CloudTag Inc - an exciting underdog!

Real time health stats, at the click of a button. The growing market of health monitoring technologies has been taking on the everyday man since some bright spark attached a heart rate monitor to a treadmill, myself and colleagues now believe that this is a market soon to explode.

Not long ago, in May, Samsung laid out their vision for the future of wearables; a scenario where our wearables collect our health data and lay them out to us in some useful manner via a mix of alerts, graphs and smartphone apps. With this vision, they also brought us a new prototype smartwatch. The Simband… (See photo above)

However, this isn’t ground breaking. Samsung has already released their underwhelming Gear Fit, with its ‘Personalised Fitness Manager’.

There were two main problems with the Gear Fit. The first was that it was locked to only connect with other Samsung products. This left the product as a super niche, satisfying only those who both had a flagship Samsung smartphone, and who felt they needed the poverty spec of Samsung smart watches. If you further this out to practical terms, almost no one has one of these, so the product didn’t spread to a wider market.

Secondly, it simply wasn’t very good. Having used it, I can safely say that the health tracking capabilities of the Gear Fit were that of a pound store pedometer, hot glued to what could have been a random number generator in place of a heart rate monitor.

So, a good idea that fizzled and died, it would seem. Maybe not…

Anyone interested in the tech sector products will have heard of the two new boys on the block: The Moto 360, and the LG G Watch. Now, these two unreleased bad boys caught my eye somewhat, they looked to me, like they could actually be worth buying..!

The sleek aluminium design of Motorolas new toy combined with the jaw dropping circular AMOLED screen are what catches the eye of the viewer gazing upon the Moto 360, while the subtly rounded square face of the beautifully crafted G Watch awaits the LG onlooker.

So, what’s special about these two? Well, they haven’t fallen to the hurdle of availability as Samsung so poorly did. Both running adapted versions of Google’s new Android Wear, they will be able to seamlessly connect to any phone running 4.3 or above. Although unfortunately, Apple lovers will, for now, have to wait for their rumored iWatch. (IOS Support is expected to be developed but will not be available for release.)

Both these watches will apparently have what Samsung's attempt at a fitness band should have been. High level sensors that will continuously monitor the users health stats and relay the information in a useful manner via Google Now.

Now, while we cannot confirm anything at this time, some of the health tracking capabilities of the Moto 360 seem to have been leaked somewhere along the development line - more detailed information to come.

CloudTag Inc, ever heard of them? I hadn’t a clue who they were a week ago. CloudTag Inc are an AIM listed tech firm that offer clinical grade physiological monitoring technology to professional sports companies, consumer well being and weight loss markets. And possibly Motorola too.

With the introduction of Moto 360 smart-watch to the consumer market expected soon, rumours are already beginning to flood the market about the potential specifications of this new product. Most analysts agree that it will almost certainly come with health tracking technology and it could well be that CloudTag have offered their assistance in this:

1. CloudTag are one of the very few companies that are currently producing both the hardware and software that can make medically accurate health statistics.

2. Motorola are well known in the industry for choosing these smaller companies to work with (or buy-out).

3. Tie-ups between smaller companies and large tech giants have grown exponentially over the last three years.

Even if you're not a believer that something maybe going on between these two companies, CloudTag is still positioned at the helm of an industry that is estimated to be worth $8.68 billion by 2018.

Personally (please do your own due diligence), I don't think that I can afford not to own at least some shares in a company that's currently only worth  £7.34 million, when very similar companies that offered less accurate technology in the retail market have been bought out for multiples of that amount. For example, Jawbone buying BodyMedia for in excess of $100 million and Underarmour buying MapMyFitness for $150 million.

Also, on a more interesting note, CloudTag's chairman is also Vice-President for Chelsea and the company has strong links with the team behind the XBOX Kinect - imagine the high profile launch you could have with these link ups if they went for it alone!

Most importantly for a small tech company is knowing that you're not going to get stung by a placement and CloudTag have even covered that one, having raised enough cash to see them though for in excess of twelve months - by which time it's very likely that they'll be strongly generating revenue having launched their first MyCloudTag app already.

Good luck traders and do your due diligence,

The Masked AIM Trader.