Rally On, Traders!

Ever get the feeling the Internet is getting crowded? Too many phones, credit card readers, tablets, routers, streaming TV gizmos, home voice-activated assistants and old-fashioned computers jockeying for a space in the network . . . and that's not even counting the smart refrigerators, smart cameras, smart drones, smart meters and yes, the smart cars that need constant network connections to avoid killing a lot of people on the road.
 
The consultants at McKinsey see an extra 3 BILLION devices a year joining the Internet Of Things in order to ramp up to a total of 30 BILLION gadgets talking to each other by 2020 . . . which is at best only 15 months away.
 
But what do all those gadgets SAY to each other that makes this a Goldman Sachs style mega trend with the power to make the big bank's elite clients even richer? That's artificial intelligence. I've looked and GBT Technologies (OTCMKTS: GTCH) may have the most compelling answer out there right now.
 
What's remarkable is that GTCH isn't a giant or a household name. They aren't IBM or Apple or Microsoft. They're a tiny company, $1 a share right now and looking extremely oversold at that price:
 
But little GTCH has a trump card the giants can’t match. (Although maybe they covet it.) As of a few months ago, they’ve got a patent on a key piece of the Internet Of Things. Their chief technology officer filed the paperwork and GTCH has the sole exclusive license.

Do the giants need to go to this obscure little company to connect those billions of gadgets? Could very well be! Because this technology can plug literally ANYTHING and EVERYTHING to the network!
( VIDEO)
 
Here’s the science. As McKinsey points out, to attach a “thing” to the Internet, you need at a minimum a microcontroller (to make it “smart”), a sensor (so it can receive data), memory to retain programming and at least one chip that lets it communicate back to the network.
 
GTCH's patent is for an adhesive patch that contains all the chips required to signal its location from anywhere on the planet. It’s got its own one-year onboard power supply and enough memory to track its own movements. From where I stand, that qualifies as getting the patch onto the global Internet . . . and if the patch is online, whatever it’s attached to necessarily follows.
 
The patent applies in the United States and Europe. If anyone in Silicon Valley wants to use this technique to get something online, I’m sure GTCH is ready to hand them fat licensing contracts and rake in the royalties.
 
Sure, I get it. Next year’s refrigerator or smart car will be built with the chips it needs to show up on the network. But what about every other thing that’s already on the ground . . . and doesn’t have the chips?
 
If you want to get anything from a classic car to fine art to existing store inventory to collectibles online, you’ll need to attach the communications interface, perhaps by, I don’t know, a little sticker that carries the signal. That’s the GTCH patch.
 
And there’s a lot of stuff that will never be able to carry its own native chips. Think of soft stuff like clothes. Think of food, every perfect apple at Amazon’s Whole Foods waiting to be scanned into a drone’s cargo hold and sent to the right house.
 
All of these things have value. That's why GTCH is encoding crypto currency into the system so each patch communicates a unique signature like a bitcoin. You can't copy it or change the signal any more than you can turn a chihuahua into a greyhound. And that's the first application . . . .
 
Think of your beloved pets. That’s the prototype application GTCH has been working on to prove the power of its technology. Put the patch on your dog’s collar and it will stay in touch with your phone for a year, beaming back Fido or Rover’s location anywhere on earth.
 
Even where the traditional Internet cuts out, the patch stays online. That’s critical. It’s also something those next-generation refrigerators and especially the cars are going to need to match in their own systems . . . and if they can’t, again, their manufacturers need to come to GTCH begging for a little help.
 
Imagine the horror of a smart car going out of network range. If a self-driving vehicle loses its connection when you’re racing down a mountain highway, there’s a good chance you’re going over that cliff. The car can’t call for help. Even the global positioning system (GPS) can get glitchy if the satellite maps don’t match conditions on the ground.
 
So if you can’t get a cell connection on that mountain road, what’s going to happen in a few years when your expensive new smart car with no steering wheel or brake drops off Internet 1.0? Unless you’re on a next-generation network like what GTCH has developed, you’re stuck . . . or worse. Slap a single patch on the car or build it in, you’re on the grid, no matter what.
 
GTCH wants to be a winner. They’ve got a new CEO and big plans for how to monetize their technology the fastest, most effective way. They’re not content to just sit still and get bought for their proprietary system or even license it out to the highest bidder.
 
This is one of those pioneering little companies that wants to change the world. Like Apple. Like Amazon.  They started at the ground floor. Unlike billion-dollar “unicorns” like Uber, the most recent funding round was a modest $2 million. It’s enough to fund R&D and maybe bolt on a few little products or gadgets that translate well to the GTCH network.
 
I’ve seen an analyst set a $4.84 target on GTCH for the immediate future. That’s triple-digit upside right there. And it’s just the next step in what could be a LONG planet-wide journey.
 
Seeing inventory “shrinkage” at the store? Tag the merchandise and track the shoplifters home. Want to make sure you won’t get lost hiking? Carry the chip in case your phone fizzles or breaks. Each patch is $40. Multiply by the entire world.
 
That’s a factor in that $4.84 analyst target up there. It’s barely the next phase in what could easily become a ‘90s-style ramp to glory. The first Internet gave computers the power to talk to each other. The second one is an order of magnitude bigger: objects are learning to talk now too . . . and GTCH has a lock on the system.
 
Right now we’re in the very early innings. The pet patches have already racked up $60,000 in sales after only two months on the market, so it’s clear that even the “proof of concept” product has commercial legs. Even if GTCH were just about pet tracking, there’d probably be a compelling investment story there. But this is a whole lot more. It’s clothes. Food. As the company itself says, it’s your car, your bike, your purse, your puppy, your priceless painting. Slap a patch on it, it will never get lost. If it gets stolen, you catch the crook.
 
That’s going to disrupt everyday life. And tiny little GTCH will make it happen. They're working on robotics. Artificial Intelligence. Whatever it takes to make that massive network smarter and more USEFUL, they're in that game.
 
Forget the hypotheticals. GTCH has the network ("Internet") and a plan for how smarter "things" can actually make modern life better. Right now the stock is in a rare oversold phase . . . but who knows how long that lasts?

Happy, Happy, Happy Trading!