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Tickers in this Article: SAP
In Friday's StreetAuthority Daily, we featured an interview with InvestingAnswer's newest analyst, Nancy Zambell.

In the interview, Nancy explained how she recently discovered a small group of companies currently predicting the future. At the time she couldn't reveal much because she was still finalizing her analysis.

But today, her research is finished. And as a reward for being a loyal customer in good standing with one or more of StreetAuthority's regular publications, later in this essay we'll be giving away a free stock pick from her newest premium report, "The Seven Companies Predicting the Future."

#-ad_banner-#Before we do though, we want to first remind you of her amazing discovery...

If you saw Friday's interview, you'll remember Nancy told you how a handful of companies are currently hoarding thousands of high-powered supercomputers in tightly guarded compounds scattered throughout the United States.

Located in remote areas deep in America's backwoods, these compounds contain a new technology that can predict the outcome of future social and economic events. She called the facilities behind this technology "prediction plants."

Nancy also told you how using these "prediction plants," companies could predict things like when the next financial crash will be... if a given retail chain is likely to beat earnings estimates... and some can even go so far as to predict which women in any given population will have breast cancer.

But unfortunately due to time constraints, she wasn't able to tell you exactly how these 'prediction plants" work...

Simply put, "prediction plants" wouldn't be possible if it weren't for something Nancy calls "bits," short for bits of information. She explains the significance of "bits" in her report:

Bits haven't gotten a lot of broad attention yet in the mainstream press. But "in the know" people are making some big comparisons.

The European Consumer Commissioner says that bits are "the new oil."

Kenneth Cukier of The Economist writes that bits are "like a magical diamond that keeps giving."

And while talking about the search for more bits, former Columbia professor Eric Siegel writes that "we have ourselves a genuine gold rush."

Where do these bits come from? They come from you, me, and everybody else. We create them. Every time you click on a website, surf the Internet, buy something online -- pretty much any time you do anything on a computer -- a bit is created.

They basically travel from our computers through the Internet and wind up in little black boxes that reside in remote locations. That's where they're stored.

Once they've arrived at their destination, the "prediction plants" analyze the bits using a process called predictive analysis. This procedure takes the information in the bits and puts them through billions, if not trillions of tests. Turns out, if tested enough, these bits can reveal patterns... patterns no human could ever detect.

Garrett Clark, Publisher at InvestingAnswers.com, recently had the chance to sit and talk with Nancy about predictive analysis -- as well as the companies behind it -- in a one-on-one interview this week:

Garrett: Can you give us an example of how [predictive analysis] works in real life?

Nancy: Sure. In 2009, a deadly flu virus called H1N1 began spreading. This scary flu resembled the Spanish flu of 1918 -- a strain that killed tens of millions of people -- so health officials were in panic to halt its spread.

Unfortunately, the Centers for Disease Control and Prevention couldn't pinpoint its exact location. And every time they'd finally track it down, it had already spread further.

But it turns out that one company knew exactly where the disease was spreading. It had even published a paper about it in the scientific journal Nature weeks in advance.

And this was without drawing blood, checking vital signs, or even talking with a single patient.

Garrett: How did it know?

Nancy: Well, it owned several "prediction plants."

So it fired up the computers and started its predictive analysis. In all, it ran a mind-blowing 450 million different mathematical models at speeds that most computers couldn't match. Certainly no human could do anything like that.

Sure enough, after analyzing enough bits, the computers were able spit out where the next flu outbreak would happen.

The company then worked with government officials and gave them a powerful tool to combat this potentially deadly flu.

You can see the whole interview by clicking this link here, or by following the link at the bottom of today's issue. For those who are interested I urge you to check it out.

But the point is these "prediction plants" are sitting on some of the most groundbreaking technologies of the past century. To think that one day these plants could be used to diagnose illnesses, predict the spread of future populations and even identify which companies will grow the fastest is absolutely mind-boggling.

The few investors who know of these prediction plants are also getting excited about the possibilities. Not only have all seven companies with prediction plants beaten the market over the past five years, three have seen gains in excess of 250% -- and one is up a staggering 1,576% in that time.

One company on that list is the German software giant SAP (NYSE: SAP):



While SAP's run has been impressive, Nancy thinks those gains have only just begun.

If you didn't already know, SAP is one of the biggest players in technology industry. The company has its hand in everything from analytics to cloud computing, from mobile phones to database management. If it's considered high-tech, then SAP likely has a division for it.

Given the company's presence in the industry, it's no wonder SAP plays a pivotal role in the development of these prediction plants. In fact, SAP provides the infrastructure to collect the "bits" used in predictive analysis. Without SAP's analytical systems, many of these predictions wouldn't even be possible.

But "prediction plants" aside, there's another reason to like SAP.

And that's because unlike Oracle (NYSE: OCL) and IBM (NYSE: IBM), two of its competitors, SAP has placed considerable focus on one of the fastest-growing areas in tech -- cloud computing.

You may not know this, but cloud computing is often viewed as one of the most promising areas in tech today. That's because as more and more employees start to work from home, cloud computing systems like the ones SAP provides are quickly becoming some of the most in demand products by today's business community. CNBC's Jim Cramer has even said cloud computing, social networks and mobile technology are considered the "holy trinity" of tech.

And when it comes to the cloud, no one does it better than SAP. In fact, according to a recent report by Morningstar, "SAP's success in growing cloud revenues is impressive... cloud revenues should grow 25% in 2014," faster than the rest of the industry over the same period.

What's more, in a recent conference call with analysts, SAP's management forecasted annual sales of $30 billion by 2017 -- up a full 30% from its 2013 revenue of $23 billion. That's significantly higher than the expected growth rates for both IBM and Oracle.

But while Nancy thinks SAP should be a consistent long-term performer, it's far from the only stock she likes in this space. There are six other companies -- each on the forefront of this groundbreaking revolution -- that are capable of handing outsize returns as this trend unfolds.

Unfortunately, we don't have time to tell you about each and every one of these companies here.

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