documentation solutions to more than 300,000 physicians. It allows doctors to orally fill out patient forms for electronic records and is intuitive enough to make corrections based on stored patient data.

Lawyers also use voice recognition like Nuance’s Dragon NaturallySpeaking. The software helps them prepare documents for court and perform data entry – all by spoken command.

And consumers turn to Nuance for products like Voice Control 2.0 and Dragon mobile apps to dictate various commands throughout their day.

At a recent price of $16.25, Nuance has a market value of about $5 billion. The stock is trading at a forward Price/Earnings (P/E) ratio of about 13, a discount of nearly 40% from the 18 multiple of the Nasdaq 100.

Yes, the company needs to improve its financials. It has continued growing sales over the last several quarters, but is losing money. In this year’s first quarter, Nuance posted a net loss of $55.4 million on sales of $470 million.

But this is a “special-situation” play with plenty of upside.

Nuance’s share price zoomed steeply in late 2011 and early 2012 on speculation that Apple would buy the power behind Siri. When that didn’t happen, the stock sold off from high it had reached at roughly $30 a share.

So if the stock could just return to its two-year high, we’d be looking at a double from here.

No wonder billionaire investor Carl Icahn has increasedhis stake in the company. According to MarketWatch,he recently added nearly 1 million shares to his stake, bringing his total Nuance holding to 60.8 million shares.

Last August, the company adopted a “poison pill” to block a hostile takeover. But Icahn still bought more stock.

Icahn is normally quite chatty about his holdings. But he’s had nothing to say about his Nuance investments.

This much is clear: This is an opportunity to invest in a firm that offers the broadest portfolio of technology in the growing sector of voice recognition. And we believe you’d be doing so at a discount price level.

As such, it belongs in the high-risk portion of your portfolio.

But investors who are patient enough to watch the company rebuild its finances over the next few quarters could be richly rewarded.

We’ll be watching.

And so will Cortana.

Source : http://strategictechinvestor.com/2014/04/id-like-meet-cortana/

Money Morning/The Money Map Report

©2014 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Biggest Debt Bomb in History