What do a small manufacturing company, a major Internet
powerhouse and a West-Coast robotics firm have in common?
According to Andy Obermueller, they're all sitting on some of
the biggest ground-breaking technologies of the next 10
As Chief Investment Strategist for
, Andy's job at StreetAuthority is to hunt down companies with
the potential to produce the next life-changing investing idea.
By finding and investing in these stocks before they become the
"next big thing," Andy (and his subscribers) has been able to
lock in enormous gains from some of the market's biggest
Take one of Andy's most recent "game-changers" --
Gogo Inc. (Nasdaq:
, for example.
Andy originally brought the $2 billion tech stock to his
subscribers' attention in
August of this year
. At the time, Andy thought the company's in-flight Internet
connectivity technology would take the airline industry by
Turns out he was right... Just two months after his
recommendation, Gogo shocked the market by reporting third
quarter revenue of $85.4 million -- smashing analyst estimates of
The announcement sent Gogo on a triple-digit rally...
But as excited as we are about Gogo and the future of
in-flight entertainment, Andy thinks there's a small group of
stocks that will play an even bigger role in the technological
revolution that's sure to engulf the next 10 years... And if he's
right about any of them, early investors stand to make a
Simply put, in his most recent essay -- "
The 5 Unstoppable Game-Changers of the Next
" -- Andy identified five investing trends (and the companies
behind them) that could revolutionize the way we live our
'The Second Industrial Revolution'
Take one of Andy's "game-changing" trends, an anomaly we refer to
around the office as "The Second Industrial Revolution."
In short, "The Second Industrial Revolution" refers to the
emergence of a "science fiction" like machine that allows people
to create literally whatever object they want -- almost entirely
out of thin air.
While it might sound like something out of a Star-Trek movie,
this feat is entirely possible thanks to a developing technology
called 3-D printing. Andy explains the logistics in his recent
Here's how it works...
All you do is pull up an image on your computer... and hit
Almost like magic, the 3-D printer creates a replica of
whatever you want. Whether it's a wrench, croquet mallet, or
guitar, the machine will create one that's accurate within a
tenth of a millimeter.
As it stands, many automobile and aerospace manufacturers
currently use 3D printing to generate prototypes for parts and
other pieces that may be used in the construction process.
But considering this technology is still in its infancy, think
Some experts predict that soon we'll be able to create working
firearms... customized prosthetic limbs... and even edible goods
like food simply by downloading an image onto a computer then
printing it using a 3D printer.
The secret is a highly specialized process called
stereolithography. In using this patented technique, 3D printers
can utilize computer programs to build three-dimensional objects
by attaching slivers of thin material together in a pre-designed
To be fair, this technology is nothing new -- people have been
using computers to create objects since the first 3D printer was
invented in 1984. However, due to their costs in the past, they
were so expensive you would only find them in research labs.
But that's starting to change... and quickly.
The Next Trillion Dollar Industry
As technology improves, companies working in the industry have
undergone a massive endeavor to make 3D printers an affordable
household good. Today you can buy a brand-new 3D printing kit for
as little as $299 on Amazon.com.
Those efforts have helped boost sales of 3D printers over
ten-fold in the past five years. According to recent figures, in
2007 there were only 66 3D printers sold in the U.S. By 2011,
that number reached 23,265 -- a 35,000% increase.
The rapid surge in popularity has led
to call 3D printing the next technology to "change the world..."
comparing it to developments like the steam engine and the
also commented, declaring that 3D printing could potentially
create "The Next Trillion Dollar Industry."
Andy agrees... In fact, he has been bullish on 3D printing
companies since he recommended
3D Systems (NYSE:
subscribers in January 2011. As he told his readers at the
[3-D Systems] is a serious player in 3D and exists outside
the entertainment realm, bringing this technology to
manufacturers looking to visualize their products. Its client
list reads like a Who's Who of top manufacturers, from Porsche,
Mercedes-Benz and Rover to Johnson Controls and Texas
As pioneers in the industry and creator of the first 3D
printer ever, 3D Systems has without a doubt been one of the
biggest beneficiaries from the surge of popularity in this space.
Since Andy made his recommendation nearly three years ago, the
stock has surged over 450%.
But 3D Systems is just one of the companies poised to benefit
from this booming trend. As it stands, there are a total of three
major publicly-traded companies operating in the 3D printing
industry -- and they're all seeing soaring profits.
Of the three companies listed above, Andy thinks 3D systems
have the most potential to outperform in the coming months. While
3D systems has first-mover advantage, Andy likes Stratasys for
its stronghold on the retail consumer market (Andy's full
write-up on both of these companies is available in his
Of course, with investing nothing is 100% certain. Like most
"game-changers" in their infancy, right now both of these
companies are trading at heavy valuations relative to earnings.
As of today's close, 3D systems was trading at a
price-to-earnings (P/E) ratio of 160. Stratasys is still
operating in the operating red, so it doesn't even have a P/E
But considering the potential of this technology, Andy thinks
that will change as 3D printing becomes a mainstream affair.
After all, the purpose of investing in game-changers is to get in
on the ground floor. If what Andy forecasts is true, then right
now investors have the chance to beat the crowd to what could be
one of the biggest manufacturing revolutions of the next