IBeacons and inside arrangements in the iStores! Motley Fools Rule Breakers Stock Revealed!

By | August 28, 2014

Are you ready for the big profits as Apple takes over ecommerce with their next version of iPhone?

Well, I must tell you that every teaser pitch calls Apples name even when Apple has nothing to do with the stock they are touting. And this is no different as Motley Fools Rule Breakers brag about Apple’s IBeacons, on their way to sell you their Rule Breakers newsletter.

IBeacons by the way is an Apple patented technology (insider location mapping) that helps advertisers locate your precise location to target ads, for instance you are with an iBeacon technology enabled phone inside a store and browsing through the racks. The relevant advertisers could ping your phone with discount coupons.

Here’s how the Fool ad puts it:

And it’s now aiming a brilliant new consumer technology straight at a segment of the market that Goldman Sachs predicts will more than triple in size by 2018.
Incredibly, no one even saw it coming.

It’s all about how iBeacon could connect with and share information about your exact location with your phone, using low-energy Bluetooth. And how it went unnoticed because it wasn’t announced with a great pomp and show as was with their release of iPhone, except for a few Apple bloggers discussing the iBeacons in the weeks that followed.

Apart from the Motley Fool intellects of course – there is  a good description of iBeacons in case if you are interested.

Will the technology be ground breaking as the system provides a better link between the prospective customers and the advertisers, and possibly get closer to a practical phone commerce well, that’s a big question? And you need answers for it right.

But before that some more quotes from their ad;

You see, iBeacons are nothing more than a location signal. They simply determine where your device is inside the store.
When it comes to the integrated shopping experience… all the “events” that make a seamless digital-to-physical ‘iStores’ interaction come to life…
IBeacon technology doesn’t make any of those events happen.
The connected app on your phone does.
Without the app that makes everything work – in your phone and in the cloud – none of this is possible.

I will try to dive in and come up with my take on it, almost certainly the Foolies are not recommending Apple (AAPL) centered on this technology nor its ancillaries but they say this company provides the “app backbone” for the iBeacon service. Well, they have touted NXP Semiconductor for the promise NFC offers. This is a little different but it points in the same direction (finding a way to interact with consumers phones).

Some more quotes from the thinly obfuscated ad.

Will this company be the next Microsoft? Impossible to say.
After all, few companies in history have delivered the returns that Microsoft did through the 1980s and 90s (more than 60,000 %!).
But it is following a very similar strategy… albeit with one important, and profitable, difference: monthly recurring fees.

So the hints clearly point towards Salesforce.com (CRM). The Gardner brothers have repeatedly touted this stock for a couple of years now as their Cloud Computing pick. And it has done pretty well on the bourses too.

Salesforce.com (CRM) by the way is a highly overvalued growth stock they haven’t had profit for a couple of years. In spite of this it trades around 90 times its forecasted earnings; as it continues intense revenue growth rate. Investors rightly disregard the dilution of its stock, by way of awards to its employees.

Here’s an excellent write up on iBeacons and what Salesforce.com (CRM) could perhaps do to engage a customer by knowing his exact proximity. I am of the opinion that it has strong prospects and suggest a BUY.

Will the the technology behind it double your investment in Salesforce.com CRM, that trades around $ 58, it’s not my money it’s yours what do you think?

If you have any of your own musings on the stock the Foolies are touting do share them with our readers in the little comment box below.

Disclosure: I don’t have any positions in any stocks mentioned herein, and no plans to initiate any in the near future as well.

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2 thoughts on “IBeacons and inside arrangements in the iStores! Motley Fools Rule Breakers Stock Revealed!

  1. David Cutler

    Trust is everything. Thank you for earning it. Have you looked deeper into the IOT market at Mobile Beacons?
    Do you believe they are the technology with the most frictionless opportunities? There are several valid hardware manufacturers.
    I hear the most positive reviews of http://www.kontakt.io … Software is also key, have you assessed PTC?
    You mention Sierra Wireless … More on this please. It is actually a fun market!



    1. Anum

      Thanks for letting me know the review comments widget wasn’t working on my BLOG, even though it was for a short period. It has been corrected now.
      I haven’t yet peered deeper into the IOT arena at the same time I believe Beacons are indeed the game changers from a long term investment perspective.
      I will definitely try to do more research and analysis on Sierra Wireless and kontakt.io in my future write-ups.


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