Two Fast-Growing Trends That Are Ripe for Investing Right Now
Good news: I’m officially done with my warnings about the excessive hype surrounding the 3-D printing industry and the stocks within it.
It’s now time to reveal the opportunities in this growing area that are ripe for investing. (I can hear thousands of “Amens” echoing in cyberspace!)
But here’s the critical difference: While both are related to 3-D printing, they’re not overhyped.
On the contrary, in fact.
Market interest and, most importantly, the investment potential are just heating up. So let’s dive in…
The Next Stage in the 3-D Printing Revolution: Bioprinting
Who needs ordinary 3-D printing, when we’ve got the promise of 3-D bioprinting?
Instead of printing various consumer products, this cutting-edge technology involves printing actual human cells, which can then be used for drug discovery and development, as well as biological research.
Eventually, scientists believe we’ll be able to “bioprint” organs for transplant.
In fact, researchers in Scotland just unveiled a tremendous leap forward in the process…
In this month’s issue of the journal Biofabrication, a team of researchers from Heriot-Watt University revealed that they’ve developed a 3-D printer capable of printing human embryonic stem cells.
Why is this so groundbreaking?
Well, as you may know, embryonic stem cells hold the most promise because of their ability to develop into almost any type of tissue. Previously, it had only been possible to 3-D print human mesenchymal stem cells, which can only develop into a limited number of cell types (like bone, cartilage and fat).
Confused? Don’t worry. Here’s all you need to know…
Researchers just made a major breakthrough on the path to printing “organs for transplant on demand, without the need for donation and without the problems of immune suppression and potential organ rejection,” according to Jason King, Business Development Manager at the Roslin Cellab BioCentre – a stem cell technology company in Edinburgh.
The only problem?
It’s going to be about 10 years before bioprinted organs become even remotely possible, according to Shaochen Chen, Professor of Nanoengineering at the University of California, San Diego.
Now when it comes to scientific development, that’s no time at all. But from an investment standpoint, that’s an eternity.
Fear not, though. Bioprinting holds significant investment potential right now, too.
The Bioprinting Trailblazer
Drug companies spend upwards of $31 billion per year on research and development, with the bulk of the costs going toward clinical trials.
And since industry pioneers can already print simple tissues like skin, heart patches and blood vessels, there are plenty of opportunities to sell the technology to pharmaceutical companies and academic institutions for drug testing.
The use of 3-D printed tissues could greatly reduce these costs and time to market, too.
So how do we play the trend? With the industry pioneer – San Diego-based Organovo Holdings (ONVO).
I’ve been tracking the company since 2011, when it was still privately held. But that was never going to last. Not given the enormous upside market potential, plus the fact that Organovo had already developed the first commercial 3-D bioprinter – the NovoGen MMX.
In February 2012, Organovo went public via a reverse merger. Then, in October 2012, I officially recommended the stock to WSD Insider subscribers.
You bet. Subscribers have more than doubled their money already.
But I’m not telling you this to brag. I’m telling you because Organovo’s future profit potential is still so high, I believe shares could double again from current levels.
Because as the first company to create a commercial 3-D bioprinter, Organovo boasts a big first-mover advantage. And first-movers always possess the most upside potential.
There are two other big attractions, too: First, the company owns a strong and growing intellectual property portfolio. And second, it’s a natural takeover target for cash-heavy, blue-chip pharmaceutical companies.
That’s why I told subscribers to only sell half of their positions. That way, we take profits when they exist (never a bad thing!) and are still positioned to profit from additional upside.
And my advice for how to use the profits?
I recommended investing them in the next breakout technology trend…
From 3-D Bioprinting to 3-D Scanning
3-D scanning is essentially 3-D printing in reverse.
Whereas 3-D printing takes a digital file and “prints” a tangible model, 3-D scanning basically “x-rays” the geometry of a real-world object or environment. It collects the data and creates a digital model of the object’s shape and color.
It’s deadly accurate, too – down to 15 microns, to be exact. (By comparison, a human red blood cell is about five microns in diameter.)
More importantly, it’s a $3-billion to $5-billion industry – one that’s about to enjoy a huge demand surge.
Don’t believe me?
I’ll let an insider explain: “Advances in the areas of hardware, software, improved workflow, and ease-of-use have lowered project and operational costs which expands the applications for 3-D laser scanning,” according to Ralph Rio, Research Director at ARC Advisory Group.
Translation: The technology keeps improving and costs keep declining.
That’s precisely what triggered the rampant interest and hypergrowth for 3-D printers. And 3-D scanners are headed the same way.
There’s a way to play this fast-growing trend, too
For all the details on why the stage is set for much more growth in this area – and get the name of the top innovator in the field – just sign up for a risk-free trial to WSD Insider.
If the stock performs anything like Organovo – and I expect it to – we’ll be onto another big winner.
Ahead of the tape,