10 bagger: TraceSafe Inc. (TSF in Canada, UTOLF in U.S. with OTCQB listing in near future)
Industry: Real-Time Location Services (including Contact Tracing)
Notable Management:
Mr. Wayne Lloyd (C.E.O. of TraceSafe)
Dr. Dennis Kwan (C.E.O of TraceSafe Technologies),
Why We Love it:
By the time I finished my DD, and I did quite a bit of it, TraceSafe was an auto-buy for me and a pleasure to write about. But before diving in, I had questions; plenty of them. I believe that investors should enter every opportunity with skepticism. It gives you a clearer head and reduces potentially dangerous levels of FOMO (fear of missing out). FOMO can drive valuations of stocks to scary levels and it rarely ends well, as retail buyers like you and me buy the hype on a company while bigger players exit their positions.
Smaller growth-oriented companies can often have new, exciting technology that captures the imagination of the market, but smart investors, retail or otherwise, always look for one key milestone before buying in: validation. Without proof that a company is successfully penetrating their market, you’re buying the idea instead of the reality.
When I first looked at Tracesafe in the autumn of 2020, I was impressed by the technology they were bringing to market with an experienced management team. But I didn’t invest my hard-earned money because I needed to see real partnerships with big-market companies. Cutting edge technology, for all its impressiveness, isn’t worth much to a company without the means to monetize it. If you’re buying the idea, you’re making a leap of faith, and that is a little too close to gambling for me.
So much has happened since then that the leap of faith has become an open door to walk through. Validation is here.
But before we get to all that, let’s set the foundation, because none of this would have been possible without the management team, which is one of the most impressive parts to the story. The C.E.O., Dr. Dennis Kwan, and The C.T.O. Suresh Singamsetty, have been developing technology companies in the wearables space for years. Dr. Kwan co-founding Martian Watches, the first ever voice-enabled smartwatch. He was also V.P. of a Bluetooth company that was acquired for $160 million and he personally owns more than ten patents in wireless/bluetooth technologies. Mr. Singamsetty, the software expert, was with Dr. Kwan at Martian Watches. He owns more than 20 patents himself. The third member of the team, Gord Zeilstra, is another massive successful industry veteran. His specialty is driving companies’ global sales footprint. His success in the building of Monster.com and S.A.P. into global brands is an exciting indicator of where TraceSafe is headed.
So what about validation? Let’s begin with its partnership with Tritan Software. You probably haven’t heard of them, but I have no doubt you have heard of Carnival Cruises, Norwegian Cruise Lines, and Royal Caribbean. Tritan is the health and safety software provider for 95% of the entire global cruise line industry. I’ll put that in word form to give it the attention it deserves: NINETY FIVE PERCENT of the global cruise line industry.
Tritan is responsible for collecting, storing and securing the privacy of health information for all passengers, in addition to quality and incident management and a host of other software solutions. The CDC (Centre for Disease Control and Prevention) will most certainly have compliance requirements for resumption of sailing operations and Tritan knows this, which is why they are acting now, and acting swiftly. (Countless other companies approached Tritan, but they chose the experience and superior security of TraceSafe). The partnership was only recently announced and it remains to be seen how entwined the two companies will become, but contact tracing is only the tip of the iceberg (sorry, not the best cruise line analogy). For a clearer picture of the entire iceberg, we can look to Walt Disney’s iconic theme parks.
It is no secret that Disney theme parks have always placed a premium focus on customer experience, and one of the most effective ways they achieve this is through the “Magic Band”, which is essentially a wearable device that customers use to enter the park, unlock their hotel rooms, and buy food and merchandise. A one stop shop on your wrist.
This is where the cruise industry is headed. With a wearable on your wrist, you can enjoy all the same conveniences as the Magic Band combined with a contact tracing and safety monitoring device, all in one device.
So, that’s it? The cruise lines?
Even if it were the only partnership in the pipeline, it may have been enough to turn TraceSafe into a major global player, but it is just one of many projects, both ongoing and in the future. But even greater validation was announced just today (making me do some quick edits to this story)
TraceSafe, just today, announced a potentially game-changing purchase order. The agreement is to supply a global Tier 1 semiconductor manufacturer with 60,000 wearable units to be used across their enterprise. Professional services network Deloitte is managing the implementation of TraceSafe’s “next generation” of wearable products, which can be processed and paired within seconds, compared to about 3 minutes per device of other companies in the industry.
To give you an idea of the magnitude of this agreement, Dr. Kwan is quoted “This is one of the largest deployments of its kind anywhere in the world and we are very proud to be working with technology innovators to deliver a product so important in enhancing the health and safety of their workforce.”
I will forgive you if you stop reading now. The above agreement, combined with the cruise line partnership, is honestly enough for me and for many investors, but for those who stick around, the story actually gets considerably better.
The total wearable market is projected to reach $60 billion, and a large part of this will focus on corporate safety. In this way, Tracesafe has a bit of an advantage, as the company has a presence in Southeast Asia. You will remember that long before we realized the impact of the pandemic, several Asian countries were already scrambling to deal with the first wave. Since that time, we have dealt with each wave several months behind Southeast Asian countries. This time lapse has given TraceSafe a window into near-future conditions in the Western world. The best example of this is in Singapore, where they are closer to emerging from lockdown than we are in North America. Singapore has become the proving ground for TraceSafe technology., and it has gone perfectly. TraceSafe is being worn on construction sites for Boustead, a massive Singaporean construction company. This partnership has not only led to improvements in safety and security at Boustead, but it has also won TraceSafe the Singaporean National Innovation Award.
Closer to home, TraseSafe partnered with The World Junior Hockey Championships in Vancouver, Canada in December. The tournament was essentially a bubble-event that was completed safely using TraceSafe technology. T.T.G, the sponsorship firm that organized the event (and, incidentally, was instrumental in bringing The Winter Olympics to Vancouver in 2010) was impressed. So was Telus, the tournament sponsor. The future is very bright in venue tracing, with fans itching to return but needing a safe and proven way to do it.
There remains one incredibly large catalyst for growth, and some may find it the most interesting of all, but before we get to that (cough, Airbeam, cough), let’s quickly dispel any lingering doubts you may have:
Aren’t those wrist bands uncomfortable and a nuisance?
This is another part of the reason Tritan and others have chosen TraceSafe. Recall that two of the management team are pioneers of the wearable space with over 30 patents between them. The TraceSafe product has a battery that long outlasts any other in the industry and it is also incredibly lightweight and unobtrusive. Added to this is the
extended product line, with tags and credit-card style devices.
Discounting everything else in the pipeline, is anybody seriously going to get back on a cruise ship after all that has happened? Will the return to cruise lines be slow?
The high amount of bookings for the second half of 2021 says “no”, and so do experts in the field, who state that cruise line demand is higher than most other industry segments. Once people are vaccinated, the industry will return in a big way. Tritan understands this; hence the quick action.
But what about privacy? Isn’t this just another way for companies or governments to spy on us?
I honestly wondered about this because it seemed an obvious question, but the answer makes complete sense. If the TraceSafe software were downloaded onto your phone, perhaps there would be more skepticism on my part. We all value privacy and bristle when it is infringed upon. But these devices are only work-site specific, meaning that the wearables (and software embedded in them) are separate from your personal devices and they do not function once you leave the site. They only ensure health and safety through workplace tracking.
Aren’t margins higher on software than hardware? Will this make enough profit?
The answers to these questions vary, but they all begin with “yes”. Margins are indeed higher on software, and TraceSafe in fact is currently selling 50/50 between hardware and software (cloud computing), with a focus on moving to 20/80 in the coming months. The cloud-based real-time monitoring system does not, in fact, need an internet connection (which I’d say is important when you’re out at sea) as it is a bluetooth device. No user information is stored on the device and it has medical-grade privacy/security (remember the company’s origins). The administration functions are user-friendly.
What about the revenues?
Whatever exciting news you may hear about a company, it is always more reassuring to see actual revenues pouring in, even so soon after developing a contact tracing solution. TraceSafe could be forgiven for only being a quarter or two away from meaningful revenues, but luckily for investors, this isn’t the case. Based on video interviews in January, the company expects to continue their 100%-200% year over year growth, which puts them somewhere between a projection of $20-$32 million for 2021. Although it should be noted that I’m extrapolating these numbers by following growth patterns from previous quarters, this DOES NOT INCLUDE ANY NEW PARTNERSHIPS, INCLUDING THE AGREEMENT ANNOUNCED TODAY! (Oops, sorry. I seem to have left caps lock on there!).
And then there is the share float. Fully diluted, after all outstanding shares incentive-based options, the total share count will be under 70 million. This is a very small float, which appeals to most investors, as a company in a growth phase will have fewer obstacles to share price growth.
What about data? Data monetization is big business.
TraceSafe will have the ability to monetize data from their cloud-based software at some point in this process, although that shouldn’t be confused with personal data, which would never be shared, obviously. But corporations looking for trends in safety and efficiency would most definitely benefit from the analysis of general workforce data.
What else am I missing?
This is a bonus for the company that cannot be overstated. Airbeam. Ever heard of it? Before you read the bonus paragraph below, note that TraceSafe has invested into Airbeam and owns an impressive 9.9 million shares. Ok, go ahead and read about Airbeam now (Thanks to Stock Fam discord user “Aberdenov” for the assistance)
The 5G revolution is upon us. This revolution will be in the tens of TRILLIONS of dollars. Airbeam will be a player in 5G critical infrastructure. Their 5G micro cell network utilizing AI/ML with EDGE computing on the 60Ghz band will be a catalyst for smart cities enabling such things as autonomous vehicles.
Airbeam will also be deploying wireless cameras with unlimited storage and smart displays for advertising. The company is led by former executive and head of research and development at Qualcomm, Dr Karim Arabi, and along with Stockwell Day and his political connections, the future looks bright for the company. Airbeam's last private raise was back in 2019 with a valuation of 97 million. Since then they have gained traction with pilot projects in America, Qatar and the Philippines. An IPO is expected sometime in 2021 with a far higher valuation.
TraceSafe has openly talked about increasing shareholder value after the Airbeam IPO, including a potential dividend, which is unheard of for a growth tech company.
So you see how skepticism can lead to the DD that you need to uncover a company like TraceSafe. It has the management team, tech cutting-edge technology, the validation, the contracts, the blue-sky opportunity of an industry that will be a part of our lives, and an incredible piece of foresight to buy in early to a very hotly anticipated IPO.
Full updated report: https://mailchi.mp/tradersnewssource/new-repo...-650592?e=[UNIQID]
Industry: Real-Time Location Services (including Contact Tracing)
Notable Management:
Mr. Wayne Lloyd (C.E.O. of TraceSafe)
Dr. Dennis Kwan (C.E.O of TraceSafe Technologies),
Why We Love it:
By the time I finished my DD, and I did quite a bit of it, TraceSafe was an auto-buy for me and a pleasure to write about. But before diving in, I had questions; plenty of them. I believe that investors should enter every opportunity with skepticism. It gives you a clearer head and reduces potentially dangerous levels of FOMO (fear of missing out). FOMO can drive valuations of stocks to scary levels and it rarely ends well, as retail buyers like you and me buy the hype on a company while bigger players exit their positions.
Smaller growth-oriented companies can often have new, exciting technology that captures the imagination of the market, but smart investors, retail or otherwise, always look for one key milestone before buying in: validation. Without proof that a company is successfully penetrating their market, you’re buying the idea instead of the reality.
When I first looked at Tracesafe in the autumn of 2020, I was impressed by the technology they were bringing to market with an experienced management team. But I didn’t invest my hard-earned money because I needed to see real partnerships with big-market companies. Cutting edge technology, for all its impressiveness, isn’t worth much to a company without the means to monetize it. If you’re buying the idea, you’re making a leap of faith, and that is a little too close to gambling for me.
So much has happened since then that the leap of faith has become an open door to walk through. Validation is here.
But before we get to all that, let’s set the foundation, because none of this would have been possible without the management team, which is one of the most impressive parts to the story. The C.E.O., Dr. Dennis Kwan, and The C.T.O. Suresh Singamsetty, have been developing technology companies in the wearables space for years. Dr. Kwan co-founding Martian Watches, the first ever voice-enabled smartwatch. He was also V.P. of a Bluetooth company that was acquired for $160 million and he personally owns more than ten patents in wireless/bluetooth technologies. Mr. Singamsetty, the software expert, was with Dr. Kwan at Martian Watches. He owns more than 20 patents himself. The third member of the team, Gord Zeilstra, is another massive successful industry veteran. His specialty is driving companies’ global sales footprint. His success in the building of Monster.com and S.A.P. into global brands is an exciting indicator of where TraceSafe is headed.
So what about validation? Let’s begin with its partnership with Tritan Software. You probably haven’t heard of them, but I have no doubt you have heard of Carnival Cruises, Norwegian Cruise Lines, and Royal Caribbean. Tritan is the health and safety software provider for 95% of the entire global cruise line industry. I’ll put that in word form to give it the attention it deserves: NINETY FIVE PERCENT of the global cruise line industry.
Tritan is responsible for collecting, storing and securing the privacy of health information for all passengers, in addition to quality and incident management and a host of other software solutions. The CDC (Centre for Disease Control and Prevention) will most certainly have compliance requirements for resumption of sailing operations and Tritan knows this, which is why they are acting now, and acting swiftly. (Countless other companies approached Tritan, but they chose the experience and superior security of TraceSafe). The partnership was only recently announced and it remains to be seen how entwined the two companies will become, but contact tracing is only the tip of the iceberg (sorry, not the best cruise line analogy). For a clearer picture of the entire iceberg, we can look to Walt Disney’s iconic theme parks.
It is no secret that Disney theme parks have always placed a premium focus on customer experience, and one of the most effective ways they achieve this is through the “Magic Band”, which is essentially a wearable device that customers use to enter the park, unlock their hotel rooms, and buy food and merchandise. A one stop shop on your wrist.
This is where the cruise industry is headed. With a wearable on your wrist, you can enjoy all the same conveniences as the Magic Band combined with a contact tracing and safety monitoring device, all in one device.
So, that’s it? The cruise lines?
Even if it were the only partnership in the pipeline, it may have been enough to turn TraceSafe into a major global player, but it is just one of many projects, both ongoing and in the future. But even greater validation was announced just today (making me do some quick edits to this story)
TraceSafe, just today, announced a potentially game-changing purchase order. The agreement is to supply a global Tier 1 semiconductor manufacturer with 60,000 wearable units to be used across their enterprise. Professional services network Deloitte is managing the implementation of TraceSafe’s “next generation” of wearable products, which can be processed and paired within seconds, compared to about 3 minutes per device of other companies in the industry.
To give you an idea of the magnitude of this agreement, Dr. Kwan is quoted “This is one of the largest deployments of its kind anywhere in the world and we are very proud to be working with technology innovators to deliver a product so important in enhancing the health and safety of their workforce.”
I will forgive you if you stop reading now. The above agreement, combined with the cruise line partnership, is honestly enough for me and for many investors, but for those who stick around, the story actually gets considerably better.
The total wearable market is projected to reach $60 billion, and a large part of this will focus on corporate safety. In this way, Tracesafe has a bit of an advantage, as the company has a presence in Southeast Asia. You will remember that long before we realized the impact of the pandemic, several Asian countries were already scrambling to deal with the first wave. Since that time, we have dealt with each wave several months behind Southeast Asian countries. This time lapse has given TraceSafe a window into near-future conditions in the Western world. The best example of this is in Singapore, where they are closer to emerging from lockdown than we are in North America. Singapore has become the proving ground for TraceSafe technology., and it has gone perfectly. TraceSafe is being worn on construction sites for Boustead, a massive Singaporean construction company. This partnership has not only led to improvements in safety and security at Boustead, but it has also won TraceSafe the Singaporean National Innovation Award.
Closer to home, TraseSafe partnered with The World Junior Hockey Championships in Vancouver, Canada in December. The tournament was essentially a bubble-event that was completed safely using TraceSafe technology. T.T.G, the sponsorship firm that organized the event (and, incidentally, was instrumental in bringing The Winter Olympics to Vancouver in 2010) was impressed. So was Telus, the tournament sponsor. The future is very bright in venue tracing, with fans itching to return but needing a safe and proven way to do it.
There remains one incredibly large catalyst for growth, and some may find it the most interesting of all, but before we get to that (cough, Airbeam, cough), let’s quickly dispel any lingering doubts you may have:
Aren’t those wrist bands uncomfortable and a nuisance?
This is another part of the reason Tritan and others have chosen TraceSafe. Recall that two of the management team are pioneers of the wearable space with over 30 patents between them. The TraceSafe product has a battery that long outlasts any other in the industry and it is also incredibly lightweight and unobtrusive. Added to this is the
extended product line, with tags and credit-card style devices.
Discounting everything else in the pipeline, is anybody seriously going to get back on a cruise ship after all that has happened? Will the return to cruise lines be slow?
The high amount of bookings for the second half of 2021 says “no”, and so do experts in the field, who state that cruise line demand is higher than most other industry segments. Once people are vaccinated, the industry will return in a big way. Tritan understands this; hence the quick action.
But what about privacy? Isn’t this just another way for companies or governments to spy on us?
I honestly wondered about this because it seemed an obvious question, but the answer makes complete sense. If the TraceSafe software were downloaded onto your phone, perhaps there would be more skepticism on my part. We all value privacy and bristle when it is infringed upon. But these devices are only work-site specific, meaning that the wearables (and software embedded in them) are separate from your personal devices and they do not function once you leave the site. They only ensure health and safety through workplace tracking.
Aren’t margins higher on software than hardware? Will this make enough profit?
The answers to these questions vary, but they all begin with “yes”. Margins are indeed higher on software, and TraceSafe in fact is currently selling 50/50 between hardware and software (cloud computing), with a focus on moving to 20/80 in the coming months. The cloud-based real-time monitoring system does not, in fact, need an internet connection (which I’d say is important when you’re out at sea) as it is a bluetooth device. No user information is stored on the device and it has medical-grade privacy/security (remember the company’s origins). The administration functions are user-friendly.
What about the revenues?
Whatever exciting news you may hear about a company, it is always more reassuring to see actual revenues pouring in, even so soon after developing a contact tracing solution. TraceSafe could be forgiven for only being a quarter or two away from meaningful revenues, but luckily for investors, this isn’t the case. Based on video interviews in January, the company expects to continue their 100%-200% year over year growth, which puts them somewhere between a projection of $20-$32 million for 2021. Although it should be noted that I’m extrapolating these numbers by following growth patterns from previous quarters, this DOES NOT INCLUDE ANY NEW PARTNERSHIPS, INCLUDING THE AGREEMENT ANNOUNCED TODAY! (Oops, sorry. I seem to have left caps lock on there!).
And then there is the share float. Fully diluted, after all outstanding shares incentive-based options, the total share count will be under 70 million. This is a very small float, which appeals to most investors, as a company in a growth phase will have fewer obstacles to share price growth.
What about data? Data monetization is big business.
TraceSafe will have the ability to monetize data from their cloud-based software at some point in this process, although that shouldn’t be confused with personal data, which would never be shared, obviously. But corporations looking for trends in safety and efficiency would most definitely benefit from the analysis of general workforce data.
What else am I missing?
This is a bonus for the company that cannot be overstated. Airbeam. Ever heard of it? Before you read the bonus paragraph below, note that TraceSafe has invested into Airbeam and owns an impressive 9.9 million shares. Ok, go ahead and read about Airbeam now (Thanks to Stock Fam discord user “Aberdenov” for the assistance)
The 5G revolution is upon us. This revolution will be in the tens of TRILLIONS of dollars. Airbeam will be a player in 5G critical infrastructure. Their 5G micro cell network utilizing AI/ML with EDGE computing on the 60Ghz band will be a catalyst for smart cities enabling such things as autonomous vehicles.
Airbeam will also be deploying wireless cameras with unlimited storage and smart displays for advertising. The company is led by former executive and head of research and development at Qualcomm, Dr Karim Arabi, and along with Stockwell Day and his political connections, the future looks bright for the company. Airbeam's last private raise was back in 2019 with a valuation of 97 million. Since then they have gained traction with pilot projects in America, Qatar and the Philippines. An IPO is expected sometime in 2021 with a far higher valuation.
TraceSafe has openly talked about increasing shareholder value after the Airbeam IPO, including a potential dividend, which is unheard of for a growth tech company.
So you see how skepticism can lead to the DD that you need to uncover a company like TraceSafe. It has the management team, tech cutting-edge technology, the validation, the contracts, the blue-sky opportunity of an industry that will be a part of our lives, and an incredible piece of foresight to buy in early to a very hotly anticipated IPO.
Full updated report: https://mailchi.mp/tradersnewssource/new-repo...-650592?e=[UNIQID]
