This year has proven to be the year of important initial public offerings and many more are in the pipeline. Another highly interesting IPO that is in the works is that of American delivery startup Postmates. The company is expected to go public later this year.
Considering this fact, many more big-ticket tech IPOs are going to take place in 2019. It is interesting to see the merits of investing in Postmates and other delivery technology stocks. So, it is worthwhile to take a better look at companies cornering a number of market segments in North America.
A Market Getting Warmed Up
This segment of the market is still relatively new compared to other parts of the “tech world.” Companies like DoorDash, UberEats (UBER), GrubHub (GRUB) and others have joined the ranks of other unicorn startups, with a valuation of $1.85 billion. However, the future of the delivery tech industry is bright and according to estimates by some experts. It is believed that it could one day be valued at $100 billion.
For many, the challenge is to fight against established rivals and try to increase market share steadily, in order to become one of the bigger players in the industry. So how can companies like Postmates (soon to IPO) and others compete? Do something that isn’t already being done!
New Services Will Create Opportunities…cough cough…Cannabis
Although, it can be argued that there is not much that separates one delivery app from another, it needs to be mentioned that certain companies have managed to offer particular services that could help in gaining a competitive edge. For instance, two of the fastest growing industries right now in the United States are on-demand technology and cannabis. These two industries are at the epicenter of growth and investors aren’t being shy about their appetite for companies in these arenas. But one company, in particular, has developed a unique business model that services both of these massive growth industries.
Special Report: Two Massive Growth Industries, One Choice for Investors
Driven Deliveries (OTC: DRVD) is quickly gaining steam in legal US markets as the new delivery option for customers is resulting in increased revenue and transactions for dispensaries. According to Statista , the United States legal cannabis market is projected to be valued at $24.1 billion by 2025. And a recently introduced bill to Congress could catapult the industry to those record levels even quicker than originally expected.
A Focus On Expansion
Driven Deliveries (OTC: DRVD) announced in mid-2019 that it has successfully launched operations in Nevada with Shango Marijuana Dispensary, one of the most successful stores in the State. The new endeavor provides Driven with a monumental opportunity to serve Las Vegas, the largest market in the State with massive tourism, and a central launch point for additional markets throughout Nevada.
Why Nevada? The Nevada cannabis market has been growing at a rapid pace. Nevada retailers sold approximately $530 million worth of medical and recreational cannabis in 2018*. The $44.1 million in monthly revenue represents a 35% increase when compared to monthly revenue in 2017.
Driven Deliveries (OTC: DRVD) may have also recently secured $2.5 Million in annual revenue and could significantly expand its product offerings! How? The company has signed a Letter of Intent to acquire cannabis retailer, Mountain High Recreation (MHR). Read More: Driven Deliveries Inc. (DRVD) Signs LOI to Acquire Cannabis Retailer, Mountain High Recreation
New Trends Signal “More Than Just Food Delivery”
As we’ve already seen, there’s far more than just food that these companies are focusing on. Just as with Driven Deliveries (DRVD), Post Mates is going beyond things like bringing you your Double Decker Burger. But instead of things like cannabis, Postmates also delivers groceries and alcohol from nearby stores to its customers.
In addition to that, it has inked some partnership deals that have brought down the cost of delivery as well. If it continues in the same vein and manages to innovate, then it could make it an attractive proposition for investors. The company has increased its presence considerably over the year and currently serves as many as 3500 cities spread across 50 states in the United States and in 2018; Postmates generated revenues to the tune of $400 million.
Talking about its key partnerships, it is important to point out that back in March, the company teamed up with payments company Square Inc (SQ) that will allow it to do deliveries for small businesses. Due to this deal, Square users will be able to use the Postmates delivery couriers and in addition to that Postmates will also be integrated into the point of sale systems at different merchants. This is a significant deal since it opens up another large customer base for Postmates. Postmates charges a fee to Sellers on Square.
It’s All About Growth
Whether it’s becoming a behemoth in grocery-getting or focusing on becoming the biggest US-based cannabis delivery service, on-demand delivery technology could be presenting bigger opportunities for investors. Each new industry trend provides tremendous growth as company valuations continue to soar into the multi-billions. With the next wave of expansion expected to take place via new IPO’s and niche business models, this could be another right place/right time in tech.
Biotech Stocks To Watch In June: Cara Therapeutics (CARA) & Intellia Therapeutics (NTLA)
Among biotech companies, the competition between Cara Therapeutics Inc (CARA) and Intellia Therapeutics Inc (NTLA) has been an intriguing one. The two companies had been on the same level as far as the market cap goes during most of the year so far.
But Cara has now pulled ahead by as much as $150 million following positive data from its lead product candidate. That being said, it is also important to keep in mind that if an investor is looking at a long term investment, then the disparity in market cap between the two companies is a minor. Here’s a look at the pros and cons of Cara and Intellia.
Cara Therapeutics (CARA)
Cara Therapeutics is currently on the rise. Its lead product candidate Korsuva injection delivered highly encouraging results in its Phase 3 trial. It’s now believed that it would not be long before Cara has its first product on the market.
It is meant for the treatment of moderate-to-severe chronic kidney disease-associated pruritus. According to reports, the results were great. Another late-stage test is going to be conducted soon. The results could be announced by the end of this year. If Korsuve is approved, then it will be marketed by Fresenius Medical Care and Vifor Pharma Group.
Cara has entered joint ventures with those companies to market the product in the United States, Japan, and South Korea. An oral version of Korsuva is also in the pipeline and could prove to be another important development.
Intellia Therapeutics (NTLA)
Intellia Therapeutics (INTA) is involved in creating CRISPR gene editing therapies. It is a segment that has a lot of promise in the future. Even though the company is some years away from having anything on the market, the promise of gene editing therapy is exciting. So much so that Intellia has already found partners in big-ticket firms like Regeneron and Novartis.
Intellia is expected to file for FDA approval for the clinical study into its lead product NLTA-2001 in 2020. It is meant for the treatment of transthyretin amyloidosis, an uncommon genetic disease. Studies into the products have proven to be promising so far. The company is also working on a product to treat myeloid leukemia.
Now when it comes to choosing between Cara and Intellia, experts believe that the former could a better company. It’s already on the verge of having an approved product on the market. Intellia, on the other hand, is likely to be some years away from winning approval.
4 Security Penny Stocks To Watch
As Threats Arise, Security Stocks Take Center Stage In 2019
With the Federal Reserve’s meeting coming, the general market is bracing for anything. Meanwhile, penny stocks are continuing to climb at absurd rates. Trading penny stocks as of late has brought many investors fruitful profits and they look to continue this trend. Here are some security penny stocks to watch for the remainder of June 2019:
Security Penny Stock #1
Liberty Defense Holdings (SCAN.V)
Market Cap: $46.404M
Liberty Defense Holdings Ltd. (SCAN.V) is a security company looking to take the industry into the next century. Liberty’s HEXWAVE product is a 3-dimensional scanning device that can detect weapons and threats of any kind. The product can do this both with speed and discretion ensuring privacy for citizens.
Liberty signed a Memorandum of Understanding with the soccer team FC Bayern München to beta test HEXWAVE in their arena. They join an ever-growing list of places that have signed MOU’s to beta test Liberty’s product. This MOU expands its ability to comply with and test the market requirements for their product internationally.
“The reception to our HEXWAVE product has been fantastic and we are excited about working alongside FC Bayern Munich, a team that is a household name in both Europe and North America, […] Our ability to deploy in both indoor and outdoor settings, with covert and overt applications, sets us apart and has also been driving increasing interest from the market.”Bill Riker, CEO of Liberty
Security Penny Stock #2
Magal Security Systems (MAGS)
Market Cap: $101.371M
Magal Security Systems Ltd. (MAGS) provides security solutions both online and physical. Some services provided include identifying potential security problems, integrating new systems, and custom designs for any type of security needs.
Recently, Magal received a $5.5 million contract for its advanced perimeter intrusion detection system. The system prevents people from illegally crossing border fences and walls.
Dror Sharon, CEO of Magal, stated, “Magal is a world leader in perimeter intrusion technologies. Our growing wins of orders such as this – providing sensors for active international borders, is due to the decades of experience that we have in providing systems that have more than proven themselves in-the-field.”
Security Penny Stock #3
Rekor Systems (REKR)
Market Cap: $27.502M
Rekor Systems Inc. (REKR) is a company that has developed surveillance technology to enhance public safety, banking, and traffic management. Primarily, the company takes their advanced software, which utilizes machine learning and upgrades IP cameras to the next level. This reduces the cost when collecting highway tolls and helps manage traffic congestion.
Throughout June, Rekor Systems has been gaining recognition and application across the US. On June 3rd Rekor obtained a contract to start deploying its Mobile LBR-2 vehicle recognition systems. After this deployment on the 3rd, the LPR-2 system North Carolina law enforcement placed an order. On June 12th, Colorado highway authorities chose Rekor’s cloud system called NUMERUS to read enhance their license plate reading.
Security Penny Stock #4
BIO-key International (BKYI)
Market Cap: $18.03M
BIO-key International Inc. (BKYI) is a security technologies company that is pushing past the limits of fingerprint scanning. BIO-key provides a plethora of finger scanning products that provide security for your computer, hard drive, and the government. They have a partnership with Microsoft to develop biometric sign-in for Windows 10.
The company recently announced that a foreign defense ministry ordered more BIO-key deployment for secure access to Microsoft applications.
“We were delighted that such a capable and prestigious technology team determined that BIO-key met their security and scalability requirements and have now made follow-on investments to grow their user base. Defense Ministries are constant targets of cyber-attacks, and we are glad to help them step up authentication to the highest assurance with NIST-verified accuracy and FIPS compliance.”Jim Sullivan, SVP of BIO
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