Data Analytics Gaining Traction · One of the rising technology sectors is data analytics. Today,...

12
11/05/2017 COMPANIES MENTIONED Analytixinsight Inc. Helios and Matheson Analytics Inc. Streetwise Reports LLC 101 Second St., Suite 110 Petaluma, CA 94952 Tel.: (707) 981-8999 Fax: (707) 773-5020 [email protected] STREETWISE REPORTS THE ENERGY REPORT THE GOLD REPORT THE LIFE SCIENCES REPORT Ron Struthers of Struthers' Resource Stock Report delves into two rapidly growing data analytic companies. Source: Ron Struthers for Streetwise Reports One of the rising technology sectors is data analytics. Today, everything is tracked, measured and recorded resulting in massive data bases. The total number of data centers around the world will peak at 8.6 million in 2017, and then begin a slow decline, predicts IDC. But this means the big will get bigger and the smaller ones disappear as growth continues. Worldwide data center space will continue to increase, growing from 1.58 billion square feet in 2013 to 1.94 billion square feet in 2018. Data analytics refers to qualitative and quantitative techniques and processes used to enhance productivity and business gain. Data is extracted and categorized to identify and analyze behavioral data and patterns, and techniques vary according to organizational requirements. I am very familiar with this as it was my job for a number of years at IBM as a systems and business analyst. At that time computers were not as powerful and there was fewer databases but no doubt IBM was a pioneer here. I had access to the mainframe computers, the most powerful in the world, and wrote programs to analyze data, mostly IBM's inventory data in house or customer installed. Management would request a report or analysis on some aspect of inventory management to reduce costs, improve inventory turn-around or whatever. My masterpiece was a monthly report I created with about 5,000 to 7,000 lines of code that would report on various aspects of inventory at various locations across the country. I will not bore you with any more details of a past job, just that I have hands-on experience here. One such company I have began to follow in this space is: Helios and Matheson Analytics NASDAQ:HMNY Recent Price $9.92 Shares outstanding 7.1 million Fully diluted (1.9M RedZone note + 4M MoviePass + 6.5M convertible note) = 19.5 approximate Helios provides: intuitive artificial intelligence predictive Big Data analytics data VISUALiZATION SOLUTION It provides data analytics in many sectors that include Government, Education, Retail, Healthcare and Financial. Its goal is to be the first mover and be disruptive, especially in consumer and big-data area. The company's focus has been crime predictive technology with its consumer RedZone map app. What moved it into the limelight the last couple months is a majority stake acquisition in MoviePass, a company started by a co-founder of Netflix, Mitch Lowe, who commented on Fox News: "People want to go to movies more often but price and risk of poor movie are high." Data Analytics Gaining Traction Streetwise Reports

Transcript of Data Analytics Gaining Traction · One of the rising technology sectors is data analytics. Today,...

Page 1: Data Analytics Gaining Traction · One of the rising technology sectors is data analytics. Today, everything is tracked, measured and recorded resulting in massive data bases. The

11/05/2017

COMPANIES MENTIONED

Analytixinsight Inc.

Helios and MathesonAnalytics Inc.

Streetwise Reports LLC101 Second St., Suite 110

Petaluma, CA 94952Tel.: (707) 981-8999Fax: (707) 773-5020

[email protected]

STREETWISE REPORTS

THE ENERGY REPORT

THE GOLD REPORT

THE LIFE SCIENCES REPORT

Ron Struthers of Struthers' Resource Stock Report delves into two rapidlygrowing data analytic companies.

Source: Ron Struthers for Streetwise Reports

One of the rising technology sectors is data analytics. Today, everything is tracked,measured and recorded resulting in massive data bases. The total number of datacenters around the world will peak at 8.6 million in 2017, and then begin a slowdecline, predicts IDC.

But this means the big will get bigger and the smaller ones disappear as growthcontinues. Worldwide data center space will continue to increase, growing from1.58 billion square feet in 2013 to 1.94 billion square feet in 2018.

Data analytics refers to qualitative and quantitative techniques and processes usedto enhance productivity and business gain. Data is extracted and categorized toidentify and analyze behavioral data and patterns, and techniques vary according toorganizational requirements.

I am very familiar with this as it was my job for a number of years at IBM as asystems and business analyst. At that time computers were not as powerful andthere was fewer databases but no doubt IBM was a pioneer here. I had access tothe mainframe computers, the most powerful in the world, and wrote programs toanalyze data, mostly IBM's inventory data in house or customer installed.Management would request a report or analysis on some aspect of inventorymanagement to reduce costs, improve inventory turn-around or whatever.

My masterpiece was a monthly report I created with about 5,000 to 7,000 lines ofcode that would report on various aspects of inventory at various locations acrossthe country. I will not bore you with any more details of a past job, just that I havehands-on experience here.

One such company I have began to follow in this space is:

Helios and Matheson Analytics NASDAQ:HMNY Recent Price $9.92Shares outstanding 7.1 millionFully diluted (1.9M RedZone note + 4M MoviePass + 6.5M convertible note) = 19.5approximate

Helios provides:

intuitive artificial intelligencepredictive Big Data analyticsdata VISUALiZATION SOLUTION

It provides data analytics in many sectors that include Government, Education,Retail, Healthcare and Financial. Its goal is to be the first mover and be disruptive,especially in consumer and big-data area.

The company's focus has been crime predictive technology with its consumerRedZone map app.

What moved it into the limelight the last couple months is a majority stakeacquisition in MoviePass, a company started by a co-founder of Netflix, Mitch Lowe,who commented on Fox News:

"People want to go to movies more often but price and risk of poor movie are high."

Data Analytics Gaining TractionStreetwise Reports

Page 2: Data Analytics Gaining Traction · One of the rising technology sectors is data analytics. Today, everything is tracked, measured and recorded resulting in massive data bases. The

In November 2016, Helios merged with Zone Technologies, Inc., a premier globalinformation technology company that is redefining the national predictive analyticspractice. Zone was maker of the RedZone crime and navigation map, a free app foryour smartphone.

RedZone Map offers one of the most sophisticated GPS-driven systems available tousers today, with enhanced personal safety being the primary mission behindZone's proprietary technology that incorporates social listening, artificialintelligence and big data.

Unlike Google Maps and Waze, RedZone Map is the first app that goes beyondnavigation to address personal safety, combining GPS-driven direction with real-time crime data and social listening. The app is in the top five in the Apple AppStore's U.S. navigation category, right behind Google Maps and Waze. Being theonly app offering a safe route vs. risky route, RedZone Map gives its users a choice.

Covering more than 1,250 cities in the U.S., the mapping format helps consumers tobe more aware of their surroundings, posting over half a million crimes committedjust during the last 60 days, including crime data from the last 24 hours. It pinpointsthe location of these crimes—shootings, assaults and thefts—benefiting userswhether they are navigating in their own neighborhoods or traveling, and the plan isto deploy this proprietary technology globally in short order.

On June 5 Helios announced the RedZone subsidiary acquired three U.S. patentsfrom Israel-based technology company Trendit Ltd. (TRIT.L UK Stock Exchange),among other assets. RedZone plans to integrate the patented technology with theRedZone Map™ app, in order to enable the app to track and analyze real-timecrowd behavior, migration and trends. The patented technology predicts populationbehavior, along with population size, origin and destination, with an accuracy rateof 85–90%, and tracks demographic segmentation of a population using apopulation sample of 15%, together with anonymous cellular signals anddemographic big data.

On July 26 the company announced Zone Intelligence™ that seeks to enhance thepersonal safety of its clientele using threat mapping, geospatial awareness,geofencing and alerts based on client proximity to terror, crime and other threats.Zone Intelligence™ will analyze the data collected in real-time, provide real-timethreat intelligence for both domestic and international travel, and advise clients onwhere and when to travel and when to leave.

This year it has also added Twitter to RedZone where it will process up to 80million tweets per day looking for criminal activity.

Helios also has advanced face-recognition technology. It basically analyzes a faceand converts it to a mathematical equation and then can look for matches to that

Page 3: Data Analytics Gaining Traction · One of the rising technology sectors is data analytics. Today, everything is tracked, measured and recorded resulting in massive data bases. The

equation. If you are out and about in a major city these days it would not beuncommon for you to be photographed 1,000 times.

On April 19 the company lauched the RedZone map for London and this is plannedas the start of a European roll out. In just the first week the app climbed to #3position in all navigational categories, behind Google map #1 and Waze #2.

Based on user reviews I have seen, RedZone should gain popularity and has seena lot of positive reviews, but it is still being refined and needs some tweaking toimprove user reliability.

I believe this could eventually rival Google maps and Helios could gain millions ofmonthly users.

MoviePass

On August 15 Helios entered into a definitive agreement to acquire a majority stakeof movie subscription technology company MoviePass Inc. Helios will pay $28.5million for a 53.71% stake in MoviePass. Helios has an option to increaseownership by another 8.7% by purchasing another $20 million in MoviePasscommon stock.

MoviePass is available in over 91% of all theaters in the U.S. This includes AMC,Regal and Cinemark theaters, along with independent theaters. The MoviePassapp enables subscribers to see unlimited movies in theaters with no blackout datesand no contracts, just a low flat $9.95 monthly fee.

MoviePass is led by Netflix co-founder and former Redbox president Mitch Lowe.Film marketing executive and producer Stacy Spikes co-founded MoviePass in2011. Early investors include True Ventures, AOL Ventures and Chris Kelly,MoviePass' largest investor and former Chief Privacy Officer of Facebook.

"MoviePass was founded to make it easier for passionate moviegoers and casualfans to see films the way they're meant to be seen—in the theater," said MitchLowe, CEO of MoviePass. "Our vision has always been to make the movie goingexperience more affordable and enjoyable for our subscribers. We are changing theway consumers think about going to the movies by making it possible to experiencea broader array of films—from the latest summer blockbuster to a criticallyacclaimed documentary—through a subscription model. Today's acquisition byHelios & Matheson is a huge step towards making our vision a reality by allowingus to introduce a new $9.95 nationwide subscription service that completelydisrupts the movie industry in the same way that Netflix and Redbox have done inyears past."

A 2016 independent report by Mather Economics found that MoviePass membersshowed a 100% increase in movie going. This includes a 50% increase in mid-week attendance and a 123% increase in concession revenues. In short, thesubscription trumps the pay-per-view approach, reducing its high customeracquisition cost to the MoviePass risk-free, contract-free model.

Following the announcement of the new MoviePass $9.95 per month subscriptionprice, during the six-day period from August 15, 2017 through August 20, 2017 (the"Measurement Period"), two theater chains that have partnerships with MoviePassreported outstanding attendance by MoviePass subscribers.

In one of the theater chains, during the Measurement Period, the number of theaterseats filled by MoviePass increased from 206 to approximately 4,137, representingan increase in excess of 2,000% as compared to the preceding seven-day period.In the other theater chain, during the Measurement Period, the number of theaterseats filled by MoviePass increased from 203 to approximately 1,795, representingan increase of approximately 884% as compared to the preceding seven-dayperiod.

In the first 30 days after announcing the $9.95 per month plan, monthly subscribersto MoviePass surged to 400,000 from 20,000 on August 14, 2017. As of October 18,

Page 4: Data Analytics Gaining Traction · One of the rising technology sectors is data analytics. Today, everything is tracked, measured and recorded resulting in massive data bases. The

2017, monthly subscribers has surpassed 600,000 and MoviePass is nowprojecting 3.1 million users by August 18, 2018.

Using the Helios and Matheson Analytics resources, MoviePass Inc. analyzesconsumer trends, patterns and activities to engage subscribers with movie relatedmerchandise, advertising and concessions relevant to their MoviePassexperiences. Helios and Matheson believes its technology stack combined with theMoviePass business model will transform the movie going experience and creategreat value for both companies.

How it works: Moviegoers use an App on their phone to select a movie while at ornear a theater and then use a MoviePass card issued to them when they sign up onthe MoviePass web site and it acts as a credit card to pay for the movie ticket at theKiosk.

Moviegoers pay $9.95 per month and can go to as many movies as they want. It islimited to only one movie per day and you cannot see the same movie twice. Youcannot view IMAX or 3D movies and cannot buy advance movie tickets. No matterhow you slice and dice, this is a very good deal for consumers. The key takeaway isit is now appealing to casual movie goers that are 71% of the market.

Financial

Last financials show $1.4 million in cash and revenues of $2.5 million in the first sixmonths of the year.

The number of shares outstanding is low as the company has been financingacquisitions with Convertible notes, most of the notes used to acquire RedZonewere convertible around $4.00 per share. The last of these converted in Septemberto approximately 1.9 M shares

To acquire MoviePass, Helios Issued approx. 4.0M shares to MoviePass andraised approximately $21M with a convertible note at $3.25 per share.

Summary

The average move ticket price is about $9.00 and MoviePass pays the theater thefull ticket price so it is a money-losing business. However Helios is in the businessof data analytics and as MoviePass subscribers sign up it creates a new data base.As Helios CEO Farnsworth said. "We're the only company out there that can tellcompanies exactly who and when people are going to the movies."

If MoviePass is able to prove that it can drive incremental box office revenue tostudios and cinemas, MoviePass CEO Lowe said the company can strike deals toshare in the revenue from those sales, as well as from concessions. That could thenlead to studios paying MoviePass to promote films to its users. MoviePass has

Page 5: Data Analytics Gaining Traction · One of the rising technology sectors is data analytics. Today, everything is tracked, measured and recorded resulting in massive data bases. The

experimented with this already and Farnsworth said 18% of users go to movieswhen prompted by the MoviePass app.

Farnsworth and Lowe said they want to partner with restaurants close to cinemasand possibly even with Uber to get users a ride to the theater. It's all aboutcapitalizing on a night out at the movies, Farnsworth said. There are many areas forrevenue streams.

With RedZone map the company probably has the largest crime data base in theworld. As it rolls out in Europe I expect it will gain a lot of new app users. BetweenRedZone Map and MoviePass, Helios should gather quite huge monthly activeuser base. It is always tricky to value companies at this early growth stage, but Ihave seen market valuations from $50 up to and as high as $600 per user.

Right now with just 7.1 million shares, the market cap is only about $70 million. Ibelieve some notes were converted adding about 1.9 million shares and if we add 4million shares for MoviePass acquisition, plus 6.5 million for convertible note weare at 19.5 million and a $195 million market cap. I believe this is very low.

I have not seen much on numbers for RedZone users but MoviePass is planning togo public in 2018 and Helios will own about 50% at that time. MoviePass will easilyhave 1 million subscribers by then and a value at 1/10 of Hulu, the smallestcomparison on chart previous page would mean a value of $580 million, whichHelios' 50% would be $290 million, well above the current valuation.

CEO interview from August, MoviePass video

Page 6: Data Analytics Gaining Traction · One of the rising technology sectors is data analytics. Today, everything is tracked, measured and recorded resulting in massive data bases. The

I believe the pull back from the $30 high provides a good entry point. Not a lot to goby in this chart but it does appear the stock is consolidating around $10.

Keep in mind that that this is a heavily shorted stock so I expect volatility. When astock has only 7 million shares and is trading over 20 million per day, you know forcertain there are piles of fake short volume and computer robot day trading. Ichecked Finra short report for Oct 11 and about 2/3 of volume was shorting. Shortvolume also reported on NY over half the volume.

For Oct 15, Short squeeze reports the float at 2,089,900 and an insane 83% is short.It claims 85% of the stock is owned by insiders, so a float of 2 million trading 20million per day is more insane, but this is the type of market we have now "in theage of the computer machine."

A good strategy might be to buy half your intended position now and average downif the stock drops further.

The stock market has been booming and so has market data and stock datacomputer analysis. Another data analytic company I have been following in Canadais set to capitalize on this and is still very cheap and under the radar:

Analytixinsight Inc. TSX.V:ALY Recent Price $0.25Shares outstanding 64 million Management/Insiders 25%

ALY has created an innovative big data analytics platform and technology enginethat processes large amounts of data, rule sets, analysis models, and logicalarguments to generate insights. The platform has narrative capabilities to autogenerate reports for ease of consumption by end users, as well as predictiveanalytics capabilities. While the current application of this engine is in the financialanalytics space, the platform and engine are applicable to other sectors and datasets. The company is considering opportunities to expand into the generation ofsocial media analytics, retail sector analytics, gaming, etc.—all of which can beserviced by the backbone platform with some amount of customization.

ALY's on-line portal CapitalCube algorithmically analyzes market price data andregulatory filings to create insightful, actionable narratives and research onapproximately 50,000 global companies and ETFs (exchange-traded funds),providing high-quality financial research and content for investors, informationproviders, finance portals and the media. AnalytixInsight holds a 49-per-centinterest in Marketwall, a mobile platform for banking and stock trading and owns

Page 7: Data Analytics Gaining Traction · One of the rising technology sectors is data analytics. Today, everything is tracked, measured and recorded resulting in massive data bases. The

Euclides,a workflow analytics systems integrator.

The company's product and technology platform is used to service bothCapitalCube and Marketwall. These entities, in turn, service a variety of customersacross both the individual and institutional segments. The company continues tobuild its individual and institutional customer bases across both its subsidiaries inthe financial analytics space.

Analytixsinsight has three market segments: CapitalCube and Euclides that arecontributing significant growing revenues while it has a 49% equity interest inMarketwall, a growing concern that could later been spun off or dealt in some kindof partnership. Let's look at each in more detail.

CapitalCube

CapitalCube provides analysis on stocks listed on all exchanges globally, and thusthe company continues to see an expansion in the geographic spread of itscustomers. For the individual business segment, in the near-term, the company'sefforts are focused on driving traffic and registrations for the retail online and mobilebusiness. CapitalCube's website provides a subscription service to individualcustomers—primarily retail investors, financial advisers and professional financialanalysts. CapitalCube's institutional partnerships with leading finance portals likeYahoo! Finance and the Wall Street Journal (www.wsj.com) have helped inincreasing awareness and driving additional traffic and conversions toCapitalCube's individual customer segment. CapitalCube is working on expandingthe scope of these partnerships and expects to benefit from additional traffic in thecoming quarters.

CapitalCube is currently averaging approximately two million user sessions permonth through various distribution channels. CapitalCube has begun customdelivery and integration of its content under its licensing partnership with Euronext,the leading stock exchange in the Eurozone. Under the terms of the partnership, thecompany's CapitalCube portal will deliver value added financial analysis andcontent, including key ratios and charts, on Euronext-listed companies to Euronext'swebsite and mobile apps. Euronext will also market and sell CapitalCube'sprofessional subscription licenses to various brokers, financial institutions andlisted corporations in Europe.

This slide from its presentation is a good summary of CapitalCube

CapitalCube also does Predictive Analysis and forecasting:

Page 8: Data Analytics Gaining Traction · One of the rising technology sectors is data analytics. Today, everything is tracked, measured and recorded resulting in massive data bases. The

with a 10 point condition test to predict likelihood of dividend cuts or increases

forecasts the probability of a share buybackability of a company to make acquisitions or to be acquiredunique performance score for fundamentals, earnings and dividends

Marketwall 49% interest is currently the other financial platform

Marketwall's customers are primarily institutional firms. Marketwall continues tobenefit from the branding and marketing support it receives from the partnershipwith Samsung, as well as other hardware manufacturers like MiiA and Netrange.These partnerships have significantly increased the number of downloads of theMarketwall App. These download catalysts and Marketwall's partnerships withleading financial data and news providers such as Morningstar, BATS, etc. haveprovided the ability to pursue institutional customer opportunities.

Marketwall currently has a five-year licensing and integration project with IntesaSanpaolo S.p.A ("Intesa Sanpaolo"), one of the leading financial institutions in theworld. As part of the project, Intesa Sanpaolo will incorporate Marketwall's mobilecapabilities with its existing product and service portfolios for its retail bankingcustomers. Intesa Sanpaolo is Italy's largest retail bank with over 4,000 branchesand a market capitalization of €40 billion; Marketwall is providing a custom versionof the app for Intesa Sanpaolo's 8 million stock-trading clients, to be rolled out in thefirst half of 2018.

Marketwall derives revenues from subscription fees, licensing fees, advertising anddevelopment work. The company has also seen interest from leading financialservices companies to partner on potential new business opportunities in the B2Bsegment—including incorporating trade execution and payments. It compares tosome platforms you might be familiar with like Scotia iTrade or TD Greenline.

Marketwall's revenue for the second quarter of 2017 was $1,850,497, comparedwith $283,766 in the same period in the previous year. Marketwall recorded strongrevenues after reaching an invoicing milestone on its contract with IntesaSanpaolo's mobile banking division. The company and Intesa Sanpaolo expect tospin out Marketwall following the completion of Marketwall's product integrationwithin Intesa Sanpaolo's mobile platform. The completion of this integration isexpected during the second half of 2017, and is expected to result in the migrationof over eight million retail banking customers of Intesa Sanpaolo to Marketwall.

Marketwall uses CapitalCube analytics within its mobile app.

Page 9: Data Analytics Gaining Traction · One of the rising technology sectors is data analytics. Today, everything is tracked, measured and recorded resulting in massive data bases. The

Euclides Technologies

In first quarter 2017 ALY completed the previously announced acquisition of certainassets of Euclides. Euclides is an expert systems integrator and consulting partnerfor field service management solutions and has touch points to over 100,000 fieldservice personnel. Euclides was founded in 2006 by three senior veterans ofClickSoftware, a premier Field Service solutions vendor. Headquartered inCambridge, Massachusetts, Euclides operates globally, serving clients in NorthAmerica, South America, Europe, Asia and Australia.

AnalytixInsight's machine learning platform and artificial intelligence capabilitiesare well suited to serve today's analytics and scheduling requirements within thefield service management (FSM) industry. The FSM industry is being shaped bytrends such as the Internet of Things, which generates data, and workflow analyticstools that can deliver predictive analytics, enhanced auto-scheduling, improvedwork order management and skills-based dispatching.

You would recognize many of its customers names, like Liberty Mutual, Best Buy,AltaGas, Xerox, Siemens and Pacific Gas and Electric, among others.

You can get a further idea what this does if you review the case study for Best Buy.

The order backlog continues to grow and currently stands at approximately $3million, which is on track with expectations.

Financial

Last financials for Q2 2017 reported end of August show $549,665 cash and nolong-term debt.

The company's revenue for Q2 (excluding Marketwall) was the highest in thecompany's history at $967,946, which is more than triple the revenue during thesame period in the previous year of $302,235, and 289% over first quarter revenuesof $334,418. Marketwall's revenue for the quarter was the highest in Marketwall'shistory at $1,850,497, a six-fold increase when compared with $283,766 in thesame period in the previous year.

Revenue for the first six months was $1.3 million with $967k of that in the secondquarter. The six month revenue is about 160% growth over the same period in2016. This does not include revenue factored in with Marketwall, but with thoseequity gains the Q2 financials show ALY is basically break even.

Summary

ALY has been trading for just about five years and with most start ups and smalltech companies it takes time to move from development, implementation andrevenue growth, but ALY seems to be coming into its own now with an excellentplatform of products.

Its market cap or valuation is only $16 million and using the Q2 revenue numbersand assuming no growth, its annual revenue run rate is about $3.6 million.Assuming just conservative growth we could be around $5 million at year-end,especially since Eucilides is just starting to kick in with Q2 numbers. Tradingaround 3 times revenue, the stock is not real cheap but not expensive.

Check these samples of CapitalCube analysis:

CapitalCube sample of analysis on Apple's Dividend

CapitalCube sample of earnings analysis Fortis Inc.: CapitalCube gave a veryfavorable analysis on earnings potential on September 20, since then the stock hasrallied significantly, I expect in anticipation of good earnings report on November 3.

What could drive the stock price more so than revenue is user growth. There arearound 2 million users sessions per month at CapitalCube and this will continue togrow.

Page 10: Data Analytics Gaining Traction · One of the rising technology sectors is data analytics. Today, everything is tracked, measured and recorded resulting in massive data bases. The

End of August the company announced an agreement with a leading African mediaand financial group to jointly create and launch an online platform for African equitymarkets. Over the past decade, African equity markets have produced above-average returns in emerging markets, but the overwhelming concern for investorscontinues to be data availability, quality, logistics and liquidity. A joint productoffering between AnalytixInsight and Ai, with a Pan-African reach, will enableinstitutional investors, high-net-worth and retail investors to increase exposure tothese markets.

The joint offering platform will provide investors with data driven insights to evaluateand capitalize on opportunities offered within the African capital markets. Theplatform will be a premier source of financial data and analysis for 16 Africanexchanges, covering over 1,000 African equities, with an objective of providingdomestic and offshore investors easy access to multiple African capital markets.

This should start to add growth in Q4 2017 and more so in 2018

You never know what catalyst could provide a surge in users and a much highervaluation on the stock. We saw what happened with Helios above when it movedits data platform in to aid a popular program like MoviePass. Helios went from $3 to$30, a ten-fold increase.

Another way to see the value in ALY is when compared to Helios that has US$195million market cap. ALY is around US$13 million, a small fraction the value ofHelios.

I believe a good way to have exposure to this sector is own both stocks. On the ALYchart, the stock broke out through resistance around 25 cents and has now comeback to that level which should now act as support and provides a very good entryprice.

This article came out as I was finishing this letter and is worth a read, the computersare taking over.

Rise of the machines: Canada's first AI-run ETF set to hit the market

Portfolio management duties are now being handed over to robots as Canada's firstartificial intelligence (AI) exchange-traded fund hits the market on Nov. 1.

With the ticker MIND, Horizons ETFs Management (Canada) Inc. is set to launchthe Horizons Active A.I. Global Equity ETF—an actively managed investmentstrategy entirely run by an AI system that extracts patterns from analyzing data.

Page 11: Data Analytics Gaining Traction · One of the rising technology sectors is data analytics. Today, everything is tracked, measured and recorded resulting in massive data bases. The

MIND is able to evaluate and narrow down an investment base of 32 global equityETFs to between five to 20 ETFs it will invest in. With a management fee of 0.55%,the ETF uses technology that is able to support algorithms that can gatherinformation and analyze enormous data sets to solve problems.

Designed by Qraft Technologies, a financial technology firm based in South Korea,the initial framework of the AI programming monitors more than 50 investmentmetrics including money flow, six-month relative performance, 90-day volatility, betaand 80-day simple moving average.

Ron Struthers founded Struthers' Resource Stock Report 23 years ago. The reportcovers senior and junior companies with ample trading liquidity. He started hisMillennium Index of dividend stocks in 2003 - $1,000 invested then was worth over$4,000 end of 2014 and the index returned 26.8% in 2016. He retired from IBM after30 years in customer service, systems and business analyst, also developing hisown charting software. He has expertise in junior start-ups and was a co-founder ofParamount Gold and Silver.

Want to read more Streetwise Reports articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list ofrecent articles and interviews with industry analysts and commentators, visit ourStreetwise Interviews page.

Disclosure: 1) Ron Struthers: I, or members of my immediate household or family, own shares ofthe following companies mentioned in this article: I currently own 10,000 shares ofALY. I personally am, or members of my immediate household or family are, paid bythe following companies mentioned in this article: None. My company currently hasa financial relationship with the following companies mentioned in this article:None. I determined which companies would be included in this article based on myresearch and understanding of the sector.2) The following companies mentioned in this article are sponsors of StreetwiseReports: None. Streetwise Reports does not accept stock in exchange for itsservices. Click here for important disclosures about sponsor fees. The informationprovided above is for informational purposes only and is not a recommendation tobuy or sell any security.3) Statements and opinions expressed are the opinions of the author and not ofStreetwise Reports or its officers. The author is wholly responsible for the validity ofthe statements. The author was not paid by Streetwise Reports for this article.Streetwise Reports was not paid by the author to publish or syndicate this article.4) This article does not constitute investment advice. Each reader is encouraged toconsult with his or her individual financial professional and any action a readertakes as a result of information presented here is his or her own responsibility. Byopening this page, each reader accepts and agrees to Streetwise Reports' terms ofuse and full legal disclaimer. This article is not a solicitation for investment.Streetwise Reports does not render general or specific investment advice and theinformation on Streetwise Reports should not be considered a recommendation tobuy or sell any security. Streetwise Reports does not endorse or recommend thebusiness, products, services or securities of any company mentioned on StreetwiseReports.5) From time to time, Streetwise Reports LLC and its directors, officers, employeesor members of their families, as well as persons interviewed for articles andinterviews on the site, may have a long or short position in securities mentioned.Directors, officers, employees or members of their immediate families are prohibitedfrom making purchases and/or sales of those securities in the open market orotherwise from the time of the interview or the decision to write an article, until oneweek after the publication of the interview or article.

Struther's Resource Stock Report Disclaimer:All forecasts and recommendations are based on opinion. Markets change directionwith consensus beliefs, which may change at any time and without notice. Theauthor/publisher of this publication has taken every precaution to provide the mostaccurate information possible. The information & data were obtained from sources

Page 12: Data Analytics Gaining Traction · One of the rising technology sectors is data analytics. Today, everything is tracked, measured and recorded resulting in massive data bases. The

believed to be reliable, but because the information & data source are beyond theauthor's control, no representation or guarantee is made that it is complete oraccurate. The reader accepts information on the condition that errors or omissionsshall not be made the basis for any claim, demand or cause for action. Because ofthe ever-changing nature of information & statistics the author/publisher stronglyencourages the reader to communicate directly with the company and/or with theirpersonal investment adviser to obtain up to date information. Past results are notnecessarily indicative of future results. Any statements non-factual in natureconstitute only current opinions, which are subject to change. The author/publishermay or may not have a position in the securities and/or options relating thereto, &may make purchases and/or sales of these securities relating thereto from time totime in the open market or otherwise. Neither the information, nor opinionsexpressed, shall be construed as a solicitation to buy or sell any stock, futures oroptions contract mentioned herein. The author/publisher of this letter is not aqualified financial adviser & is not acting as such in this publication.

Copyright 2017, Struther's Resource Stock Report

Charts and images provided by the author.

If you would like to comment on the content of this article or any of the companiesdiscussed in this article, or if you would like to be interviewed by StreetwiseReports, please contact GORDON Holmes of Streetwise Reports [email protected], 707-481-1410.

Streetwise Reports : The Gold Report : The Energy Report : The Life Sciences Report

IMPORTANT DISCLOSURES

The Gold Report, The Energy Report, The Life Sciences Report and Streetwise Reports do not render general or specific investment advice and donot endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.

From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed forarticles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the openmarket or otherwise.

Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

Streetwise Reports LLC receives a fee from companies that are listed on the home page in the "Learn More About Companies in this Issue" section.Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

OTHER DISCLOSURES

Streetwise - The Gold Report, The Energy Report, The Life Sciences Report and Streetwise Reports are Copyright © 2017 by Streetwise ReportsLLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only inwhole (and always including this disclaimer), but (ii) never in part.