Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Pre-COVID US Economy Wasn’t All That Great Either - 4th Dec 20
Bitcoin Breath Taking Surge - Crypto Trading Event - 4th Dec 20
Platinum Begins A New Rally – Gold & Silver Will Follow - 4th Dec 20
Don't Let the Silver (and Gold) Bull Shake You Off! - 4th Dec 20
Stronger Risk Appetite Sends Gold below $1,800 - 4th Dec 20
A new “miracle compound” is set to take over the biotech market - 4th Dec 20
Eiro-group Review –The power of trading education - 4th Dec 20
Early Investors set to win big as FDA fast-tracks this ancient medicine - 3rd Dec 20
New PC System Switch On, Where's Windows 10 Licence Key? Overclockers UK OEM Review (5) - 3rd Dec 20
Poundland Budget Christmas Decorations Shopping 2020 to Beat the Corona Economic Depression - 3rd Dec 20
What is the right type of insurance for you, and how do you find it? - 3rd Dec 20
What Are the 3 Stocks That Will Benefit from Covid-19? - 3rd Dec 20
Gold & the USDX: Correlations - 2nd Dec 20
How An Ancient Medicine Is Taking On The $16 Trillion Pharmaceutical Industry - 2nd Dec 20
Amazon Black Friday vs Prime Day vs Cyber Monday, Which are Real or Fake Sales - 1st Dec 20
The No.1 Biotech Stock for 2021 - 1st Dec 20
Stocks Bears Last Chance Before Market Rally To SPX 4200 In 2021 - 1st Dec 20
Globalists Poised for a “Great Reset” – Any Role for Gold? - 1st Dec 20
How to Get FREE REAL Christmas Tree 2020! Easy DIY Money Saving - 1st Dec 20
The Truth About “6G” - 30th Nov 20
Ancient Aztec Secret Could Lead To A $6.9 Billion Biotech Breakthrough - 30th Nov 20
AMD Ryzen Zen 3 NO UK MSRP Stock - 5600x, 5800x, 5900x 5950x Selling at DOUBLE FAKE MSRP Prices - 29th Nov 20
Stock Market Short-term Decision Time - 29th Nov 20
Look at These 2 Big Warning Signs for the U.S. Economy - 29th Nov 20
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

You Can’t Afford Not to Invest in This Latest Yesla Technology

Companies / US Auto's Apr 01, 2015 - 10:28 AM GMT

By: Money_Morning


Michael A. Robinson writes: It’s not often a so-called financial writer so blatantly misreads a key tenet of the technology business.

But that’s just what I saw in a piece I came across a couple of weeks ago.

Offering his take on Tesla’s announcement that its new Model S sedans would feature some “self-driving” technology, the columnist bemoaned the vehicle’s high price. He worried that “America’s wealth gap will spread to the highways,” leaving regular folks behind.

However, this is how consumer technology always works – in the short term.

The wealthy are early adopters – they act as guinea pigs, essentially – giving tech companies the capital and time to perfect their technology and make it affordable.

So, instead of bashing the rich, today I’m taking a different route.

I’m going to show you what I think is the best way to profit from the $15 billion self-driving tech sector.

That piece of the greater automotive tech industry is on track to more than double by the end of this decade – and I think this stock could double a lot sooner than that.

But first, I’m going to show you why right now – before this “rich folks’ market” hits the mainstream – is the best time to invest…

Watch the Early Adopters

I’ve spent some time as an ink-stained journalist – and won a few awards while doing so – and so I’m quite familiar with the saying “never let the facts get in the way of a good story.” And, apparently, so is that Yahoo Finance writer.

The author of the story, Rick Newman, calls self-driving technology “the next big plaything for the rich” – and then adds that “an automotive revolution may be at hand, but a people’s revolution it is not.”

From where I stand, Newman is dead wrong about the likelihood of autonomous vehicles eventually reaching everyday consumers. However, he is right about self-driving technology being mostly for the well-off right now.

And that’s a good thing.

In my world, the world of Silicon Valley, we need early adopters. They are willing to pay top dollar to get the latest tech advances before they go mainstream.

These early adopters pave the way for mass markets by establishing the economies of scale needed to drive down prices so average consumers can afford to buy.

Just look in your living room. In August 1998, The New York Times decried what it called “sticker shock” for high-definition televisions, noting the “least expensive ones will cost $8,000.”

Today, thanks to early adopters, you can find HDTVs that are 50% larger, twice as sharp, use one-quarter the electricity, are 70% thinner and cost up to 90% less.

Similar stories can be told about home computers, cell phones, digital cameras – even the car itself.

The same thing is happening in the self-driving technology today.

Look, Ma – No Hands

We’re on the verge of mass adoption of what’s known as advanced driver assistance systems (ADAS).

Simply stated, with these platforms cars can accelerate, steer and brake themselves.

Before we go any further, however, I should note that the new Tesla Model S won’t be a truly driverless car.

The new Model S’s capabilities will be limited to some highway safety and self-parking features. Moreover, the automated systems Tesla Motors Inc. (Nasdaq: TSLA) and other automakers have in the works for the next few years will be limited to making vehicles safer and more efficient on highways

Because of safety concerns, regulatory hurdles and not-quite-ready technology, I don’t think we’ll see true hands-free driving on U.S. roads until at least 2025.

Meanwhile, thanks to ADAS tech, look for collision avoidance, “lane keeping” and self-braking systems to be added to our luxury autos in the near term. And I think the federal government will mandate at least some of these safety systems to be included in all new cars in the next half-decade or so.

Just look at what’s happening with backup cameras.

By July 2018, every new car and light-duty truck sold in the United States must be equipped with backup cameras. This will give carmakers a great opportunity to sell connected car tech – such as Wi-Fi-connected infotainment units and in-dash GPS navigation systems – and ADAS tech to the mass market.

Transparency Market Research recentlyestimated just the ADAS market at $14.8 billion with 2013 as the base year. As the technology migrates from Lexuses to Scions, the sector will soar by more than 19% annually through the end of the decade, when it will hit $50.4 billion.

That means ADAS and autonomous vehicles meet the mandate of Rule No. 3 of my five-part system for building wealth through tech investments – “Ride the unstoppable trends.”

I’ve already told you folks about how “backup-camera envy” is driving the auto and tech sectors forward.

And once people start seeing it in action, I’m sure we’ll also be talking about “self-parking envy.”

Our Play

That’s why I’m bringing Mobileye NV (NYSE: MBLY) to you today. This Jerusalem-based firm is a leader in “computer vision” technology that helps cars detect and then avoid other vehicles, pedestrians and roadway markings.

Mobileye makes a chip and ADAS systems that make collision-avoidance technology possible. The company’s technology applies algorithms to video images taken from connected cameras.

Mobileye’s technology can deliver “lane keeping” – automated steering that keeps a car in the center of its lane and allows for short periods of hands-free driving. It also has lane-departure modules that warn drivers of encroaching vehicles.

The firm’s Automatic Emergency Braking System detects imminent collisions. It can warn the driver or, as a last resort, trigger self-braking to prevent collisions.

And whether or not regulators will allow it, Mobileye claims its technology will allow hands-free highway driving by next year.

No wonder so many major carmakers are anxious to do business with the firm. It’s working with at least 15 global leaders, including Audi AG, Ford Motor Co. (NYSE: F), General Motors Co. (NYSE: GM), Tesla and Volvo AB.

Founded 15 years ago, Mobileye went public in July 2014. Its initial public offering (IPO) was highly successful, jumping some 48% on a day when the markets were slumping.

Now trading around $42.50 a share, Mobileye has a $9.20 billion market cap – and it’s a growth machine. Over the past three years, sales have increased an average 107% annually, meaning they’re doubling every eight months.

Let be conservative and project stock appreciation at only one-fourth that rate.

That would give us a double in just 33 months.

Our Plan

However, as much I love Mobileye and its technology, I am concerned about the stock’s volatility – it’s now 42% off its peak, though still 15% up from its IPO price.

I think this is a great stock to own over the long haul, but Mobileye could take investors on a roller-coaster ride over the next several quarters. This is something you see a lot with recently issued stocks.

You could use one of two strategies to tap into this tech winner’s enormous growth.

You can put Mobileye in your retirement portfolio and simply not worry about the volatility. In that case, by definition, you’d have a long horizon.

Or, short-term investors could use my “Cowboy Split system. You can buy half of your intended position now at market. Then put in a lowball limit order to buy another half at a 20% discount.

That way you turn the volatility to your advantage, boost your long term gains and get on the road to wealth.

If you ask me, becoming rich is a whole lot better than bashing the wealthy.

Mobileye’s IPO investors certainly have been able to become rich, having already made peak gains of 141.1%. But the company’s pre-IPO investors are doing even better.

At least three big investment firms, just on Mobileye’s IPO, made more than 300% from what they put into the company a year earlier.

In the past, regular investors like you could not take part in such private pre-IPO deals – and make these kinds of profits. However, I’ve negotiated an exclusive deal that allows everyone to get in on the hottest pre-IPO market in history.

It’s a way for you to invest in private, hyper-growth technology companies before they go public – just like the big-time investors at Fidelity Investments, BlackRockInc. and Wellington Management Co. LLP were able to do with Mobileye.

The money we can make here is huge. And this is an exclusive arrangement that I’ve put together for you all.

I’ll provide all the details for you very soon in a special message. Keep an eye on your mailbox for that.

P.S. I encourage you to “Like” and “Follow” me at Facebook and Twitter. There you’ll find a community of friends, colleagues and readers who are eager to make big money in tech stocks not in some future time… but right now – today.

Source :

Money Morning/The Money Map Report

©2015 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:

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

© 2005-2019 - 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

6 Critical Money Making Rules