Most developed countries like the US treat pets like children. The global pet care is following suit and is responsible for hundreds of billions of dollars in growth and investment. Our new featured company, Dogness International, Inc. (Nasdaq: DOGZ $0.00 – website) is not only grabbing market share in Asia, but is positioning itself to be a strong competitor in the multi-hundred billion dollar global pet care products industry.
We are also seeing strong competition between players such as Google, Amazon and Apple in the MedTech industry. This is where they are making MEANINGFUL INVESTMENTS into progressive innovations in tracking, predicting and prescribing medical therapies for game changing recovery results and overall health maintenance. And we believe our other Featured Company, Kelvin Medical, Inc. (Nasdaq: KVMD $0.00) is on the brink of success and poised for hyper-growth.
Both opportunities present a positive “Win-Win” scenario that doesn’t happen often, but when it does (whereby all of the stakeholders are aligned) it’s MAGIC because of the BIG IMPACT on the adoption and usage of the companies’ products and services – thus yielding, GROWING REVENUES.
We’re excited to dive into our investment analysis and share these exciting investment ideas with you. First, we’ll review our research for Dogness International, Inc. (Nasdaq: DOGZ $0.00); then pour over our findings for Kelvin Medical… let’s get started.
We as a society LOVE our PETS, with a specific emphasis on dogs and cats.
I mean, who can’t live without “man’s best friend?”
Pets have ingratiated themselves so much into the fabric of our lives that most people consider their dogs and cats as extended family members… and many treat them as children.
And to further that thought, many SPEND AS MUCH MONEY on their PETS as they do on their own CHILDREN… or EVEN MORE!
The World has Gone to the Dogs (and cats)
Remember that it wasn’t too long ago that in the United States, dogs WERE NOT allowed in restaurants, bars, malls, movie theatres, planes, and other common areas that were solely for people.
It was so taboo to even consider bringing a pet into many of these establishments.
At the time, only service dogs were acceptable and allowed in. Most dogs and cats were restricted access unless it was a designated pet-friendly area.
And then… PARIS HILTON changed all that.
Yep… THAT Paris Hilton.
We believe that one of the most defining moments in the “pets rights movement” was when Paris Hilton, who along with her friends like Nicole Ritchie, Kim Kardashian, and other young Hollywood starlets, made it fashionable to carry small little dogs with them in their handbags… for companionship. They made it trendy to carry around your small little dog in your purse.
They then influenced Hollywood who got on the “dogs-are-companions” trend train. Movies started to come out that featured small little dogs as key companions and co-stars to their human counterparts.
Although the 1957 classic hit “Old Yeller” is still considered one of the quintessential “man’s best friend’s movies,” it wasn’t until the early 2000’s did Hollywood really make pets an important character in movie plots.
Movies like Legally Blonde, where Reese Witherspoon and her sassy Chihuahua, Bruiser Woods, were featured together really contributed to making dogs hip, personable… and acceptable.
And before you know it, dogs became a “status symbol” of cool.
It wasn’t long before you started seeing big muscle bound men carrying little Chihuahuas around town.
Empty nesters and senior citizens saw dogs and cats as adorable companions to help fulfill a void in their lives.
Then young couples openly discussed adopting dogs instead of having kids.
Society not only embraced men’s best friend, it gave it a big bear hug.
It’s a DOG-GONE GREAT TIME for the pet care industry
As a result, the pet care industry has continued to expand. Food and pet care companies have all reaped huge gains.
General Mills’ acquisition of Blue Buffalo for $8 BILLION in CASH in February of this year was quite a MILESTONE ACQUISITION for the pet care industry.
Many believe that the acquisition highlights the attractiveness of the pet care industry to mainstream companies, and that on-going innovation and growth opportunities will continue to attract buyers and investors seeking to grab a share of the industry.
According to a Grandview Research March 2018 article, the global pet care market is forecasted to reach $206.6 BILLION by 2025. That’s over 53% in market growth from an estimated $131.7 Billion in 2016.
So what’s driving this growth you ask?
Increase in disposable income in emerging countries like China and India that are empowering global pet ownership
Increase in pet ownership by coveted demographics like Millenials; empty nesters and senior citizens; and young couples who are wanting to have pets instead of children.
Increase in ownership of dogs and cats because of the “health benefits” that are attributed to pet ownership
Growing demand for premium foods and natural & organic products
Advancements in technology that are supporting the training, maintenance and care of pets
Growth is supported by innovation, and innovation drives growth.
And from this synergistic relationship, come companies like Dogness (Nasdaq: DOGZ $0.00) who are the next big thing… ready to be discovered… and ready for investment.
Pet Industry fast follows Human Health Industry
As we’ve mentioned, pets are treated like children.
Thus, it makes total perfect sense that what’s good for humans, should also be good for pets.
As we look at trends and products that are contributing to growth in the pet industry, it’s easy to see how they’ve closely mimicked the same trends and products in the booming health and fitness industry.
From organic and premium foods to technology innovations that have inspired and transformed our lives, many of these developments have been copied and brought into the pet industry to transform the lives of our pets.
And the results have been widely accepted and embraced by pet owners. You only have to refer back to Blue Buffalo’s $8 Billion cash sale as validation of the value of a premium pet food brand.
According to Marketresearch.com, technology has not only changed how many consumers purchase pet products, it’s also changing the type of pet products available on the market. With the on-going innovation and adoption of the “Internet of Things (IOT),” smart devices are transforming pet care in new and meaningful ways.
As a result, Pet Tech has been identified as one of the top four pet industry trends to watch in 2018 and beyond.
For example, similar to what Fitbit has done for human health tracking and monitoring, products like FitBark and Tractive allow pet owners to track their pet’s physical activity, location, and health metrics with pet wearables. Grand View Research estimated the global pet wearable market size was at $1.07 Billion in 2016
Other innovations include Internet-connected smart devices that help pet owners to engage with their pets via Skype-like connections and dispense food while away from home.
In our research in looking at potential investment opportunities, it’s been very clear to us that the pet industry has continued to “fast follow” the health and fitness industry by quickly copying what’s worked for humans and applied them to pets.
Who let the Dog(ness) Out?
As we research the pet care industry to identify hidden gems and the next big thing, we identified Dogness International, Inc. (Nasdaq: DOGZ $0.00) as a company that has the makings for a big hit.
Dogness was born in 2003 from the belief that pet dogs and cats are important, well-loved family members.
Dogness has us “woofing and howling” (pun intended) at what they’re doing, and we believe that it’s just the beginning.
Here are some key reasons why we believe Dogness International, Inc. (Nasdaq: DOGZ $0.00) has the making for a dog-gone (yeah, we just can’t help ourselves) great story:
Manufacturer of fashionable and functional pet care products
Intellectual property portfolio
Vertically integrated manufacturer
Established Asia sales footprint with global growth
Proven financial growth
Manufacturer of fashionable and functional pet care products
The Company designs, manufacturers and sells a broad selection of traditional and smart pet tech accessories that take the latest fashion and design trends into consideration. This includes collars and wrap harnesses; traditional and retractable leashes; lanyards; gift suspenders, and other accessories. All of Dogness’ pet products are geared to making pet ownership easier, fun and fashionable.
Intellectual property portfolio
As we’ve identified in other companies who develop and manufacture consumer technology products, having a patent portfolio is central to their company’s pedigree. Dogness is no different, and actually looks VERY SIMILAR to a tech start-up in that regard.
Dogness (Nasdaq: DOGZ $0.00) has its own research and development team and capabilities, which has resulted in 100+ awarded and patent pending filings. To see this commitment in building a patent portfolio in a consumer-focused tech company is expected, but it is very impressive to see it in a pet care company.
Vertically integrated manufacturer
Located in Dongguan, China, Dogness is a vertically integrated manufacturer. What this means is it not only designs and manufactures its own products, but it also has established sales and distribution. This gives the company a HUGE COMPETIVE ADVANTAGE in the market.
The Company has a huge profit margin in its products that allow it to be VERY COMPETITIVE in winning NEW MARKET SHARE, as well as defending and retaining EXISTING MARKET SHARE – see below in the “Proven financial growth” section to know how effective this has been.
Established Asia sales and distribution footprint with global growth in mind
Chinese pet ownership is EXPLODING now and for the foreseeable future. According to Statista, it is projected that the China pet market will be worth approximately 222 billion yuan ($34.3 Billion USD) by 2020, up from about 122 billion yuan ($18.85 Billion USD) in 2016.
According to a December 2017 Reuters Business News article titled An investor’s best friend: China’s booming pet market sparks deals, “the growth in the middle class, a massive move to urbanization and other demographic changes – such as growing numbers of elderly, and people getting married and having children later than before – have been turning” China “into not just a pet-owning society but also one that is prepared to lavish money on them.”
And to add fuel to the fire, China’s new pet legislation has lowered dog licensing fees from $285 a year to $42. This favorable legislation lowers a financial hurdle and has become a catalyst contributing to China’s increase in pet ownership by making it more affordable.
And here’s an interesting article we found that references the “pet ownership craze” that’s been sweeping thru the China wealthy and bourgeoisie. Some interesting stats that YOU MUST PAY ATTENTION to:
According to market research firm Euromonitor, the pet care sector in China is rapidly outpacing the world’s biggest market – the United States
China now has the third-highest figure for dog ownership in the world with over 27.4 million dogs in households
China’s cat ownership is even higher – second in the world with 58.1 million (versus 80.6 million in the US).
All of this bodes VERY WELL for a vertically integrated manufacturer like Dogness (Nasdaq: DOGZ $0.00).
Dogness has successfully established a Chinese retail footprint among multi-store retail chains, including general-purpose retail chains and pet store chains, through a distributor model coupled with attendance at trade and consumer shows such as the 20th Pet Fair Asia in August 2017 and the 21st China International Pet Show in November 2017.
As Dogness builds consumer-focused brand awareness in China, it has been able to successfully secure retail customers to support demand.
These efforts have translated to successful sales growth – see below in the “Proven financial growth” section for more details.
Dogness is now using the same model to pursue growth in the global market as evidenced by announcing its attendance at Interzoo 2018 in Nuremberg, Germany.
Oh, and not lost on us in the announcement was the mention of its “U.S. sales team’s inaugural trade show.” Hmmm… so it now has a US sales team… oh yes!
Proven financial growth
Dogness (Nasdaq: DOGZ $0.00) recently announced its unaudited financial results for the first 6 months of its 2018 fiscal year and here are some highlights:
Total sales in the first half of fiscal 2018 increased by 66.0% to $14.8 million from $8.9 million.
Gross profit increased by 79.5% to $6.0 million from $3.3 million in 2017.
Gross margin increased to 40.5% in the first half of fiscal 2018 from 37.5%.
Income from operations increased by 71.7% to $3.7 million from $2.2 million.
Operating margin increased to 25.1% in the first half of fiscal 2018 from 24.3%.
Net income increased by 53.8% to $2.9 million from $1.9 million.
Fully diluted net income per share increased to $0.18 from $0.13.
And revenue increase was reported across all of its 3 main product categories – Pet Leashes, Pet Collars and Pet Harnesses.
2 key factors that the Company mentioned that impacted increase in sales and revenue in all 3 categories:
Improved manufacturing efficiencies allowed products to be more competitively priced, thus garnering more sales orders
Consumers wanting more high-end materials like leather that is common in fashion for their pet accessories
You can click here to read the financials announcement in its entirety.
We believe that Dogness is very well positioned and should continue to see revenue and market share growth in the foreseeable future.
As mentioned previously, we have a second featured company also applying the latest technologies to enhance their Mental Treatment Program. This could be a real chance to enhance your portfolio and double down in this hot, sector.
Let’s change gears and review our second featured company: Kelvin Medical, Inc. (Nasdaq: KVMD $0.00).
Unless you’ve been hiding under the bleachers for the last few years, you’ve witnessed stellar growth in both the fitness tracking and artificial intelligence industries.
BUT even the most plugged-in investor may have missed the AMAZING innovations and investment opportunities with medical technology (“med tech”) companies that are building on health stats tracking with artificial intelligence, or what some call “machine learning” to develop the future of health performance and therapeutic delivery solutions. We believe that the on-going focus from the likes of Alphabet (formerly Google), Apple and Amazon’s to pursue and develop Med Tech solutions will create some very attractive investment opportunities.
Because of this, our Money Street Team has raised our awareness and focus on validating the trends that are happening and finding “hidden gems” that we believe have the potential to play leading roles in the future of the med tech industry and are worthy of investment consideration. One up-and-coming company, Kelvin Medical, Inc. (OTC: KVMD $4.34 – website), has caught our interest. But before we take a look deeper look into Kelvin Medical, let’s look at the trends that are happening with med tech.
Today’s consumer is so fortunate to be able to self-monitor their daily activities through various wearable devices that measure and communicate how their body is performing minute by minute …from calorie burn, to heart rate, to distance and incline walked. But the real magic unfolding right before our very eyes is with innovations that take this very data, analyze it and predict how the body will perform, and if injured, what to therapeutically do about it…cue up our med tech “OOOHHHHS and AAAHHHHS!”
As our Money Street Readers know, we are always diving into various industries looking at growth trends, and identifying companies that are taking pursuing the same growth trends.
One industry that has grabbed our full attention is the “med tech” sector. What we are seeing emerge right now is how activity tracking, machine learning, and therapeutic prediction, have started to intersect in very interesting ways. AND, we are seeing MEANINGFUL INVESTMENTS by players such as Google and Apple. We are talking about progressive innovations in tracking, predicting and prescribing medical therapies for game changing recovery results and overall health maintenance. And we believe Kelvin Medical, Inc. (OTC: KVMD $4.34) is a company that is poised for hyper-growth. So let’s now take a look at the industry, categories and players involved.
YES, the use of predictive analytics embedded in wearable devices to monitor activity data and prescribe medical therapies has our team’s attention, and we are ABSOLUTLY LOVING the opportunities in this category. We believe that the growth and innovations in the med tech sector is RIPE for investment. WHY?
… let us count the ways:
Multi-billion dollar industry – From smart watches to wristbands to various fitness and health-tracking monitors, analyst firm Gartner estimated the global wearables market for 2017 to be over 310 million devices sold that equated to over $30.5 Billion in revenue. The mainstream adoption ensures that at a global level, society has acceptable the use of wearables in their everyday lives.
Growth market – Gartner is also projecting growth for the wearables market with a 16.7% CAGR, year over year. The on-going growth tells us that this market is far from being mature, and will continue to grow for the foreseeable future.
Large consumer pool – According to a 2016 CDC report, over 213 MILLION Americans ages 6+ took part in sports and fitness activities, which was up from 209 Million the year before. With more and more consumers pursuing an ACTIVE LIFESTYLE, this provides the med tech industry with an abundant market to tap into.
Need for innovation – Game-changing companies like APPLE, GOOGLE AND AMAZON and many others have validated the category and will continue to drive innovation, either by developing their own products, or in many cases, purchasing up-and-coming companies. The BIG BOYS have gotten involved and they will bring their appetite for innovation to the market.
Global market – Health and fitness trends are not just in the U.S., and as global consumers continued to be health-conscious, global growth will continue to drive the category. A global market presents global opportunities.
Let’s now work through our thesis about why we are so excited about med tech.
ENTHUSIAST CONSUMERS, more than ever, can use wearable fitness tracking technologies to access informative health data that allows them to truly analyze their body’s performance. It will not be in the not-too distant future where wearables can connect consumers with health and medical advocates and practitioners for customized one-on-one remote medical assistance. As a result, the med tech industry continues to grow at a break-neck pace, with new participants “jumping in” every day. The ability for individuals to set health and fitness goals, hit them – and THEN measure and optimize rest, recovery and down-times (truly allowing them to gain control of all health and medical related aspects of their lives in real-time).
CONSCIOUS ENTREPRENEURS over the past several years have turned their passion of wanting to help people by becoming internationally known personal trainers, med tech and fitness tracking technology inventors and social thought leaders when it comes to maximizing the effectiveness and performance of the body. We have even seen some killer moves made by entrepreneurs in “physical therapy tele-health” whom are starting to disrupt age-old medical practices by providing real-time distance monitoring treatments and solutions. We believe that med tech allows for remote, tele-health services by medical practitioners and advocates will disrupt old-line business practices into new and dynamic service offerings that are empowered by technology.
INTUITIVE INVESTMENTS made by leading technology names (we all know and love Apple and Google) have launched hundred+ million dollar business units focused on med tech, thus benefiting the lives of millions by providing medically focused technology to improve one’s health.
Today’s consumer has an active lifestyle that spans all types of activities, such as Tennis, Running, Golfing, Cycling, Yoga, CrossFit… the list goes on-and-on, each creating different stress loads on the body. These very stress loads create the need for:
Fitness/movement related apps integrated into devices for tracking;
Machine learning to be able to “smartly” interpret activity data; and
Integrated med-tech devices to self-manage the therapeutic prescriptions
This is the REASON why we are BULLISH about the Med Technology market.
We view the advancements in wearable technologies and artificial intelligence happening now as a HUGE INVESTMENT OPPORTUNITY for our Readers who like to co-invest alongside us in opportunities we discover…
Because when someone gets hurt due to their active lifestyle, they will PAY ANYTHING to make the pain go away and to recover so that they can GET BACK to their
NORMAL DAILY ROUTINE. And for many of us, we will do whatever and pay whatever it takes to get quickly healed so that we can get back to working out and achieving our health and fitness goals.
And the market is setting-up for a huge consumer demand:
Just take a look at the growing senior population that is staying active well into their 70’s and 80s;
You then have the young 20 somethings who have been exposed to the boot camps and Crossfits at an early age…
And sandwiched in between the two are Generation X & Y populations who are still wanting to hold onto to their “GLORY DAYS“… someone cue up the BOSS.
This is why we are allocating a portion of our portfolio for investment into the Med Tech industry. We believe that this category is setting up for an INCREDIBLE J-CURVE GROWTH over the NEXT 5 to 10 years.
MASSIVE INVESTMENTS ARE BEING MADE IN MED TECH
Before we present our specific research findings on Kelvin Medical, Inc. (OTC: KVMD $4.34), we think it best to highlight the activities of high-valued companies (they’re too expensive to get in on) who are pushing for market innovations in the med tech sector.
Market Cap: $770.448 Billion
Alphabet Inc. (formerly known as Google), through its subsidiaries, provides online advertising services in the United States, the United Kingdom, and rest of the world. The company offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal Internet products, such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome, and Google Play, as well as technical infrastructure and newer efforts, including Virtual Reality.
Alphabet has revolutionized and transformed how information is gathered, accessed and distributed among our global society. It has truly changed how we go about our daily lives with this widespread access to information and data.
And now, it’s setting its sights on med tech.
With the launch of Google Health back in 2008, Alphabet signaled its entrée into health-related initiatives. What started out as focus on healthcare as since expanded to all things-health.
Alphabet’s launch of Google Fit, a platform that allows 3rd party developers to build health and fitness apps that allow users to track and monitor their exercise and wellness data through an Android phone or tablet, or a Google-based wearable, is its push into expanding its footprint with wearable technologies.
And all indications are that Alphabet will continue to be an active investor and participant in the growing Med Tech category. Its venture capital group, Google Ventures, has invested in editas Medicine, Foundation Medicine, Collective Health, One Medical Group, 23andMe, FitStar, Rani Therapeutics, Rodin Therapeutics, Aspire Health, Clover Health, Compass Therapeutics, TinyRx, Metabiota, Zephyr Health and many other health and fitness companies.
And we are also seeing Alphabet pursue a parallel M&A strategy where it will buy up-and-coming companies to further build upon its market position. According to a GeekWire report, Google acquired Senosis Health, a Seattle-area startup whose focus was on turning smartphones into health monitoring tools. Senosis Health’s apps use a phone’s built-in sensors to perform checkups that would normally require a dedicated sensor.
Alphabet’s med tech activities further validate that on-going innovation between hardware and software is happening at a fast pace, and that is will be seeking to invest and buy companies that share in its med tech vision.
Market Cap: $890.64 Billion
Founded in 1977 and with headquarters, Cupertino, CA, Apple Inc. designs, manufactures, and markets mobile communication and media devices, and personal computers to consumers, and small and mid-sized businesses; and education, enterprise, and government customers worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications.
Like Alphabet, Apple is taking steps to be the market leader in med tech. Leveraging its market leadership and business acumen in the smartphones category, it’s a natural path for it to enter the med tech market.
In 2015, Apple launched its smartwatch, Apple Watch. It was designed as a “comprehensive health and fitness companion.” Apple’ Watch has med tech features that include an accelerometer and a built-in heart rate sensor. It also connects to iPhones, which provides consumers with a comprehensive view of users’ physical activity and overall health stats.
Apple has also courted the developer community to build med tech apps that are native to Apple Watch. It has launched HealthKit, ResearchKit and CareKit to engage developers, researchers and medical practitioners with its med tech initiatives.
According to Harry Wang, senior research director for Parks Associate, Apple is “known to be searching for the next $100 billion opportunity, and the gigantic healthcare industry is ripe for technology disruption.”
Mr. Wang adds that Parks Associates believes Apple is “taking a long-term view about the roles that the company can play in healthcare and learning where Apple’s technology and business models can fill market gaps or dramatically improve patient care.”
Given Mr. Wang’s observations of Apple, we are truly excited for growth in the med tech category.
Market Cap: $612.66 Billion
Founded in 1994 and headquarters in Seattle, WA, Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. It operates through the North America, International, and Amazon Web Services (AWS) segments. The company sells merchandise and content purchased for resale from vendors, as well as those offered by third-party sellers through retail websites.
Additionally, the company offers Amazon Prime, an annual membership program, which provides free shipping of various items; access to unlimited streaming of movies and TV episodes; and other services.
Widely recognized as the premier online global retailer, Amazon has successfully executed on its business model to revolutionize the shopping experience. In doing so, it has successfully built a consumer-centric engagement model that allows it to have deep insights to consumer data as it relates to purchasing behaviors and interests.
Amazon is now setting its sights in the med tech sector.
In the not so distant future, we can see Amazon being able to analyze data on a consumer’s health, and can make highly personalized recommendations on what food, supplements, and eventually…medication, that the consumer should purchase.
It could also grow into tele-medicine where medical practitioners can use a consumer’s health data captured on a wearable, to proactively recommend preventive care, or to address a specific healthcare issue that the consumer is facing.
A report from One Click Retail found Amazon is now turning into its focus in the Health & Wellness market, instantly making it a key player in the market.
Nathan Rigby, vice president at One Click Retail, analyzed Amazon’s sales for products listed under its Health and Wellness category. Compared to the previous 52-week period, Mr. Rigby identified that Amazon’s Health & Wellness sales grew by 30 percent, bringing the total category size to US$2.55 billion. Nutrition continues to make up the bulk of the product group, with $1.8 billion in sales, followed by wearable health devices ($600 million) and wellness & relaxation ($150 million).
We wanted to highlight Alphabet, Apple and Amazon as all 3 companies have all used machine learning and artificial intelligence to successfully grow their respective businesses.
This further validates our own research criteria to identify undiscovered companies that have similar technology focuses to that of Alphabet, Apple and Amazon.
Necessity is the Mother of Invention
Once we’ve identified a target market category that is attractive for investment, we start looking for target investment companies that fit our target investment criteria.
In basic summary, Kelvin Medical is an early stage artificial intelligence and therapeutic product development company whose founder, William R. Mandel, has over 25 years of engineering and medical device product development/introduction. What we love most about this story is the founding of Kelvin Medical was driven by a personal physical ailment that caused the “aha” moment for him. When we find these types of entrepreneurial stories our investment mouths water, as that typically indicates an “I will prevail mentally.”
Kelvin is a research and development company whose founder, William R. Mandel, had a physical ailment that caused him to seek out therapy.
During the course of some daily chores, Mr. Mandel ended getting a repetitive stress injury called lateral epicondylitis, AKA “tennis elbow.”
So his story goes… that during the course of daily chores, Mr. Mandel developed a repetitive stress injury called lateral epicondylitis, AKA “tennis elbow.” When he sought treatment for the painful condition, he was told to put ice on the area and alternate the ice with heat.
As he looked into methods for accomplishing this treatment, he realized that the available options were the same as it had been for decades: an ice pack and a heating pad. The process is somewhat messy and you’re required to sit at a spot so it’s not very portable and efficient for today’s multitasking society. As you would imagine, his recovery was lengthy and slow. Which has since inspired an entrepreneur to act.
Innovation to Capture the Huge Market
Mr. Mandel launched Kelvin Medical to research, prototype and commercialize first and foremost an app-based tracking technology that through using artificial intelligence, can analyze and forecast body tissue impacts/damage, to in-turn recommend therapeutic treatments of which would be delivered through a form fitting hot and cold therapy device.
The initial product for Kelvin Medical’s coming to market period is aptly named Therm-N-Ice. Through Therm-N-Ice, Kelvin Medical is taking traditional therapy treatments and adding innovation to help the hundreds of millions of cases of sprains, strains, and contusions that happen each year as a result of sports activities or daily activities.
Consumers will now have the ability to track activities, have the data analyzed through machine learning techniques and then auto-program targeted, continuous hot and cold therapy, or uninterrupted Contrast Therapy to injured areas over an extended period of time. And instead of relying on chemical reactions, the Therm-N-Ice is battery-operated so treatments can be for a longer length of time without the mess and hassle that exist with current chemical-based therapies.
Core tenants of Kelvin’s business include:
Wearables product roadmap
AI platform is the engine
Single app connectivity
Wearables Product Roadmap
We are truly living in a wearables world.
What started out as accessories that allowed consumers to strap their iPods and iPhones to their bodies, evolved to heart rate monitors, and then to smart wristbands, and now to smart watches.
Kelvin Medical is working on future wearables that include:
Body performance monitoring for:
Pre-activity – Consumers will be able to monitor areas in their body that they had a past injury. Data would be gathered to not only see how the body has recovered, but how it is performing post-injury. This would give consumers insight and confidence on whether they are ready to start increasing the intensity of physical activities.
During activity – As consumers recover from an injury, they will continue to have doubt on whether they are back to 100%. Consumers will be able to track and monitor and report how their body is performing real-time during physical activity. Sensors would track how the injured area is performing and would alert someone to stop what they’re doing, as to prevent them from re-injuring themselves, or reinforce that they continue to pursue their current intensity.
Post-activity – Many consumers who have recovered from an injury will start to slowly ramp back up to their workouts and fitness activities. Consumers will be able to track the injured area post-workout to ensure that the injured area has fully recovered.
Treatment progress and long-term prognosis – Consumers will be offered the opportunity to track their recovery progress based on the treatments they have done, and receive recommendations on additional treatments.
Nutrients delivery – With a battery power source, KVMD will be pursuing research to explore the opportunity to create “cartridges” that can be inserted into wearables where they can be heated and activated, and delivered into the skin to be absorbed. Consumers would be able to schedule the times they would want the nutrients delivered. This research would include holistic medicines such as Essential Oils and Cannabidiol.
Subscription based model – As the Company is researching into the viability of “cartridges”, should it be successful, there would be a massive opportunity to create a subscription based model where consumers would be able to sign-up and receive cartridges delivered to them on a monthly basis. This would be a potential GAME CHANGER as this would position the company into a “razor & razorblade” business model.
AI Platform Is the Engine
Data is KEY, but AI unlocks value.
KVMD recognizes that artificial intelligence will play a key role in its ability to effectively leverage the data capture from its wearables, and deliver on-going value to consumers. The AI platform will be the engine that powers everything.
Kelvin intends to launch a robust AI platform to optimize its ability to not only capture the data, but to process the data and make tailored recommendations that are specific to each consumer.
With a robust AI, Kelvin will also be able to introduce “voice support” and “goal/challenges” as part of its wearables product offerings.
Leveraging the popularity of Siri and Amazon’s Alexa, consumers would be able to utilize voice-recognition with their Kelvin wearable. This would further create a “personalization” between consumer and device, and build brand value.
According to an abstract published by National Institute of Health, an important part of physical therapy treatment is goal setting. Thus, Kelvin wearables will offer features to help consumers set goals that focus on their recovery and set it as a priority.
With the future enhancements that are referenced above and in Kelvin Medical’s Product Roadmap, the only way that the company will be able to successfully launch and optimize future wearables is to have an AI platform that powers everything.
What’s nice is the healthcare sector continues to be an industry where AI innovation is exploding. According to an Accenture Consulting report, it is estimated that “AI applications can potentially create $150 Billion in annual savings for the US healthcare economy by 2026.”
With all of the AI innovation that is occurring, it is likely that an AI platform exists for Kelvin’s needs. THIS IS HUGE as the company will not have to build something from scratch and can shorten its go-to-market with its own AI platform.
Single app connectivity
From day one, the company intends to have its wearables connected to an app. That said, Kelvin recognizes that many consumers will have more than one injured body part.
It is important that consumers have the ability to control and manage multiple Kelvin wearables from a single app. We believe that this will enhance Kelvin’s value and product offerings, and make it extremely compelling for consumers to not only purchase one Kelvin wearable, but multiple wearables.
Thus, its vision is to have a single app that can power multiple wearable devices. As much as this sounds like a “common sense” thing, we have historically seen products be developed from the same company that require different apps. For you sports fans, you do remember the ESPN app and the ESPN radio app, right?
The need for single app connectivity further reinforces the need for a robust AI platform.
The nice thing is that Kelvin recognizes this and is taking the necessary steps to ensure that it can deliver single app connectivity.
It is vital that innovation is protected. We are please to know that Kelvin is pursuing an IP strategy that not only protects its investors, but also creates enterprise value for the company.
Kelvin Medical, Inc. has already been granted both U.S. patent #9849024 and Chinese patent # ZL2011800385884 03-02-2016. Kelvin Medical has exclusive rights to develop using this technology.
The Company will continue to expand its IP strategy will additional filings that compliment its future innovations.
Why Kelvin Makes Sense
Mr. Mandel initially set-out to make a product to fulfill an unmet need he had. The product was to take an existing market and bring innovation to it.
Kelvin Medical was initially created for a singular product. However, it has since served as a platform to develop future products that bring machine learning and artificial intelligence into the med tech market.
Although Kelvin is initially focused on Therm-N-Ice, it’s patent is broad and allows for the addition of several unique features and different configurations that would expand the product portfolio.
As the Company is incorporating machine learning and artificial intelligence into med tech products, it is aligned with the philosophies of Apple, Alphabet and Amazon, which could make it an attractive acquisition candidate.
And we believe that the investment opportunity is right now.
And you can’t play if you aren’t in the game. Given Kelvin Medical, Inc. (OTC: KVMD $4.34) current share price, we believe that a double or triple share price value is not out of the question. But like we always say, YOU MUST OWN KVMD in order to ride its growth.
And with every stock situation, it is crucial that you follow our stated mantra of protecting partial gains on your way up, up…up and away!
Dogness is the Alpha-Dog in the Making
Dogness (Nasdaq: DOGZ $0.00) is a still relatively new entrée to the market. But we believe the key reasons we identified (see below) are setting-up Dogness to be a big opportunity:
Manufacturer of fashionable and functional pet care products
Intellectual property portfolio
Vertically integrated manufacturer
Established Asia sales footprint with global growth
Proven financial growth
As evidenced by their 6-month financials, they are ALREADY SEEING RESULTS from their strategy unfold.
The 2nd half of 2018 should even be better.
Well, the holiday season is when most people load-up on gifts and products for their pets. The foundation that Dogness has built, and is continuing to build, should pay off in spades.
AND, as the Company shifts its focus into pet tech (which we believe will be SOONER than LATER), it will then be able to stitch together a “whole product strategy” that bridges both traditional and tech products for pet owners.
So, as we always recommend, DO NOT DELAY in getting your research done on Dogness (Nasdaq: DOGZ $0.00)
REMEMBER, you can’t play the game if you’re sitting on the sidelines watching.
So do not haste, and go do your research… NOW.
Take the time.
Make the effort.
Don’t miss out.
We suggest that you should look to add Dogness (Nasdaq: DOGZ $0.00) to your portfolio today as a long-term addition. Remember, as with any stock situation, it is crucial that you follow our stated mantra of protecting partial gains on your way up, up, … and away!
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