Published Research and Articles on the Disruptive Innovators Theme

Central bankers around the world are opening the stimulus flood gates, markets celebrate and all is good with the world… or is it?

As consumers continue to shift to digital shopping, a key stool in our Digital Lifestyle investing theme, we are not only seeing more companies embrace the direct to consumer (D2C) business model, but we are also seeing more digital shopping solutions for those companies come to market. Internet shopping platform company Shopify is doing just […]

We continue to see the market expansion for CBD products, some of which tie into our Cleaner Living investing theme while other hemp-related derivatives fall into our Disruptive Innovators theme. There is little question that a CBD infused ice cream from former hippies Ben & Jerry would be part of our Guilty Pleasure investing theme. Candidly, we […]

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As expected, US-China trade has once again taken center stage, and with prospects likey stalled in the short-term, it means the market is once again sitting on trade pins and needles. Meanwhile fresh data show the economy is slowing considerably compared to the March quarter, and odds are investors will start to question June quarter EPS expectations and the market’s current valuation. With President Trump dropping the hammer on Chinese telecom company Hauwei, we discuss the impact to the Thematic Leaders and Select List residents.

A record 13.3 gigawatts of new capacity from wind producers came online in 2012, which no so coincidentally coincided with an expiring tax credit program for that year. This year, 2019, the projection is for 12.7 gigawatts of new capacity to come online. Obviously, consumer demand for alternative energy, part of our Cleaner Living investment […]

As we have long said, thematic intersections can pave the way for pronounced transformation as two tailwinds change the existing landscape. As we continue to age and live longer, companies are examining new solutions to improve those aged lives. In the past, we’ve seen those take on a variety of forms, and now we are […]

News coming out of Bentonville, AR this week details a series of store enhancements and renovations to 500 Walmart stores in the coming years. As we read through the discount retailer’s plans, the “ding” buttons were going off in our heads as many of them directly touch upon our investment themes. At a reported total cost of $11 billion, these plans are set to have a major impact on both store operations and the customer experience of shoppers. Here is a quick rundown of what we learned.

Walmart is teaming with Alphabet Inc. to take the grocery fight via voice ordering to Amazon and its Whole Foods, Alexa combination. In a blog post, Walmart shared that starting this month, customers would be able to grocery shop through the Google Assistant by saying, “Hey, Google, talk to Walmart.” This seems like a positive […]

At the intersection of our Connected Society and Disruptive Innovators investing themes sits those companies that will turn the datafication of our lives into actionable information.

The tailwinds from the offshore wind power initiatives run deep into our Cleaner Living theme, obviously. This article also shows the impact it’s having on our Disruptive Innovators theme as well.

We are only starting to see commercial deployment of 5G mobile technology, but efforts are already underway for the next evolution of mobile connectivity. Here at Tematica, we’ve been saying there will be another “G” after 5G, much the way there was a 4G after 3G and 2G. With applications still being realized for 4G […]

The driver for the market so far this week has been retail and Boeing, and we tackle what’s going on with both. We’re adding a new Disruptive Innovator to the Select List and holding steady with Del Frisco shares following good earnings, but not a word on its strategic initiatives.

Some of the issues that electric vehicle owners and potential ones have had to wrap their heads around have included contending with the maximum distance their electric vehicle can travel on a full charge, the amount of time to fully charge the vehicle and where to charge it. Even as Tesla is ramping its fast […]

Between online and mobile ordering, order ahead and in-store pickup, and scan & buy shopping, technology continues to disrupt retail. One of those key disruptors has been Amazon but others, and especially so Walmart, have been vying to catch it. In the last year, Amazon has debuted one of its latest disruptors in its AmazonGo stores […]

Spinning out of Mobile World Congress 2019, an annual mobile event that tends to see a number of announcements each year, perhaps the biggest news on the 5G front is found in one of the smallest devices that you’ll probably never see. These strips could help solve the coverage and range issues associated with 5G […]

In this week’s issue, we dig into the latest shareholder letter from Warren Buffett, examine the growing number of dividend cuts and other factors make the year to date melt up in the stock market something of a head-scratcher. That best performance in 20+ years hinges on a successful trade deal with China, but there are other factors that we need to examine so we don’t fall prey to a “buy the rumor, sell the news” scenario. We recap the sharp move in Universal Display shares following its latest earnings report and touch on favorable news emanating from Mobile World Congress 2019 for Nokia.

As we enter Mobile World Congress 2019, arguably the mobile event of the year, 5G network and device launch details are coming into greater focus. Verizon is taking the early lead in the US staking out 5G to 30 cities in the US by the end of 2019. Of course, 30 cities is hardly national […]

We’ve often said that navel-gazing in one’s home geography and not looking outside those borders can lead to missing inflection as well as tipping points. That’s especially so with our Disruptive Innovators investing theme given there tend to be some preconceived notions as to where those adoption points are likely to be. Fairly often, there […]

The market catches a positive breather following Apple’s not as bad as it could have been December quarter earnings report. We still have several hundred reports to go, and the preponderance of companies are issuing weaker than expected guidance. As we navigate upcoming reports and puzzle what they mean for 2019 earnings expectation, the Fed will emerge from its latest monetary policy meeting today, and later this week we should learn how the latest round of US-China trade talks went. Verizon is bulls up on 5G, and that along with issues for China mobile company Huawei as well as bullish earnings report from Ericsson pave the way for a solid one from Disruptive Innovator Leader Nokia.

We are seeing yet another shift in consumer products at the intersection of our Clean Living and Disruptive Innovators investing themes wherein the world’s biggest consumer brands are looking to provide their products to consumers in refillable containers so as to reduce waste. This creates a tailwind behind those providing the containers and the refilling […]

As the Market Bounces Off Oversold Conditions, Is this the start of another bull run?

So far in 2019, we are seeing a reversal of the heavily oversold conditions from the end of 2018. Those stocks that were hit the hardest in 2018 are materially outperforming the broader market in 2019. The fundamentals, however, both domestically and internationally are not giving us reason to think that this bounce is the start of another major bull run. With all the uncertainty out there, despite the market’s recent “feel good” attitude, we expect to see rising volatility in the months to come as these problems are not going to be easily sorted out.

The December quarter earnings season is upon us, and those reports have started on a decidedly mixed front. We’ve gotten more data pointing to a slowing economy, and the government shutdown continues. As we wait for the pace of earnings reports to move into high gear, the second half of 2018 was home to a number of thematically inspired M&A, and odds are more will be had in 2018. We add back USAT shares to the Tematica Select List and review several of the Thematic Leaders.

We have another sign that transformation is underway at the pharmacy, which over the years has morphed from pharmacy only to a mix of pharmacy, personal care products, and convenience store. Yes, I’ve been known to pick up holiday decorations and even some pre-movie candy. There has been another set of pivots, including the launch […]

Artificial Intelligence, robotics, autonomous vehicles, smartphones, tablets, and cloud computing. These are the “sexy” Disruptive Innovators, Digital LIfestyle and Digitial Infrastructure theme gadgets that grab the headlines for the annual Consumer Electronics Show held each year in Las Vegas. What isn’t expected is the latest and greatest purchases we will make for Nana in 2019.

In the coming years, the demand for chip processing power within cars is going to be enormous — even before fully autonomous vehicles even become a mainstay.  Lane control systems, adaptive cruise control, crash detection systems all place demands on the digital infrastructure inside and outside of a car, not to mention the ability for passengers to stream movies, music and other media as they pass the time.

As the smartphone market matures, HTC’s efforts in artificial intelligence, augmented and virtual reality are bearing fruit initially in the healthcare sector, but that is just the beginning for these Disruptive Innovation applications.

With Volvo, Daimler, Tesla and others testing electric trucks, before too long the move to electric vehicles is set to move beyond the car market driving demand for a number of newer technologies and solutions.

New touch-integrated OLED screens could jumpstart 2019 iPhone demand with a thinner, lighter and cheaper alternative to OLED displays used in the iPhone X, iPhone XS, and XS Max.

An expansion of its telemedicine program with Walmart, T-Mobile and Philips to meet veteran needs, the Department of Veterans Affairs is one to watch for this aspect of our Digital Innovators investing theme, which has implications for two other investment themes.

Japan is embracing IoT and other disruptive technologies to address pain points associated with its aging population. These could be a harbinger of what’s to come here in the US and bodes well for several other of our investment themes.

We are starting to see artificial intelligence, augmented reality and other aspects of our Disruptive Innovators being adopted in retailers to increase their services in a bid to drive traffic and revenues.

We’ve closed the books on a painful November, and while progress on the US-China trade front is popping the stock market today a number of issues remain that will likely come into focus as the relief rally fades. We recap the Thanksgiving through Cyber Monday holiday shopping, a boon for our Digital Lifestyle investing theme and discuss what investors should be watching this week as we kick off the last month of the trading year.

Ever the disruptor, Amazon is testing its cashierless checkout technology in larger format stores compared to the footprint for Amazon Go. Implications about even if Amazon keeps the technology to itself.

Looking to jumpstart its business and brand, Harley-Davidson is joining the ranks of electric vehicles and attempting to tap into our Clean Living investing tailwind.

7-11 embraces the Disruptive Innovation that is Scan & Pay to reshape the retail experience

The power of disruptive technology leads to down dog taking down those trusty Levi 501s.

Our disruptive technology investing theme is pervading many aspects of the grocery industry from robotics to autonomous delivery vans, reinventing one of the oldest sectors of the economy.

Kroger eyeing Amazon as it implements robotics in its warehouses to improve its operations.

Qualcomm is partnering with Amazon to bring its Alexa digital assistant to more devices, challenging mutual foe Apple in the process.

By using virtual reality, Macy’s is not only protecting its furniture business but its greater sales conversions and fewer returns.

In a busy as well as volatile week, we continue to receive confirming data points for our investment themes and thematic holdings from a variety of sources including the September Retail Sales report as well as September quarter earnings reports and other events. This week we are scaling once again into our DFRG shares.

Divvy aims to address the pain point of affordable housing, but is it the right time in the business cycle for this disruptive business model ?

New technologies have the potential to either upend the existing playing field or bring about new value propositions that render past business models passe. One of those that is expected to usher in a wider array of connectivity with speeds that match existing cable broadband speeds is 5G. Often times, these new technologies take time, […]

We’ve said it before and odds are we will say it again – applications for our Disruptive Innovators can come from a number of areas, including ones that are less than obvious. Big Data and its use in the restaurant industry is such an example as those companies look to overcome flat traffic trends and […]

When most people talk about rising disposable incomes, the knee-jerk reaction tends to be one that involves China or India. While those are natural reactions and are key drivers for our Rise of the New Middle-class investing theme, we are seeing the same begin to unfold in Africa as auto companies invest for what they […]

As Tematica Investing subscribers know, we are big fans of Amazon and one of the key reasons is how it removes friction from a transaction. We are seeing others adopt aspects of our Disruptive Innovators to follow in those footsteps. More often than not the adoption of such new technologies, like Augmented Reality (AR), can […]

In Puerto Rico, we are seeing the phenomenon of Disruptive Innovation play out in the area of renewable energy as residents struggle to get back on their feet following Hurricane Maria. What was once a savings or clean energy advantage, solar power is almost becoming a necessity for safety and security.

Last week all eyes were on Apple and Fall 2018 new model iPhone launch and this week Amazon is taking the new product spotlight as it announces a number of new Echo products and others that include its digital assistant, Alexa. These products confirm that our view several years ago that voice would be the […]

There has been much talk this year about the rapid rise and fall of Bitcoin. We here at Tematica have long said the far more interesting disruptor is Blockchain, and as Bitcoin has fallen hard in recent weeks, we’ve seen a flurry of renewed news flow for blockchain, including a growing number of patent filings […]

If you’ve been in a checkout line – either one with a cashier or a self-checkout one – you’ve probably experienced the hassle of waiting in line, sometimes for what may seem like forever if coupons, checkbooks and the like are being fished for. One of the successful strategies employed by Amazon is its ability […]

We are on the cusp of seeing 5G network service being deployed, just not in the application that many of us would expect. That’s right, not the smartphone but rather for in-home wireless service and it’s from Verizon. Pretty interesting given that Verizon mostly stopped expanding FiOS fiber-to-the-home service in 2010 and since then has been […]

It’s rather easy to recognize the growing influence that gaming (and by that we mean video games) is having on our culture from entertainment, sports, and a few other vantage points. With networked and multi-player gaming, we are seeing gaming chip away at more traditional forms of content consumption, with certain titles giving way to […]

When even the owner of a gym is struggling the time for fitness, we see the market as ripe for a Disruptive Innovator. Peleton is the first major entrant into this space we see between Disruptive Innovator and the Digital Lifestyle in which those seeking fitness are able to squeeze a class into their ever […]

We have long said one of the dark sides of our Digital Lifestyle investing theme is a tailwind for our Safety & Security theme, and a new report makes the case for the not only the reverse, but it also invokes our Disruptive Innovators one as well. I’m talking about mobile payments. With debit and […]

We are nearing the commercial deployments of 5G, one of the next-gen technologies that fall under our Disruptive Innovators investing theme. By sharing its 5G essential patent licensing rates, Nokia is offering one of the firmest signals that 5G devices will soon be a reality. Initial shipments are expected to begin in 2019 and reach […]

There is are several factors pressuring margins at hospitals that are poised to accelerate the pace in hospital closures. This comes at a time, keeping with or Aging of the Population investing theme and Boomer Economy Index, that population dynamics are expected to drive a spending shift that favors the demand for healthcare. As we […]

When it comes to the market that is diabetes — it affects some 30 million Americans, more than 9% of the population, according to the CDC and rates of those diagnosed with diabetes rises with age, to 25% of those 65 and older — we are seeing a number of new products and services that […]

In Japan, the number of elderly people aged 65 or older accounts for roughly 27%  of the country’s 127.1 million population and by 2050 it’s expected to reach 40%. This data from World Population Review suggests Japan is the oldest country in terms of aged population and will remain so. For us here at Tematica, it […]

We’ve seen a number of interface technologies over since the dawn of the PC age, but until now and in one way or another they have all hinged on the screen. No matter how big or how small, consumers have been able to see what they have been looking for or working on, but with […]

Amazon’s recent PillPack acquisition and surging health and beauty sales should have not only have traditional pharmacies and beauty retailers concerned but really every retailer should be asking themselves just how “Amazon-proof” is their business model?

One of the hot topics on the street today is who will emerge as the victor when it comes to the electric vehicle. Our question is if there is no single winner in the auto segment today, why does there need to be one when it comes to electric vehicles and if that’s the case which strategy is best for investing in this tailwind?

Over the last few days, we’ve had quarterly results from two companies that are riding tailwinds associated with our Digital Lifestyle investment theme – Facebook (FB) and Amazon (AMZN). The report from each company, however, and their reception from investors couldn’t have been more different. 

  Grubhub was one of the first companies with its mobile and online ordering platforms to disrupt how we order food takeout and delivery. The company continues to expand its restaurant offering, which now spans more than 80,000 local restaurants in  1,600 cities under its Grubhub, Seamless, and Eat24 applications. With sales up 50% in […]

We’ve seen the subscription business model come back into vogue changing the way people buy meals, cosmetics, and clothing. Now we’re seeing it expand into the automotive market, which is bound to impact the auto dealer business model. Then again, as autonomous vehicles come of age in the next several years, and ride-hailing services become […]

Established businesses tend to focus on improvements to their existing products and services, making iterative changes and adjustments along the way, which allows them to maintain their pole position in their particular category, without rocking the boat too much, safe and steady. Disruptive Innovators on the other hand not only look to rock the boat but often tip it over and completely change the lake. 

We’re also looking for confirming data points for our investment themes, especially those that are poised to disrupt existing business models. In the case of 5G mobile technology, one of the meaningful questions is when we will see commercial deployments of both 5G networks and 5G devices. After all, a 5G network is pretty hard […]

  There is only so much one can learn from a two-dimensional book, and that is prompting the use of holograms, one of the technologies inside our Disruptive Technologies investing theme, in educational settings. Given the many systems and their inner workings inside the human body, holograms are a natural fit with medicine, and in […]

When we look at any of our investment themes, we are mindful of confirming data points as well as ones that challenge their base assumptions. That is especially true with our Disruptive Technologies and Business Models investing theme. While we recognize that disruption may not play out as expected and may take hold in other […]

This week Amazon finally did what it was long rumored to do — enter the pharmacy space with its acquisition of PillPack, an online pharmacy that lets customers buy medications in pre-made doses. From my perch, I see the long expected move by Amazon into the pharmacy space as putting pressure on the prescription drug business, especially for […]

We continue to see signals for the adoption of autonomous vehicles that will disrupt existing business models, which in our view raises more questions about not only retail store fronts, but those companies that invest in commercial real estate. We’ve long thought the brick & mortar pain would expand to include grocery and banks, and […]

One of the problems with US investors is they tend not to look much past thier shores for investment opportunities or confirming data points. Here at Tematica, we recognize our investment themes are global in nature, and that causes us to take a more wholistic perspective. The US is not the only country battling truck […]

Team Tematica logs plenty of air miles each year, and we would love to see a more stream lined way to getting not only in and out of the airport, but on and off the airplane as well. It seems, we’re not alone in that thinking and now Emirates, the world’s biggest long-haul carrier, is […]

On the heels of Apple’s WWDC 2018 that unveiled a new ARKit 2.0 that will bring will jump start applications utilizing Augment Reality (AR) across Apple’s more than 1 billion iOS devices, we are apt to see more apps rolling out those features. While the WWDC demo showcased multigame playing with Lego, there have been a […]

Use for new and Disruptive Technologies tend to crop in some unexpected places, but they usually help pave the way for greater adoption. One such use for augmented and virutal reality apps is in worker training. Carrying out these tasks in the virtual world leads to not only savings, but it also allows for the […]

The iPhone is not only one of the most addictive devices around, something that is becoming even more so thanks to Fortnite, it is also one of the most connected. As tends to be the case, however, Apple will lag the overall market with features until a tipping point is at hand. It appears that […]

Target has been one of those retailers that in our view has been lost between the shift to digital commerce offerings from Amazon (AMZN) and club/warehouse ones from Costco Wholesale (COST) and others. What we find interesting is how Target continues to baby step its way into the Connected Society with GPS maps being deployed […]

Technology tends to bring disruption, and more often than not disruption upends existing business models often times with a ripple effect in tow. Many people tend to think of direct impact, while we here at Tematica think of that as well as the second and third derivatives to be had. Maybe its the fact that […]

The thematic investing approach we utilize at Tematica Research focuses on identifying sustainable market shifts that come about due to shifting economics, demographics, psychographics, technologies, mixed with regulatory mandates and other forces. This week, we see all of these factors wrapped up in our Safety & Security investment theme in a decline in gun sales, […]

Over the last year, we’ve seen considerable progress in the use of voice interface technology, due in part to the success of Amazon’s (AMZN) Alexa, but also efforts by Alphabet and to a lesser extent Apple. Like most Disruptive Technologies, we are seeing the use cases continue to expand and ripple across our Cashless Consumption […]

Mobile phones are making our Connected Society ever more connected as we become increasingly obsessed with that precious device. It is the first thing many of us look at in the morning and the last thing at night, but there is ample opportunity for a lot more folks around the world to join us addicts!

After Amazon acquired Whole Foods, it seems that many forgot about its prior effort to disrupt the grocery industry with Amazon Go. Now the company has shared that it is close to bringing this worker-less concept that relies on its mobile app and a litany of sensors to allow shoppers to do their thing all […]

On our recent podcast deep dive on our Connected Society investing theme, we talked about efforts to remove friction to digital shopping. We’ve seen great strides with 2-day delivery and painless return policies, but there are still a few pain points to be overcome. One of them has been the ability for consumers to see […]

As we saw in 3Q 2017 earnings results from Asset-lite Business Model company Alphabet (GOOGL) and Connected Society company Facebook (FB), the current platform of chose among consumers is mobile. We are, however, seeing the seeds of the next technology revolution — voice-powered intelligent solutions — with more players entering the fray. The current leader […]

  Apple (AAPL) has historically done a very great job of expanding its capabilities by cobbling together a series of nip and tuck acquisitions in order to bring its solution to market at the right time. At its most recent iPhone event, Apple teased it would be bringing wireless charging to the iPhone and Apple […]

  Over the last three years Wal-mart has been exploring ways to compete more effectively with the rise of e-commerce, but also help improve its in-store experience for those shoppers that continue to… you know… actually go to a physical store. One of those strategies has been to test robots that would scan the shelves […]

Tematica’s investing strategy focuses not only on those long-term forces that generate formidable tailwinds or headwinds but also on major pain points, as solutions can generate serious value to entrepreneurs and investors alike. The problem of Social Security numbers for definitive identification is one such pain point.

  Jane Helgesen had a rough night recently, as nausea kept the 71-year-old retired nurse scurrying to the bathroom. A sensor under the bed recorded her comings and goings, sending alerts to her daughter, Britt, who lives nearby. Feeling better the next day, Helgesen used a doorbell camera to welcome guests, whose images are displayed […]

We expected the playing field in electric vehicles to become more competitive as a growing number of manufacturers looked to challenge Tesla (TSLA). Given the Rising Middle-Class and level of pollution in China — according to the Chinese Ministry of Health, industrial pollution has made cancer China’s leading cause of death — we are not […]

We have shared many a data point on the hidden costs associated with our Fattening of the Population investing theme. Recently the Center for Disease Control and Prevention reminded that us the vast majority of people do not realize the degree to which obesity and being overweight leads to cancer and other healthcare issues. We […]

We at Tematica have shared our view that Amazon (AMZN)is the innovator to watch as it continues to disrupt exisitng business models. Amazon is not always successful as evidenced by its flopping in the smartphone market, but like any true innovator they keep working at it and sometimes that means outflanking a competitor where they […]

The 2017 holiday shopping forecast from the National Retail Federation adds credence to our thesis on two call option plays.

We’ve seen several gaming and augmented and virtual reality applications as well as some furniture based ones come to market but now we are seeing a new partnership jump into the AR/VR waters. This pairing of MasterCard and Swarovski brings our Disruptive Technologies and Cashless Consumption investment themes together as shoppers can purchase within the […]

Apple’s shift to glass will likely drive incremental glass demand, much the way its shift to organic light emitting diode displays with the iPhone X is spurring demand for those products

The company formerly known as Google that goes by the name Alphabet is quietly expanding its hardware reach. First by scooping up certain HTC assets that helped develop Google’s Pixel smartphone, which we think is a back-door way of protecting its core search business as voice becomes a more dominant method of search. Second, Google […]

We are exiting this Disruptive Technology position ahead of what could be a contentious time ahead of a key compliance mandate.

We are once again boosting our price target on this Disprutive Technology company, and call out what it could mean for another position on the Tematica Investing Select List.

Shares of LSI Industries are poised to benefit from post-hurricane rebuilding as well as the overall shift to light emitting diode (LED) lighting vs. conventional lighting technologies.

After recently adding Nokia Corp. (NOK) shares to the Contender List, we are now adding them to the Tematica Select List given continued progress in its higher margin, intellectual property (IP) business.

  With innovation stalling, at least for now, in the smartphone market, we see companies shifting their R&D investments in technologies that are poised to disrupt other markets. One of those receiving the most attention these days is the automotive industry. While the guts of cars and trucks have become littered with chips and sensors, […]

Even though our concerns over the underlying fundamentals of the market remain — especially amidst this most recent rebound — thematic tailwinds continue to propel several of our positions on the Tematica Select List, particularly those tailwinds for the Cash-Strapped Consumer and Connected Society investment themes.

Several of the Disruptive Technologies investment theme companies on the Tematica Select List will play a key role in the Apple Special Event scheduled for Tuesday, September 12th, even if the companies themselves are never mentioned. With expectations once again running high ahead of this Apple event, here’s what we’ll be watching for as it pertains to the Tematica Select List.

As shoppers increasingly shift to digital commerce, retailers and providers of beauty products, in particular, are embracing the Disruptive Technology that is Augmented Reality (AR) to enhance the experience. The technology enables apps that allow shoppers to try products ranging from makeup to hair color, helping to shift shoppers to a company’s digital platforms. Augmented […]

Our thematic investing approach at Tematica Research includes exploring the intersection of shifting economics, demographics, psychographics, technologies, mixed with regulatory mandates and other forces. Truth be told, when it comes to regulatory mandates, more often than not we’re looking at how the government is getting in the way of innovation or pushing mandates that will force […]

A new coverage initiation pops shares of this Disruptive Technology company ahead of Apple’s next iPhone event on Sept. 12.

Over the years, we’ve seen the positive as well as the negative impact of regulatory mandates. Given our Aging of the Population theme, we suspect there is growing demand to be had for the Disruptive Technology that is self-driving cars. We also see the technology changing retail and grocery as well. While some may get […]

A filing by Samsung Electronics confirms our bullish stance on this semiconductor capital equipment company as China looks to become a player in chips.

Battle Lines Between Amazon and Wal-Mart are being set

As the country turns the page on the eclipse, political maneuvering retakes center, all while the battle lines between Wal-Mart and Amazon are being set for the future of retail. Of course, we have our sleeper pick too that is strengthening its position while everyone else focuses on WMT and AMZN.

Several quarters ago we shared our view that after capacitive touch, voice would be the next interface to watch. We’ve seen adoption growth in smartphones with Apple (AAPL) and Siri, Microsoft (MSFT) and Cortana, and then in intelligent speakers like Amazon’s (AMZN) Alexa powered Echo products. We’ve even read about licensing deals between Amazon and […]

Disruptive technologies have a way of upending the conventional way, and we’re starting to see that with augmented reality (AR). While games from Nintendo and demonstrations of gaming potential by Apple (AAPL) have been initial applications, AR is being adopted in a variety of shopping apps like the one from Sephora, and a new one […]

We continue to hear more and more about one aspect of our Disruptive Technology theme taking jobs. Yes, we’re talking about the growing use of robots as companies look to reduce costs while driving output higher. While we expect the use of robots to grow over time and expand the number of applications, we thought […]

One of the differentiators between successful Disruptive Technologies and those that never seem to leave the R&D stage is market acceptance, which is fueled by usable applications and products. While there has been much talk over the uses of augmented reality and virtual reality, including at Apple’s (AAPL) last WWDC event, the number of related […]

Self-driving vehicles, from cars to trucks to shuttle buses, will have a disruptive effect as that technology is adopted. From a thematic perspective, we see it further transforming the retail landscape as well as shifting how people think about their cars, one of the most underutilized assets around. We also see the technology serving as […]

It’s a phrase we use often here at Tematica, but it bears repeating: the only thing better than one thematic tailwind, is multiple tailwinds. This story on — a favorite of ours for keeping tabs on our Cashless Consumption investment theme among others — we count three themes:

While Alphabet warns of rising costs in its Google division, it crushes 2Q 2017 expectations as it continues to ride several thematic tailwinds. The market, however, is putting downward pressure on the shares, a move we don’t think is warranted as we look at the situation through our thematic investment lens.

One of things keeping the Unemployment Rate low has been the explosion in demand for workers in the many fulfillment and distribution centers across the country — after all, someone has to grab all the orders from the shelves and put them in the box to ship to you.  Or do they?

Three Square Market (32M) is offering implanted chips to employees interested in being biohacked.The new scheme, which 32M emphasized as being voluntary, begins on 1 August. According to the firm, the RFID chip will be implanted into their hand to “make purchases in their break room micro market, open doors, login to computers, use the […]

There’s no disagreement from us on the underlying thesis of this article by the Wall Street Journal — that until either gas prices go up or battery prices go down, it’s still going to be cheaper to own and operate a combustion engine car. But when we look at the landscape today through our thematic lens, we see a different narrative begin to emerge

Amazon’s Echo is about to have some more competition in the digital assistant arena: China’s e-commerce giant Alibaba will start selling a $73 voice-activated speaker.The Tmall Genie X1 will be available for 499 yuan ($73) to the first 1,000 people who buy it during a one-month trial, the company announced on Wednesday. It may prove […]

NIKE, Inc. (NYSE: NKE) today introduced the Consumer Direct Offense, a new company alignment that allows Nike to better serve the consumer personally, at scale. Leveraging the power of digital, Nike will drive growth—by accelerating innovation and product creation, moving even closer to the consumer through Key Cities, and deepening one-to-one connections.“Through the Consumer Direct […]

It seems every day we hear about the inevitability of the autonomous car with many hoping that it will usher in a new area of safety. Globally, road crashes are the 9th leading cause of death. Clearly, there is room for improvement and Apple’s (AAPL) CEO Tim Cook agrees, citing the auto industry as ripe for a major disruption in a recent interview.

It’s easy to imagine the battle for places to plug in an all-electric car could soon look like an airport terminal during a summer weather delay — which if you’ve been lucky enough to avoid, let’s just say it can be like a Black Friday battle royale as travellers hunt for places to plug in their i-thingies and laptops.

Traditional landline telephone service has been going the way of the Dodo bird as chord cutters look to slash communication costs and rely increasingly on their smartphones. With the latest software update, one can call or message any contact that has Amazon’s free Alexa app on their phone, an Echo or Echo Dot provided they have […]

  We continue to hear more and more about the potential for self-driving cars, which falls into our Disruptive Technology investing theme, but has implications across our Connected Society, Aging of the Population and other themes as well. Even the Oracle of Omaha, Warren Buffett lamented on the disruption to be had when self-driving cars […]

After last night’s market close, this Disruptive Technology investment theme company smashed consensus expectations for 1Q 2017 on both the top and bottom line, leading us to raise our price target (again!)

In this week’s issue we set the table for what is expected from several companies on the Tematica Select List, and also update our price targets for Amazon and Alphabet.

This Asset-Iite Business Model company is taking steps to win back advertisers, while a Rise & Fall of the Middle Class one holds its annual Investor Day today.

Uber Technologies Inc. is suspending its self-driving car program after one of its autonomous vehicles was involved in a high-impact crash in Tempe, Arizona, the latest incident for a company reeling from multiple crises.In a photo posted on Twitter, one of Uber’s Volvo self-driving SUVs is pictured on its side next to another car with […]

Rising consumer debt levels amid higher interest rates and a lack of wage growth are an ominous sign for this automotive company.

Whether its running out of dryer sheets, laundry detergent or even fabric softener, it’s one of those things that we tend not to think about until it’s too late. It usually means a quick run to store to grab some before that laundry pile gets too out of control. Feeling your pain, GE Appliances has […]

We’ve been hearing the rumble over virtual reality (VR) grow over the last several months, and now research firm IDC is calling for significant growth in VR shipments over the next five-years. While we can see a growing list of applications, from home repair to healthcare and education, we have to admit it’s rather rare […]

Our collective Tematica hats are off to Lowe’s Companies as it steps up its virtual reality efforts to move past design visualization to skills training. Imagine taking classes on different remodeling projects ahead of tackling that project in your own home. This embracement of Disruptive Technologies could empower Cash-strapped Consumer to become the next set […]

Healthcare expenditures are being driven by a combination of our Aging of the Population and Rise & Fall of the Middle Class investing themes, but there are two other Tematica themes that are poised to change the how, where, when and why people consume healthcare — Connected Society and Disruptive Technology. There is little argument that […]

What do rising minimum wages and the need for workers that are always prompt and courteous add up to? If you’re an employer, especially in the quick-service restaurant industry you may say higher costs and problems. When there are problems, companies tend to look for solutions and we’ve already seen ordering kiosks pop up at […]

We are once again boosting our price target on this Disruptive Technology stock, which faces ramping demand across a number of applications. Subscribers that are underweight the shares should use any post-Trump speech weakness to build their positions.

Ahead of President Trump’s speech to a joint session of Congress on Tuesday, Feb. 28, investors should consider some defensive measures just in case the stock market gets a case of post-speech indigestion.

We are once again boosting our price target on this Disruptive Technology company that is benefitting from the adoption of organic light emitting display technology across a growing number of consumer electronic and automotive applications.

It’s been a while since we’ve seen the TV ad touting cotton as the fabric of our lives. Over the last few years, as we’ve been migrating more and more into the digital society, we’ve thought the new fabric of our lives is chips. As we know from our devices, be it a laptop, smartphone, tablet, we are facing the need for more computing power, greater connectivity speeds and more connections into more things (cars, homes, and that Internet of Things thing).

As our Disruptive Technology play on the Tematica Select List holds a series of non-deal roadshow with meetings in San Francisco courtesy of Deutsche Bank (DB), a couple of key pieces of thematic datapoints emerge.

Shares of this Disruptive Technology play are once again climbing higher, likely due to bullish comments shared by compound semiconductor capital equipment company Applied Materials (AMAT) on the organic light emitting diode market on its earnings call last night.

As we shift more of our digital lives into the smartphone, security becomes increasingly important and that is giving rise to new technologies. Apple brought its TouchID into them mainstream with the iPhone, but Osram is scaling up its infrared iris-scanning technology for Samsung. We’re thinking these disruptive technologies are likely to move past smartphones […]

Yesterday the Bureau of Labor Statistics released its monthly JOLTS report (Job Openings and Labor Turnover Summary), revealing further details on labor market conditions in December. Despite all the post-election euphoria, the number of job openings actually declined by 4k and has dropped 130k since September. While the number of new hires rose 40k, the […]

2016 saw a dramatic rise in the number of online adverts containing malware, according to digital threat management company, RiskIQ. In total, there was a 132.6% rise in ‘malvertising’ compared with 2015. Delivered through ad networks such as Google and Facebook, threat actors use malvertising to propagate malware, ransomware, and scams (disingenuous advertising), as well […]

Perhaps it was the success of Snap’s recent vending machine promotion that has led McDonald’s to bring the first “Big Mac ATM” to consumers, but underneath it all the increasing interest in the fast-food industry for automation and robotics is no joke. Facing increasing cost pressures, including rising minimum wages, restaurant groups from McDonald’s to […]

Earlier this month we had CES 2017 in Las Vegas, a techie’s mecca of new whiz-bang products set to hit the market, in some cases later this year, but in others in 2018 and beyond. A person tracking the CES trade shows over the years likely remembers the changes in inputs from clunky keyboards and […]

We’ve all been there – you arrive home from the grocery store and are ready to eat a nice apple, nectarine, avocado or some other fruit or veg, and you have to content with an annoying product sticker. Worse yet, you may not see it and wind up taking a bite out of it. Individually, […]

When confronted with a structural change, like the one posed by the combination of self-driving auto technology and the psychographic shift toward fewer people owning cars instead opting for  Uber, Lyft,  Zipcar and the like most tend to contemplate the first derivative. Often times though the ripple effect to be had is far larger and […]

Among the sea of announcements at CES 2017, there were a number that focused on one aspect of our Disruptive Technology investing theme prompting us to make a new addition to the Tematica Select Investment List this week.

 According to data published by the Administration on Aging, about 28% (12.5 million) of noninstitutionalized older persons live alone (8.8 million women, 3.8 million men) with almost half of older women (46%) age 75+ live alone. There are all sorts of concerns over this aspect of our Aging of the Population investment theme, but where there […]

Talk about kismet! We just wrote about how when you examine the hours of actual use with one’s vehicle (car or truck) vs. the total cost of ownership, it’s really rather impractical. Now Mercedes unveils a potential answer to such low utilization levels that is another step in the direction of our Asset Lite investing theme […]

We’re starting to hear more and more about drones, and the fact that 7-11 beat Alphabet and Amazon to the punch with a delivery service is pretty big news to us. We suspect we are in very early innings with this aspect of our Disruptive Technology theme, but we’re certainly open to having burritos, burgers, […]

Looking through our thematic lens we see a number of investing themes performed extremely well for 2016

  We’ve said it more than few times… the only thing we love more than one thematic tailwind is the intersection of two or more. In the case of the Robo Barmaid, a pay-and-go beer dispenser, we’ve got three — Disruptive Technologies (robotics), Cashless Consumption (contactless payment cards) and Guilty Pleasure (the beer of course!). […]

We’ve heard quite a bit about the move to electric cars. Heck before its recently approved merger with Solar City, Tesla was essentially just an electric car company. Granted they are beautiful cars, but hardly ones that have hit the mainstream. We’ve seen competitive efforts from Chevrolet with the Volt and Honda is slated to […]

One of the bigger downfalls in our increasingly Connected Society when it comes to mobile connectivity is battery life as in making sure you have enough to keep the device powered and running. No juice in the battery means you have a brick in your hand that won’t communicate, message, shop, transact or take photos. […]

    Intel and Amazon plan to work together on a series of smart home initiatives in the near future, the companies announced today in conjunction with Amazon Web Services’ (AWS) re:Invent conference in Las Vegas this week.Most notably, the companies plan to create a reference design for “an Intel-based smart speaker” that includes the Alexa […]

The center of the home has been the attention of many companies, ranging from Apple to Google and Microsoft, that emphasize differing strategies (streaming of digital content and gaming among the most prevalent). One commonality in all of this is the TV, which has gone through several upgrade cycles as new technologies, such as LCD […]

Uber’s business model is one that is centered in our Asset Lite investing theme, but add in it’s partnership with General Motors and it has even more disruptive potential for how people use cars. Implications abound, but let’s remember that most auto manufacturers are also working on @#$%^& and that would put all of this on […]

While we tend to shy away from initial public offerings themselves, with customers that include Coca-Cola, Under Armour and Costco now that Cloud accounting software company BlackLine is public, we’ll keep our eyes on it as a contender for our Asset-Lite investing theme and for our Thematic Index. Blackline, a Los Angeles-based accounting software company, […]

We can deny it all we want, but the age of self-driving, driverless, or autonomous vehicles — whatever your preferred phrase would be — is coming. We’ve written how the confluence of an aging population, declining rates of Millenials even getting a license, and advancing technology will make this happen: We can fight it, but […]

A tough week of negative earnings pre-announcements for the stock market so far, we dig into which companies are finally coming to grips with reality and what it means for our investment themes and holdings

We continue to be prudent with the Tematica Investing Select List: maximizing returns while minimizing risk as we shore up the portfolio ahead of Q3 the earnings storm.

The focus of the self-driving, driverless, or autonomous car and its impact typically surrounds the consumers’ acceptance of the concept and when, how and yes, if the adoption curve will ever trend upwards, let alone take on the proverbial hockey stick curve upwards. As we’ve mentioned here in Thematic Signals many times recently, we’ve ruled out […]

  When faced with the choice of where to test its first fleet of self-driving cars, Uber went with the obvious choice — Pittsburgh? Not San Francisco or San Jose. Not Austin, TX or Brooklyn, NY. Nope, they went with Pittsburgh, and this article listed below from the New York Times reveals how and why […]

In 2004, the price for a gallon of gas averaged $1.88.  Four years later, after topping more than $4 per gallon, the average price settled in at $3.27 per gallon for the year, a nearly 75 percent increase. This move basically put Hummer out of business as who would want 8,000 lbs of steel on […]

We’ve shared here in Thematic Signals our view that the tipping for the driverless car is near. It’s quite simple really, the Millenials are driving less and fewer are even getting a license, let alone a car; while the baby-boomers are aging and giving up the keys (are having them ripped out of their bloody […]

Several years ago Corporate America flirted with Second Life, but the combination of 3D-scanning technology and Virtual Reality (VR) could lead to a more robust shopping experience. Adoption by both businesses and consumers could accelerate the transformation of the mall from shopping hub to one more focused on dining and entertainment as consumers browse from […]

The Connected Car market lurched forward as Hyundai now offers the ability to use Amazon’s (AMZN) Alexa voice interface to control the car. Voice controls inside the car have been around for some time in products from the Honda Motor Company (HMC) and others, but the voice technology has made even Apple’s (AAPL) Siri look […]

Artificial intelligence. Drones. Autonomous vehicles. Voice technology. How many Domino’s (DPZ) pizzas have been consumed during late-night coding and strategy sessions across the tech-hubs throughout the world? Well, maybe the pizza delivery man has been taking notes while delivering, because don’t look now, but Domino’s is no longer just feeding the tech world, they are part […]

  Change is never easy, no matter what it is and how it takes shape. In this case, as the adoption rate of Replacement / Demand player Airbnb and other peer-to-peer platforms approaches the mainstream, the economic shifts occurring in local cities is dramatic. The obvious is the shift in dollars from hotels into the hands of […]

Very Minority Report-ish for the Wearables category but then again so was chiral scrolling before Apple brought it mainstream with the iPhone. Always a question of whether Disruptive Technologies such as this make it from the lab to the real world and then to commercialization, but this looks pretty cool.   A group of PhD students […]

Slowly but surely we learn of more tasks around the house, particularly those annoying ones that we’d like to put off if we can, are being overtaken by robots. While this may reduce tasks in and around the home, it does have us wondering more and more about the future of civilization and whether Disney’s […]

Another data point that the input interface is moving past hardware (keyboard, mouse, trackpad and screen) to voice. If you’ve been cooking and your hands are coated in raw chicken meat, you know the power of the voice interface associated with Amazon’s Echo and Apple’s Siri. We see far more potential as the Connected Home […]

Closing the books on July, the Tematica Select List had a number of positions that handily outperformed the S&P 500, which rose 3.6% for the month.

At Tematica Research, we identify investment themes — or thematics as we refer to them at Tematica — by looking at the intersection of shifting economics, demographics, psychographics, technologies, mixed in with regulatory mandates and other forces. To put it more simply, we look at the real world that companies are operating in, and try and […]

The Rise & Fall of the Middle Class investing thematic we’ve developed at Tematica Research largely looks at the emerging middle class in developing countries and their increasing demand for goods and services — everything from healthcare and communications, to clothing, food and consumer goods. The demand for cheap labor has led companies from all […]

  It’s one thing to drive an electric car on a daily basis and run the risk of the battery running out . . . but what about being 30,000 fee up in the air with a battery keeping your plane aloft? This electric-powered Disruptive Technology appears to be coming to the skies if NASA and several airlines have […]

Being able to monetize patent portfolio is a key strategy in our Asset-Lite business model, but that can take many forms. From an outright sale to a highly profitable licensing business model like we’ve seen at Qualcomm, Dolby and Rambus, patents can drive significant cash flow. Of course this hinges on the competitive position and time to patent expiration. Ever since […]

No slowdown expected in mobile data consumption as more smartphones are sold and carriers deploy faster mobile networks globally. A rather compelling view for our Connected Society and its going global. Implication for smartphone vendors, RF chip companies, mobile infrastructure equipment and many more as newer mobile technologies are deployed. According to the recently published Ericsson […]

It seems that at least once or twice per week we are asked, in some form or another, one of the following questions: • What sectors do you rate as a buy right now? • Do you like Financials? What about Technology? • What is going to be the next big sector? • What sectors […]

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What is Thematic Investing

Thematic investing looks to identify pain points by looking at the intersection of shifting economics, demographics, psychographics and technologies, mixed in with regulatory mandates and other forces. Such pain points result in a pronounced secular market shift that shapes and impacts behavior, forcing companies to make fundamental changes to their businesses to succeed.  Read More >>

What We Do at Tematica

Tematica Research provides equity research, economic insights, and investment ideas based upon its proprietary thematic perspective of the world and financial markets. The thematic discipline utilized by Tematica across its research and economic commentary, as well as its index and portfolio construction efforts, is the culmination of the more than 20 years Chief Investment Office Chris Versace spent analyzing industries and companies.  Read More >>