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2013/05/03

Talking ‘Bout a (Technological) Revolution…

The Sovereign Investor

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Talking 'Bout a (Technological) Revolution…

By Jeff D. Opdyke, Editor of The Sovereign Individual

Dear Sovereign Investor Subscriber,

Take a good, long look at that flat screen TV on your wall and enjoy it while you can … because it's already obsolete.

Back in the spring of 2011, I began following a disruptive technology that was primed to change the world. At the time, there was no mention of it in the mass media. In fact, this development was little-known outside of industry insiders. I found it while traveling through South Korea and meeting with some of my contacts there.

Today, it has begun to revolutionize how we see the world …


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Two years ago, I wrote about organic light-emitting diode (OLED) technology, which allows for electronic displays so thin and flexible, that you can bend and roll them up like a poster. This segment of the tech sector is one which every savvy investor should closely track, as the potential I saw in 2011 is now becoming realized at the starting point of a burgeoning product development cycle.

Instead of running down to Best Buy to purchase a 50-inch TV, you'll soon be able to buy televisions by the square yard to cover an entire wall, providing an IMAX-like experience. The screens will be transparent, so when the TV is off, you'd see what's behind it, be that a wall, a painting or even the window looking out over the backyard.

The technology isn't just about TVs, however. OLED is primed to radically change everything you know as normal in the world of displays, from laptops and billboards to street signs and car windshields … even greeting cards will one day incorporate OLED displays that will allow you to record a video greeting. And the future is now, as South Korean electronics giant LG is releasing flexible OLED televisions and smartphones by the end of this year, with competitors such as Samsung and Sony hot on its heels. Rumors are already swirling about an iPhone built around a curvilinear OLED display.

As the digital revolution expands into emerging markets, the demand for this technology will only increase. And the market is still at its earliest stages, with growth projected to climb from $4.9 billion in 2012 to $25.9 billion in 2018.

Because of what I saw coming two years ago, I specifically arranged to meet in 2011 with a mid-cap technology company in San Diego called, Cymer Inc. Based on its technologies, I knew Cymer would prove to be a crucial player in creating the machines that make OLED technology possible. I spent time with company's executives, chatted about OLED's future, the challenges of manufacturing the silicon substrates necessary for OLED, and the demand growth likely to build as OLED began to emerge on a broad scale. I left that meeting absolutely convinced that Cymer was a fabulous, early play in the sector … and we benefited when we closed the position with a fast 44% gain after a buyout offer from ASML Holding N.V.

OLED displays are only now at the beginning of their growth cycle, yet to reach a broader market that will stretch well behind the obvious consumer-electronic products. With OLED displays still in the early stages of production, price points are simply too high at the moment for the masses to obtain this new tech.

But the tipping point is very near.

As with any new technology, the costs of production will eventually decline because of economies of scale. Retail prices will plunge and the mass market will rush in to adopt the technology as the next great innovation.

Despite being an American invention discovered in 1987 by Eastman Kodak, OLED technology is now dominated by Korean companies like LG and Samsung. Firms in Japan, Taiwan and China are emerging as major players, too. And that's why I relentlessly search the world when looking for the best profits opportunities.

While a small company like Cymer in Southern California has already won big in the OLED sector, there are still many ways to cash in on this technology by keeping a global view.

Until next time, stay Sovereign …

Jeff D. Opdyke

Editor's Note: Editor's Note: We've planned an exclusive event to show you step-by-step how to get off-the-grid, protect your assets, and potentially even make a small fortune from investments that can grow even as the American economy unravels. This could be your last chance to learn strategies to grow and protect your assets as the great American decline accelerates. Register Now.

Related Reading:

For investors who read the document, it's a roadmap to profits.

NBC and the Times are just now picking up on the bee story, but Jeff Opdyke has been telling people about the plight of the honey bee for a while now, he calls it the "AGpocalypse" because of the outsized impact tiny bees have on the world's food crops. Many think it's not a very big deal. In America alone, the U.S. Department of Agriculture reports that bees are responsible for $15 billion in increased crop value each year.

TODAY'S EDITOR

Jeff D. Opdyke

today's editorFor his Emerging Market Strategist subscribers, Jeff is always looking for companies in position to benefit from the rise of a growing global middle class.
Click here for his latest video
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