There are certain markets and products that “just happen” as a matter of events or today’s society. They aren’t necessarily critical products or markets, but products or markets that rise due to an issue that most consumers would rather ignore; life insurance, kidnapping and staff tracking are good examples. One way or another, however, these products or markets happen, grow and generate profits whether a “regular” consumer likes it or not. Investors that can find a company involved with an “invisible” product/market may have a leg up on others wishing to profit quietly.
GTX Corp., a miniaturized global positioning system (GPS) manufacturer and marketer, works to provide very small tracking devices for monitoring people or personal items. According to the company and GPS World Inc., the subscriber base for such items should reach 300 million individuals and $8 billion by 2011.
The company, per se, does not sell to the consumer level. It does, however, sell/license to hundreds of consumer-item manufacturers wishing to take advantage of 24/7 tracking and mapping services. People wishing to monitor children or valuable personal items can find the company’s product in many consumer/professional items. The company’s first major rollout for its product has been to footwear companies.
Offering its technology in a runner’s shoe allows precise time and location readings for runners, whether in a marathon or just out for a run. Once the idea does begin to show positive results, larger potential then exists for the military, prisoners on release, and roaming offsite workers. At first, the concept of instant positioning may be a bit off-putting, but as one considers the possible benefits, the horizon tends to widen substantially.
Although closer scrutiny should be exercised, there does appear to be room in the company’s balance sheet for investor advantage. Clearly, the company is well on its way to being one of the “first-ins” to a market ready for its opportunity. Even if the industry forecasts are off by several points, there certainly appears to be potential for these Orwellian devices. The company thinks so, as do many individual investors that have recently taken advantage of a private offering. The company appears to be in very positive terrain as a potentially profitable market readies for launch.
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