The only reliable thing about a weather forecast is that it’s 100% unreliable.
Backed by a $7 million investment from SoftBank, a team of former military officers from Harvard and MIT is turning weather forecasting on its end with a first of its kind “weather-tech” company.
It’s called ClimaCell, and the company claims its forecasting service is 60% more accurate than traditional methods. (They’re talking about you, Al Roker!)
In addition, it’s able to predict natural disasters 36 hours before they occur.
ClimaCell stands to earn billions in profits providing weather-related information to major industries — aviation, financial services, construction, professional sports, etc.
And as you’ll learn in a moment, this creates a major profit opportunity for you, too…
Same Weather, Different Forecast
With traditional weather forecasting, thousands of scientists and radars from around the world feed information into supercomputers.
The output? Well, if you’ve ever planned your day around a weather forecast, you know that it’s just a roll of the dice.
ClimaCell is different. Its solution is elegant and ingenious:
Essentially, it taps into millions of local signals from cell phones and other wireless devices…
And it uses the quality of these signals to determine local weather conditions!
In some ways, it’s like Waze, the navigation app — but instead of forecasting traffic, it forecasts weather.
And for ClimaCell’s early adopters, it’s already paying dividends…
Economic + Social Profits
Airlines are using ClimaCell’s forecasts to better manage schedules during weather events like snowstorms, which traditionally wreak havoc on the industry.
Cities across Asia, South America, Africa, and Europe are using it to predict urban floods in advance to keep millions of lives out of harm’s way.
But the opportunities for ClimaCell extend far beyond airlines and public safety.
- Utilities can use it to predict outages and optimize power generation.
- Construction companies can use it to protect worksites and personnel.
- Sports and entertainment venues can use it to evacuate crowds before tornadoes or thunderstorms, and to manage rain delays.
- And thanks to its compatibility with Amazon (AMZN) Alexa devices, everyday Americans can use it to ditch their reliance on the local weatherman.
These opportunities are likely to create massive profits for ClimaCell…
And if you know where to look, they could create massive profits for you, too.
The Next Wave of Smartphone Profits
The smartphone boom is dying.
Shipments of handsets are down significantly worldwide.
But as investors, smartphone handsets aren’t where we should be looking to earn money…
We’re more than ten years into this boom and the obvious profit opportunities are already gone. Now it’s time to look at “first and second derivative” opportunities.
In other words, it’s time to look at opportunities created by the proliferation of all these handsets…
Sensors in Our Pockets
The $1 trillion App Economy is a classic example of a first derivative opportunity…
Without smartphones, there would be no apps — including ones that we consider vital to everyday life nowadays, like Venmo and Uber.
ClimaCell and Waze represent the next derivative: products that leverage the sensors that we all carry around in our smartphones. These sensors are able to generate a complete and accurate picture of any environment. And that data can be leveraged infinitely to make better decisions.
The thing is, these sensors are computer chips — extraordinarily powerful computer chips.
And this is where we believe the next wave of profits will come from:
From the companies building these chips!
Profiting from the Sensor Revolution
For example, STMicroelectronics N.V. (STM) represents a low-risk, “no-brainer” option.
Based in Geneva, Switzerland, STM boasts over 17,750 patents and applications for chip designs. And with shares trading for less than $20, we can own a share of all those patents at a low entry point.
Unfortunately, STMicroelectronics is already a big, established company. It’s already worth $16 billion. In other words, the lion’s share of the profits from STM have already been made.
That’s why Wayne and I are looking elsewhere…
We’re actively scouring the landscape for the best privately-held chip startups…
Early-stage startups that are building and patenting the next generation of computer chips and sensors.
As I write these words, our research team is evaluating a number of opportunities in this sector…
And we’re aiming to share these opportunities with you soon.
So, stay tuned!