Memex Inc. (OEE-X)

A big disappointment. It should a golden time for them, but they can't capitalize on their clients.

This has great products. They are in the Internet of Things. Effectively they connect machines on a shop floor so that they communicate with the systems. One concern was about security in the passing back and forth of information, but they’ve been able to get around that. Has a large number of installed clients. If they can end up building out into those installed clients, then their opportunity would be significant. Payback on equipment is less than 4 months.

A great product with a huge payback, but despite being champions with various customers where it has been installed, it seems customers are still dragging their heels, partly because of tax legislation in the US.

The product allows you to connect the shop floor to the top floor in order to raise efficiency. The payback is less than 4 months. The challenge at the moment is that you need in-house champions for the product. He thinks they will continue to do well. It declined recently because of NAFTA concerns.

The recent decline in sales is because of the uncertainty of NAFTA. There was also the impact because of potential changes in tax legislation about writing off taxes faster. That seems to be behind them now. This is an investment on a long-term basis as they take machines on the shop floor figuring out which ones are producing, to get rid of bottlenecks. The payback is about a 400% return on their investment. The company has spent about $3 million over the last 3 years upgrading their product. This is a stock you can buy, throw in a box, and 2 years from now you will be very pleased.

A kind of “Internet of Things” company within the 4 walls of a shop floor. If you have a manufacturing company, you want to be able to figure out if your machine is up and running, productivity, wait time, etc. In a lot of cases, the equipment on the shop floor is 15 years or older, and this company has an adapter that they can use to communicate with them. The company works with Cisco (CSCO-Q) as well as a very large Japanese equipment manufacturer. The payback is less than 6 months. Have just unleashed some new software, and are quite optimistic their clients should be keen on embracing that. Latest earnings were a bit lumpy, but overall the trend for what is going on in the industry is quite good.

Average age of machines on a shop floor is about 20 years at roughly $1500 per machine. They can tie them all together and measure productivity. The payback is extremely attractive at about 400%, and the payback is less than 6 months. They work with Cisco (CSCO-Q) to create and reduce concerns between the shop floor and the top floor. They also have a relationship with Mazak, the largest machine tool maker globally with a 1,000,000 ft.² factory in the US, who are going to use their product as well as championing it out to a large number of customers. Thinks 2017 will be an attractive year.

An Internet of Things company. They typically take machines that are on a factory floor, and are able to stitch them together to get them to communicate to an overview system. It is important to note that the payback on this company is 400%. They have a significant number of installations in large manufacturing companies in North America. If they were to build out the rest of those opportunities within their existing client base, it would provide a significant opportunity for them. If you buy this, throw it in a box, wake up 3 years from now and you’ll be very pleased. Earnings are forecast to be $.01 by September 2017, which gives a 28X PE multiple. A strong company with a great future ahead of them.

This has a partnership with Cisco (CSCO-Q) as well as Mazak, a large Japanese based robot making company. Their software connects machines on the factory floor to the top floor. Because of concerns of viruses between the factory floor and the top floor, Cisco basically provided a buffer between the 2. Cisco gave this company a huge endorsement. Thinks the company will do well. In the near term, they are ramping up expenses and hiring sales and support staff. On a 2-3 year basis, the stock will do well because of what they offer. In the near term you are not going to see a huge improvement in earnings, until those new sales hires start to pan out.

CISCO needs them to come into manufacturing facilities. They ensure all tools on a platform in a manufacturing floor integrate efficiently. It has great management and a short payback period. 300% and 4 month payback. It is a takeover candidate.