Hidden Gem Alert!
This Micro-Cap Could Light Up
Special Report prepared by
Hidden Gem Alert: This Micro-Cap Could Light Up Portfolios
Apologies for even using the phrase “hidden gem.” It’s easily one of the most abused and overused terms in the investment lexicon, but every once in a while, a small company comes along that really does merit the “hidden gem” designation.
This hidden gem is Oryon Technologies, Inc. (OTCQB: ORYN).
For now, Texas-based Oryon Technologies isn’t popping up on a lot of investors’ screens and that’s OK. After all, gems are no longer hidden after the Wall Street crowd and the latecomers come piling into a stock.
That’s when the early, smart investors just sit back and let the Johnny-Come-Latelies throw money at a stock, running the share price higher in the process.
Existing Market Applications and Really Big Markets
Oryon Technologies is a developer and manufacturer of innovative next-generation thin film, flexible, crushable, water resistant and wearable “ELastoLite” lighting technology. On the surface, that may not sound like the most lucrative market to be in. By no means is this company making the next iPhone or next hot social media Web site.
Not being the next Apple (Nasdaq: AAPL) or Facebook doesn’t matter here because there is a
legitimate bull case for Oryon that is growing as we speak.
The company’s ELastoLite technology enables thin, flexible, crushable, water-resistant lighting
systems to be incorporated into multiple applications such as safety apparel, sporting goods, consumer goods and membrane switches, among others.
Straight from the company’s mouth to investors’ ears:
“Within Oryon’s target textile markets alone, billions of units are shipped each year. The market includes outerwear, industrial safety, municipal safety, military, athletic apparel, men’s, women’s and children’s clothing, shoes and gear. These markets generate over $250 billion annual revenues and are second in size only to the food industry.”
What makes Oryon Technologies, at the very least, an interesting investment option at this point is that it has multiple existing markets where its products are truly relevant.
Here’s a key point to consider: Many of history’s most successful and most disruptive new products and technologies had to either make a small, niche market larger or almost create a new market right out of thin air.
Oryon doesn’t have to engage in either of those slow developing scenarios.
“Disruptive technology,” like hidden gem, is another overused Wall Street buzz phrase. It’s really something the so-called experts and talking heads in the mainstream financial press say to grab someone’s attention. For every 100 companies out there that someone has said have disruptive technologies, it’s probably only true in 20 of those examples. Maybe less.
A long time ago, the light bulb was disruptive technology. Then the automobile. Then color television. Then the semiconductor. Then the mobile phone. Then the smartphone. You see where we’re going with this, don’t you?
Disruptive technologies are real, legitimate game-changers and Oryon’s electroluminescent light (EL) is already proving to be just that.
Oryon has noted that in the past, most EL was printed on a semi-rigid polyester sheet. It would fail if it was creased and it was not very tolerant of moisture. This EL is a foldable, washable, moldable, polyurethane envelope.
The new EL generation can be used on jackets, shoes and other clothing for lighting that is flexible and washable, inside a children’s blanket to serve as a night light that feels soft and flexible, on the inside liner of a purse to make it easy to find keys or on an umbrella so you can walk the dog at night in the rain if need be.
Not to mention, Oryon Technologies is the company with the technology behind the keypad light
source in over 125 million cell phones. That alone would be a feather in the cap of most small
companies, but the case for Oryon starts, not ends, there.
A Hard To Beat Client Roster
All things considered, it would be more than fair to report that for a company the size of Oryon Technologies to be able to say its light source is in over 125 million mobile phones is downright impressive. It is, but as we just said, that deal isn’t the end of the Oryon bull case.
Arguably, it’s just the beginning of a bull run in this stock.
The company’s ELastoLite was used in the blockbuster Walt Disney (NYSE: DIS) film “Tron
Legacy.” That same technology has been used on Nike (NYSE: NKE) athletic apparel. Undeniably, that’s an impressive duo of clients for a small company and that means the company, in this case Oryon Technologies, has deep-pocketed customers that could help the company go from unknown micro-cap to the next hot small-cap and well beyond.
In addition to Nike and Walt Disney, Oryon said it’s working with several Fortune 500 specialty
apparel, sporting goods and safety product companies to possibly see its lighting technology used in the production of scores of new, innovative products.
Oryn’s Intellectual Property Could Be The Big Value Driver
What’s even more impressive than having supplied its technology to Disney and Nike is Oryon’s war chest of patents. The company’s technologies are protected by over 65 patents issued or pending worldwide. For those not in the know about patents and intellectual property in the technology universe, they’re a big deal.
Earlier this year, Microsoft (Nasdaq: MSFT) paid over $1 billion for several patents belonging to AOL (NYSE: AOL). Microsoft proceeded to sell some of those patents to Facebook for $550 million. Google (Nasdaq: GOOG) and Oracle (Nasdaq: ORCL) are currently locked in a patent battle that could eventually cost one of the companies a nine- or 10-figure settlement.
Beyond all that good news, Oryon said it’s currently in talks with several international brands for future product introductions. Alone the high-end athletic apparel market could prove to be Oryon’s bread and butter going forward. Beyond the relationship with Nike, the company has supplied its products to Adidas, Puma and Under Armour (NYSE: UA).
As the company said, “Oryon’s patented technology brings significant benefit to a wide range of
product categories and industries. Proper licensing of this technology will ultimately serve to continue further development and market penetration of the ELastoLite technology.”
Translation: Expect more big things in the future from Oryon, and its stock.
Buy the Future Right Now
Let’s be honest. Most investors, even the most successful ones, have a stock they let pass them by years ago that turned into a ten-bagger, maybe more. Over the past few years, that stock has been Apple. A generation ago, it was Wal-Mart (NYSE: WMT) and before that it was Coca-Cola (NYSE: KO) and some others. And, these really smart, astute investors think back and ask themselves…why?
What I’m getting at is Oryon Technologies has ten-bagger, epic growth story potential and you don’t have to pay up front for that potential. At least, not at the moment.
Working with the likes of Disney, Nike, Lands End, and others that are hinted at, but not officially announced… Oryon Technologies and its stock (ORYN) have all the makings of a Hollywood ending for investors.
Consider this: Oryon is clearly making a product and providing a technology that companies need, but large, cash-rich companies such as Disney, Nike and others may not want to keep paying for ELastoLite year after year.
Rather than do that, they could easily opt to buy Oryon outright. If that were to happen, ten-bagger might be the conservative estimate for what the stock could deliver to savvy investors.
Frankly, it’s good news for investors that when we talk about Oryon’s shares we’re not talking about the traditional hot tech or Internet stock with some typically over-rated, hard-to-access IPO.
You see, Oryon is already publicly traded and despite a recent pop in share price, the valuation is
compelling and Oryon’s market cap still hasn’t hit the $40 million area.
Source: Big Charts-MarketWatch
From this day forward, my analysis shows that ORYN holds 10 to 30-fold profit potential, especially if you are among the first shareholders. And since ORYN just recently went public, buying ORYN now, before it finds broad market appeal, could pay the highest rate of return.
The reality is that Oryon’s notoriety from the mobile phone deal is probably worth a quarter or more of its current market value. Chances are some of Oryon’s patents are worth many times the current market cap. No matter how you slice it, a sum-of-the-parts analysis of Oryon Technologies winds up screaming that this stock is a steal at its recent price and valuation.
For the moment, let’s assume a “worst case scenario” and say that Oryon only finds a foothold in the apparel industry. Just as a reminder, that wouldn’t be so bad. From the Oryon website:
“Within the target textile markets, approximately 7 billion units are shipped each year. This includes outerwear, industrial safety, municipal safety, military, athletic apparel, men’s, women’s and children’s clothing, toys, footwear, sports gear and clothing accessories. These markets generate over $250 billion annually and are second only in size to the food industry.”
By operating in an industry with over $250 billion in annual revenue, Oryon only needs to capture a microscopic slice of that pie to command a much larger market cap than it currently sports.
Even if Oryon can only capture $250 million of that $250 billion, just one tenth of one percent, that would send the stock soaring while still leaving plenty of room for growth.
Another fact that cannot be overlooked regarding Oryon’s bull case is the following:
Unlike so many flashy, newly public companies, Oryon makes a real product that is already serving real demand from real, legitimate Fortune 500 customers. There is little competition in this arena and Oryon’s 65 patents provide a significant barrier to competition and virtually insure rivals cannot just copy ELastoLite at their leisure.
However…let’s just stick with a conservative scenario:
Buy 2,500 shares of Oryon Technologies today, a stake that will cost you significantly less than $3,500 and your profits on this one could be north of $20,000 within the next 12-15 months.
Talk about lighting up your portfolio…ORYN just might be the one for you, if you don’t let this opportunity “pass you by!”
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