Oxford Club Radio: Lou Basenese of True Alpha on 2017 Tech Trends

by Investment U Research Team

This week on Oxford Club Radio, Marc talks with Lou Basenese. He’s the founder of Disruptive Tech Research and the editor of Agora Financial’s True Alpha newsletter. In the clip below, Marc and Lou discuss tech trends for 2017.

Marc starts by asking Basenese about the hottest tech trends going into 2017. But before answering, Basenese offers a “disclaimer” about tech predictions. He cautions investors that they must know the difference between news hype and real growth and applicability. 7-Eleven’s Slurpie-delivering drones make for a great headline, but they don’t necessarily signal a breakthrough in drone tech.

Basenese explains that tech investment opportunities fall into two categories. First, there are prerevenue companies that are developing cutting-edge products. These companies tend to be higher-risk investments. They often lose money during the early part of their lives. But for the same reason, prerevenue companies that “make it” offer the highest returns to investors.

In Basanese’s view, emerging tech investors must be vigilant for red flags. If a young tech company lacks patent protection, partners or steady results from R&D spending, he advises investors to stay away.

Then there are lower-risk tech companies that have sales. These might not have as much upside potential as emerging tech companies. But they’re more reliable investments. They’re also easier to evaluate. Investors can simply judge a profitable tech company by its fundamentals.

Basenese feels that the industrial Internet of Things (IoT) will be one of the most lucrative tech trends of 2017. The field encompasses enterprise applications of connected devices. It includes connected cars, factory equipment and retail tech.

He then lists off a few small cap stocks that he favors within the industrial IoT space. But to hear those picks, you’ll have to listen to the full episode.

This is just a sample of the insights from this week’s Oxford Club Radio podcast. To listen to the full broadcast, click here. And while you’re there, be sure to subscribe (it’s free).

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