A New Leader In Autonomous Tech Emerges
Years ago I was rummaging through my basement, clearing space for a new workshop.
I’m pretty handy, and I like to keep busy in my free time fixing things around the house.
For the workshop I had in mind, I needed a lot of space. And that meant sifting through boxes of Blanco keepsakes, figuring out what to toss into the “junk” pile and what to toss in the “keeper” pile.
I’m proud of myself — the “keeper” pile was small and the “junk” pile much larger… but something in the keeper pile reminded me of an important opportunity I need to tell you about.
It all ties into the biggest revolution in tech. One that could mint new millionaires like when the personal computer took the world by storm back in the ’80s.
Getting Dirty at Autonomous Vehicles 2019
In that pile of “keepers” were my old, vintage Tonka trucks, namely the Caterpillar (NYSE: CAT)-inspired turbo-diesel dump truck and turbo-diesel front-end loader.
CAT is a definitive leader in heavy machinery. It’s only fitting Tonka used CAT’s equipment as the basis for their replicas.
Today, however, if Tonka decided to reboot its CAT-inspired line these toys would need a whole lot of computing power.
Unbeknownst to most folks, even those in the tech world — some of the most important innovations in autonomous vehicles are occurring in the dirty, dusty world of heavy machinery.
AVs in mining and construction represent the first of many new, actionable opportunities I discovered on my trip to the Motor City last week to attend the Autonomous Vehicles 2019 conference.
CAT has worked with various stakeholders ranging from miners like Rio Tinto to the Israel Aerospace Industries (IAI) to develop their line of autonomous equipment. Over roughly the past eight years they’ve carved out a new leadership role in the soon-to-be booming AV space.
It’s also our most immediate opportunity. CAT’s AVs are in operation all over the world as we speak, and mining groups are chomping at the bit to get their hands on the latest and greatest AVs from CAT.
What’s So Great About CAT AVs?
CAT’s innovations include new front-end loaders, drillers and excavators. These machines are fully automated and can be monitored either on site or remotely from an operation centers hundreds of miles away.
Given a set of tasks, CAT’s AVs can perform a host of operations safely and efficiently. These systems use advanced mapping and sensing equipment along with artificial intelligence to process vast amounts of data in the blink of an eye. This also eliminates many of the previously needed layout and staking tasks associated with mining and highway construction.
As a result, CAT’s AVs can increase operational efficiency by over 45% for new projects.
Additionally, all projects using this tech become profitable roughly six–nine months after initial investment in this new equipment.
Your Low-Hanging Fruit
Normally, we wouldn’t consider CAT as a worthy tech play. It’s a heck of defensive stock, but typically, we look for more explosive, high-growth plays in these pages.
Not to mention the company’s shares are also under pressure thanks to the trade war with China.
But that said, with CAT’s innovations in autonomous vehicles and with the market’s current choppy climate, now could be the perfect time to add a defensive-natured tech play or two in your portfolio.
Because even if trade war draws on into 2020, CAT’s innovative AV division is pumping out a fleet of new equipment and companies are buying up this inventory at an incredible rate.
With shares almost $30 off their 2019 high, a strong long-term outlook thanks to its AVs and a hefty 3.6% dividend yield, CAT is now the secret tech play that could offer steady income and flash gap-ups as it strikes new contracts and acquires new AV partners.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily