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INDUSTRY 4.0

INVESTORS REPORT

The Unstoppable Technology Leading a $14 Trillion 4th Industrial Revolution

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Industry 4.0The Unstoppable Technology Leading a $14 Trillion 4th Industrial Revolution

Dear Nova-X Report Reader,

In my report, The One Device To End All Disease I told you about MEMS, those brilliant micro-sensors, smaller than a pinhead, that are rapidly and radically changing the world.

Now, I want to tell you how those same tiny sensors will be the single biggest catalyst behind what many are calling The Fourth Industrial Revolution...

Its a revolution so groundbreaking, most experts believe it will join the steam engine... electricity... even the invention of the computer... as one of the most important economic game-changers in history.

All three of those previous industrial revolutions created massive wealth, not just for the companies and individuals behind the innovations...

But also for the thousands of early adopters, who first recognized that these technologies would upend conventional norms while disrupting the entire fabric of our civilization.

And yet this Fourth Revolution has the real potential to be bigger than anything thats come before it. Far bigger.

This isnt just investment-newsletter hyperbole.

IMMEDIATE ATTENTION REQUIREDFor the most recent and up-to-date information

please visit www.moneymappress.com

Investors ReportFrom: Michael A. Robinson For: Nova-X Report Subscribers

the NOva-X RepORt Investors Report

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As we speak, everyone whos anyone in the tech sector is currently investing millions even billions to claim their stake in this once-in-a-millennium tech movement, hoping to position themselves as a market leader:

IBM is spending $1.8 billion a year to secure their market share.

HP believes a $10 billion investment will establish their dominance in this field.

And, most astonishing of all, Cisco CEO John Chambers recently announced plans to restructure his entire company around it.

Chambers believes this new technology will be the key driver of Ciscos growth and its customers profitability over the next decade saying it will push profit opportunities to over $14 trillion.

Thats $14 trillion in profits not revenue.

When you consider that the entire U.S. economy is worth about $16 trillion, you start to understand just how big this tech movement is going to be.

Were all in, Chambers said. Were making this our cornerstone. It isnt a billion dollar commitment. Its way, way beyond that.

Chambers characterized his companys move into this new realm as aggressive. But as youll see from this report, he really has no choice.

As he himself said, the market is moving so fast.

And clearly Chambers wants to make sure his company has all the resources needed to strike, as soon as the first quarter of 2014 hits.

Youll want to be ready to...

There is no doubt in my mind the profits from this Fourth Industrial Revolution will be massive not just for companies like Cisco.

But for everyday folks who recognize the blistering force behind this and seize upon it quickly.

Of course, the Fourth Revolution Im talking about is no other than machine-to-machine (M2M) communication. Or, as it is more popularly called, the Internet of Everything (IoE).

thE NOVA-X REpORt Investors Report

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In This Revolution, Everything (I Mean Everything!) Gets Connected

Please dont mistake the Internet of Everything as being primarily about smartphones and tablets.

This is much bigger than your iPhone or iPad. Much, much bigger.

You see, the Internet of Everything is a new high-tech reality where almost everything is connected and able to communicate.

Think of it as a kind of Super Internet that opens the door to all sorts of opportunities, including:

Wearable technology like smartwatches or intelligent glasses.

Special monitoring sensors that could signal when an airline pilot or a long-haul trucker starts suffering from fatigue.

So-called smart homes that can be configured from afar (you could control your entertainment system, your air conditioner, or safety-monitoring systems).

Components in cars, trucks, and airplanes that can signal when theyre about to fail.

Sensors that can help vehicles even those that are unpiloted avoid collisions.

And of course medical MEMS and sensors that can stop cancer, heart disease, diabetes, and every other illness known to man.

Its pretty heady stuff. And those are just a few examples.

IMS Research says there will be 30 billion connected devices by 2020. Ericsson (Nasdaq ADR:ERIC) one of the largest telecommunications companies on the planet has an even more aggressive view of whats to come. Ericsson says there will be 50 billion enabled devices in place worldwide in that same time frame.

The only real limit is the imagination of the engineers and scientists who create these things. As it stands now the technology spans into nearly every economic, social, and civil segment of society.


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For example, one Internet of Everything technology warns firefighters of a remote blaze long before flames rage out of control.

Another Internet of Everything system tracks vegetables from the ground to the grocery store... forewarning authorities of potential deadly bacterial outbreaks.

Even factories and Big Box stores are using Internet of Everything sensors to collect priceless data... track inventories... ramp up assembly lines... and deliver products faster, cheaper, and much more efficiently.

Insurance companies are using Internet of Everything sensor technology to monitor their customers driving habits... a way to promote safety, while rewarding good drivers with discounts.

And heres another ingenious innovation, one that can make roads far safer: Micro devices embedded in cars, vans, and trucks, capable of talking to each other to avoid collisions and reduce traffic deaths.

This is not science fiction... its all happening now.

And while the Internet of Everything may sound hard to comprehend at first, its actually far less complex than you may think.

The Ingenious Way the Internet of Everything Gets Machines Talking To One Another

Not surprisingly, it all starts with MEMS... the sensors that lie at the heart of the entire Internet of Everything.

These sensors get embedded in objects everything from your home air conditioner system to automobiles to parking garages and bridges.

Once embedded, they actively gather all the data that ultimately tells a system when action is required.

Theyre gathering basic log data... geo-location data... diagnostics... CPU utilization... temperature readings... rules... whatever is necessary for that particular system.


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Of course, the amount of data being collected is massive. Thats why in tech circles, we call this Big Data. (By the way, Big Data is yet another one of the huge high-profit tech trends Ill be closely following for you in Nova-X Report.)

Reams and reams of this data is collected and sent through wire and wireless networks using the same Internet Protocol (IP addresses) that connects the Internet.

Then, the data flows into supercomputers for analysis.

Once all this data is deciphered and understood, an active response is generated.

Whats most amazing about all this and what makes the Internet of Everything so revolutionary is that the active responses can be made without human intervention.

Information and Analysis Automation and Control

1. Tracking Behavior

2. Enhanced Situational Awareness

3. Sensor-Driven Decision Analytics Behavior

1. Process Optimization

2. Optimized Resource Consumption

3. Complex Autonomous Systems

Monitoring the behavior of persons, things, or data through space and time.

Examples:

Presence-based advertising and payments based on locations of consumers.

Inventory and supply chain monitoring and management.

Achieving real-time awareness or physcial environment.

Example:

Sniper detection using direction of sound to locate shooters.

Assisting human decision making through deep analysis and data visualization.

Examples:

Oil field site planning with 3D visualization and simulation.

Continuous monitoring of chronic diseases to help doctors determine best treatments.

Automated control of close (self-contained systems.

Examples:

Maximization of lime kiln throughput via wireless sensors.

Continuous, precise adjustments in manufac-turing lines.

Control of consumption to optimize resource use across network.

Examples:

Smart meters and energy grids that match loads and generation capacity in order to lower costs.

Data-center management to optimize energy, storage, and processor utlization.

Automated control in open environments with great uncertainty.

Examples:

Collision avoidance systems to sense objects and automatically apply brake.

Clean up hazardous materials through the use of swarms of robots.Source: McKinsey


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In other words, connected machines are deciphering the data collected by the sensors... communicating a response based on the analysis... and then generating an action... all on their own accord.

Take, for example, how companies like John Deere, the mega agriculture supply manufacturer, uses the Internet of Everything technology to optimize their field machines and help farmers complete tasks faster, more accurately and far more profitably.

First, the farming equipment and the ground itself are loaded with sensors. These sensors, along with remote satellites, collect a wide sampling of data regarding soil, crop, and terrain conditions covering each individual part of a field.

All of this data is then sent via the Internet to supercomputers, where analysis is quickly made.

Then, in a flash, instructions are relayed back to the farming equipment which can automatically make adjustments to its fertilizer payload, for example, based on the information derived.

The farmer is never actually involved in any decision making the Internet of Everything technology has optimized the whole process for him in this case delivering just the right amount of fertilizer to each individual part of the crop.

To take it one step further if the sensors detected something detrimental to the crop, a warning would be sent directly to the farmers smartphone, alerting him to the issue in real time.

Of course, this is just one scenario of how the Internet of Everything can improve a companys efficiency and bottom lines.

But its a scenario that be replicated in nearly every business system across every sector on Earth.

Ive already shown you the riveting profit potential from the healthcare and medical arena in my report The One Device To End All Disease.

Now, Id like to explore three additional sectors where I believe youll see immediate and unprecedented profit opportunities from this


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technology: Oil and Energy... Transportation... and Infrastructure (the building of smart cities.)

So let me briefly touch upon each of these...

Internet of Everything Hot Growth Sector #1: Oil And Energy

To put it simply, the oil and gas industry is relying on extensive sensor networks to help them recover more oil.

In fact, Royal Dutch Shell (NYSE:RDS-B) and Hewlett Packard (NYSE:HPQ) are now teaming up at this very moment to literally cover the entire planet with more than a trillion MEMS devices.

Their program is called CeNSE which stands for The Central Nervous System for the Earth.

Under the CeNSE program, the sensors will be placed under the ground. Each will be monitoring, detecting, and analyzing any seismic movement.

Through their Augmented MEMS Fusion Engines they will communicate with each other inside HPs on-site supercomputers and networking systems.

Theyll work together seamlessly to identify the exact location of the sweet spots for each discovery. And which direction the oil is flowing.

Because of this program, its estimated Shell can increase its production capabilities by a whopping 1000% while cutting costs in half.

Shell already derives $453 billion a year in revenue from their energy production capabilities. So, thanks to the Internet of Everything, Shell is predicting they will find $4.53 trillion in energy each year at half the cost.

In another example, energy preservation and production is already being greatly improved by this new technology.


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For example, a major power outage can cost energy providers millions. Often, providers dont even know where or why an outage has occurred.

But with the Internet of Everything, power generators and power poles are entirely connected. That means operators get updates and performance data instantly, allowing them to track and fix issues before they turn into nightmares.

Likewise, corporations are saving huge amounts of money on fuel costs with Internet of Everything technology.

For example, UPS reportedly saved nine million gallons of fuel by monitoring routes and minimizing left turns in the U.S. and Canada.

Which leads me to my second area of high Internet of Everything growth...

Internet of Everything Hot Growth Sector # 2: Transportation

The automotive subsector is another place youll be hearing a lot about Internet of Everything technology.

Of course, weve already seen cars outfitted with wireless connectivity, Bluetooth technology, and apps. Heck, todays cars are essentially becoming mobile devices with wheels. In fact, there are at least 50 MEMS in most cars.

Now GM is promising to bring 4G LTE connectivity to nearly all their models. This built-in technology will give vehicles special embedded capabilities through their popular OnStar service.

And Zipcar, the worlds largest car-sharing network, has truly turned the world of rental cars upside down by embedding sensors in their vehicles. These sensors provide all the information needed about a particular customer including his complete mileage agenda making the age old rental center unnecessary.

The fact is, the stakes and potential for monetization are huge in a world where roads also have sensors and can communicate with


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the vehicles passing over them to determine traffic patterns, find more sustainable ways to route cars and perhaps even generate data to be sold to insurance companies or other businesses seeking to tap transportation information.

Make no mistake: The smart streets subsector is flourishing. But its not just about cars.

From airplanes to trucks to trains, the transportation industry is quickly realizing the vast impact of Internet of Everything technology.

For example, flight delays can cost the airline industry up to $40 billion every year.

But by monitoring data from sensors installed in aircraft equipment and engines, airlines can save billions by predicted maintenance issues long before they occur.

Here are some additional examples:

Connected Garbage Trucks: These sensors connect directly to truck fleets alerting them to bypass empty or half-full bins, and go straight to overflowing ones. This cuts overhead, and reduces pollution.

Smart Streetlights: Cities around the U.S. are installing thousands of smart streetlights that operate automatically saving millions in electricity.

Smart Parking: Parking garages across the U.S. are using Internet of Everything software to automatically inform drivers where parking spaces are available.

Internet of Everything Hot Growth Sector # 3: Infrastructure

Soon the Internet of Everything technology will be fully integrated into buildings, roads, bridges, windows, parking garages you name it.

Im talking about a $113 billion smart city infrastructure boom worldwide.


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In fact, its happening now. Already 12,000 MEMS devices have been deployed in the small city of Santander, Spain. Theyve taken over the tracking and management of the citys power grid and trash disposal system. So far this small test has saved the city 25% on its electric bill and 20% on its garbage expenses.

Megacities those with populations over 10 million people will soon be sure to follow.

Indeed, Paris has 1 million smart city sensors already installed.

MEMS devices are being buried under the asphalt, affixed over street lamps and atop city buses.

Theyre measuring everything from air pollution to open parking spaces.

Asian cities, especially in Japan and China, are now aggressively building Internet of Everything sensor technology into new infrastructure projects.

In fact, the Chinese government recently launched a grand urbanization strategy: A five year plan to build entirely connected smart cities to accommodate the 450 million rural Chinese citizens migrating to urban areas.

During the first phase of development, China will spend more than $12 billion building this technology over the next two years.

And the Japanese government is installing this technology in two cities: Fujisawa and Mitaka. Its only a matter of time before similar programs will find their way into American cities.

This technology is also being used by the Army Corps of Engineers to repair Americas crumbling infrastructure. Like on bridges, where sensors constantly record movements, tilt, and orientation to detect maintenance issues before its too late.

The bottom line: Were in the early stages of this becoming standard technology for every modernized city in the world.


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How To Profit From The Fourth Industrial Revolution

In my report the One Device To End All Disease, I recommended one company that gives you the biggest opportunity investing in MEMS devices. Not only is that company the worlds leading MEMS creator, they also control the majority of patents for this revolutionary technology.

Now, let me turn to some additional ways you can profit today.

The Brains Behind The TechnologyWhile MEMS are the heart of Internet of Everything technology,

microcontrollers (MCU) are the brains.

Microcontrollers are tiny computers embedded into machines. Like computers, they include a CPU, RAM, ROM... even I/O ports.

But their job is very different. While a normal computer specializes in multi-tasking, a microcontroller is designed to complete only a single task over and over again like operate the cruise control in your car... or activate the On Demand feature of your TV remote.

They use little power and, thanks to efficient fabrication techniques, can be designed and manufactured quickly and cheaply.

For these reasons, the market for these tiny dynamos is growing like gangbusters.

Youll now find microcontrollers in nearly every electronic device, from cameras to cell phones to keyless locking devices. Youll also find them in home appliances like dishwashers, washers and dryers, and microwave ovens. Theyre found in power tools, office machines, medical devices, and toys. Sometimes multiple microcontrollers are embedded in a single product. Some cars, for example, have as many as seven.

And the demand keeps rising. In 2011, 10.64 billion units were manufactured. That number is expected to triple over the next five years.

The bottom line: The $16 billion a year microcontroller industry is


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poised to skyrocket. Which is why a large number of tech companies are suddenly battling each other for leadership in this space.

These companies include some big names like Renesas Electronics... Fujitsu... Infineon... and Texas Instruments.

But for the highest growth potential, I like a much smaller company. One trading for under $10 right now. Im talking about San Jose, CA based Atmel Corp. (Nasdaq:ATML).

Founded in 1984, Atmel has been designing and manufacturing cutting-edge microcontrollers for several decades.

But its only recently that theyve seen extraordinary growth from this technology.

In 2006, for example, microcontroller sales made up only 24% of its total revenue. Today they account for an astounding 62%. In fact, more than $890 million of their $1.4 billion total revenue came from microcontrollers.

Of course, Atmel is no one-trick pony. Theyre also a world-class supplier of wireless and serial memory products. And theyve recently developed a significant line of integrated touch devices. In fact, one such device is being used by Microsoft for its Windows 8 operating system and can be found in 70 different tablets and ultrabooks, while being involved in more than a 100 other Windows 8 programs.

But clearly, this company sees the Internet of Everything as the best way to profit in the future and that means a strong focus on microcontrollers.

Just recently, in fact, they scored a significant victory: Large microcontroller contracts with Samsung, supplying the sensor hub in their hugely popular Galaxy S4 Android smartphone. Analysts predict Samsung is looking to manufacture 10 million units of the Galaxy S4 per month.

Atmel is also a major microcontroller supplier for Amazons top selling reader, Kindle Fire. And they recently added Blackberry as a customer, supplying its maXTouch controller for the new (and highly regarded) Q10 smartphone.


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Yet, heres what may be Atmels most intriguing development of all...

Late last year, Atmel purchased Ozmo Inc., a provider of low-power Wi-Fi. This move clearly gives Atmels Internet of Everything future plans a big boost.

Heres why:

Ozmo specializes in wireless personal area network technology (WPAN)... the kind of thing exactly suitable for connecting fixed and portable peripheral equipment with Wi-Fi platforms. In other words, with Ozmos already developed Wi-Fi Direct technologies, Atmel has enhanced their leadership role in the Internet of Everything with one fell swoop.

Perhaps Atmels CEO Steve Laub explained the purchase of Ozmo best: This acquisition accelerates Atmels strategy to provide complete solutions for products that will make possible the Internet of Everything.

Action to Take: Buy Atmel Corporation (Nasdaq:ATML) at market and use a 25% trailing stop.

Cashing in on Connected DevicesOne of the worlds dominant mobile-device chip companies also

makes for a good play on the Internet of Everything. Im talking about ARM Holdings plc (Nasdaq ADR:ARMH).

ARM is part of the new breed of semiconductor firms known as fabless players. What that means is that ARM designs chips that are modified and made by others allowing it to collect hefty royalties for its innovative work.

This strategy is an important one for a couple of reasons. First, ARMs factory-less business model makes it a high-margin operation. Second, ARM really is an innovative player: The companys microprocessors run nearly all of the worlds smartphones and roughly one-third of all consumer devices.

Little wonder ARM shareholders have been among the biggest winners of the Mobile Revolution. Over the last five years, ARM shares


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are up 602%. In other words, $25,000 invested in ARM in September of 2008 would be worth $175,000 today.

But before you lament having missed another one, let me be very, very clear: The Internet of Everything is going to blast ARM to a whole new level.

The best is yet to come. You see, ARM just bought a Finnish software startup called Sensinode Oy in a deal, the price of which wasnt reported.

This startup has a suite of software products that can be embedded in devices so they can connect with the Internet and then communicate with one another.

Sensinode will fit nicely into ARMs existing mbed program, which designs microcontrollers for digital devices used in an interconnected world.

John Cornish, executive vice-president and general manager of the system design division at ARM, says the purchase will help his company deploy thousands of new and innovative Internet of Everything applications.

For its part, Sensinode is now focused on three main IoE markets. They are:

Connected Homes: Today, residential systems like energy monitoring, home security, home automation, and elderly monitoring are connecting to the Web for more efficient user interface. Sensinode has software that runs wireless devices, routers, and smart meters.

Lighting Control: Sensinode focuses on mass-scale lighting applications, including those for commercial buildings, street lights, and outdoor LED lighting. It offers a street lighting app that includes Google Map integration with real-time monitoring and control, alarms, firmware updates, and light-group management.

Smart Grid Networking: The company specializes in infrastructure systems for automatic meters. These allow


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communication with wireless meters, sub-meters, and home devices. Sensinodes software works with low-cost chips that communicate through radiofrequencies.

And with the ARM stock trading well below its recent high, the timing of the Sensinode buyout couldnt have been better.

Because of its dominance in the smartphone and device markets, ARM essentially has a license to print money. The company has a relatively modest market cap of around $19 billion, roughly $874 million in cash on hand, and almost no debt.

ARM even generates $261 million in free cash flow (FCF) a year.

Over the past three years, the company has grown earnings per share by 31% a year, meaning ARMs profits and its stock price could double in about 2.5 years.

Clearly, ARM stands to grow even more in the years ahead as it targets the huge market for the Internet of Everything.

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