If you ask the CEO of Under Armor (UA) about the "wearable camera " market, he will tell you (he has said this in recent quarterly calls) that rather than outsource the camera portion, he would prefer to get into the wearable camera business itself and build them into their clothing. That struck a chord with me as an investor, because I realize that this really defines the successful characteristics of a CEO: to succeed, you must be nimble, aggressive and smart.
Although Under Armor has not jumped head over heels into wearable cameras, Digital Ally (DGLY) is in that business, and today they achieved an important milestone- they received GSA status, which means the US Government becomes a client.
Needless to say, the stock went higher. However, it's worth noting that Federal and local law enforcement will all be using wearable cameras in the near future, so imagine how important the GSA contract is to Digital Ally.
The market will be huge, and GoPro (GPRO) , Apple Inc. (AAPL) and others will be looking to grab a piece of the market. Keep in mind, I am not endorsing Digital Ally here, I am simply talking about the growth potential of the wearables market. Digital Ally has some issues with profitability in it's product lines, and further research is required on any company you put money into. Guessing does not work in investing or portfolio management, so learn everything about the company before investing a dime, call the company, listen to the old conference calls, listen to future conference calls. Investing is hard work - over the long haul, it is not about luck.
Video Storage Needs Represent a Boon to Cloud Computing
Another important point to consider is where in the heck will they store all of the video? Video takes space on your hard drive, and it sucks up space in your cloud storage - so in order for it to be manageable, it needs to be organized. Useless video is discarded and useful video is kept on file (easier said than done), but this is why the cloud software market is a growth market.
In conclusion: Pick stocks that have growth stories and understand how they will make money, because a stock is nothing more than how much money it makes...or will eventually make. Wearable cameras and cloud storage software are areas with the wind at their back!
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