Wednesday 25 June 2014

CloudTag Inc - More than meets the eye?

Good morning.

As promised here's a further update to my original CloudTag post with some juicy details:






A few days ago, we heard of the possibility of some kind of deal that has happened between Motorola Mobility and CloudTag. While many are skeptical, the evidence seems to be mounting.



Most analysts believe that Google hope to capitalise on the growing fitness industry, and as such are trialing some new technology through use of the latest device in their sphere of influence, the Moto 360.



Where did these rumors appear from? About a week ago, these patent images were supposedly leaked from a private email:
Large Diagram.jpg
Small Diagram.tiff


Watch with labels.jpg

Starting from top working down, here’s what we reckon these are:

- A diagram of how the automated monitors could work.

- A circuit diagram for a Electrocardiograph (Heart Rate Monitor).

- A general overview of visible watch features.


Circular AMOLED screen? EM charging surface? Looks hopeful.



The few analysts I've talked to believe that these images are genuine. They all add up to what we already know or suspect:


- Google wants to diversify into wider technology sectors, and could using the satellite company Motorola Mobility to test out technology.


- The only company we could find that has this level of clinical grade ability, but with retail market intentions is CloudTag Inc.


- CloudTag Inc themselves have been expanding into the mobile industry with their iPhone App MyCloudTag. This could perhaps be a two way deal, Motorola gets to use their software, Motorola endorses an updated version of this app for Android (which we already know they’re developing from CloudTag’s FAQ) to present the collected health stats in a useful manner.



However, even with all of this laid out, there are still a number of unanswered questions. For instance, why would google not output the technology themselves if they’re so hopeful?



We think the answer to this lies in two areas. Firstly google has set out a reputation of high quality with their top of the range products, including the Nexus Smartphones/Tablets, and their chromebooks, most notable the very high spec Chromebook Pixel. By slightly distancing themselves from the product they hope to escape any harsh reviews due to possible product flops while still being able to collect valuable information. The Smartwatch arena being so new, Google likely want to know everything they need to before entering personally.



Secondly, I have two hypotheses for the ownership of the technology and how this could effect a deal between CloudTag and Motorola. Back in 2010, when Google bought Motorola Mobility for $40 a share ($12.3B) they bought something most bloggers forget. The Patents. Should Google own this technology, it could well be on trial loan to Motorola. If the technology works well, Google may well buy out CloudTag for all the technologies they have and as such have complete control over the field of clinical grade health monitoring in mobile devices. Even if this isn’t the case, with the huge predicted sales of the Moto 360, a bond between CloudTag and Motorola could lead to two very prosperous companies, and possible a buyout by Motorola to have complete control over the technology.



So… What have we come to?



Although I have no conclusive proof (an RNS) I am almost certain that there has been a deal between CloudTag Inc and Motorola Mobility. This could lead to huge growth in CloudTag, and/or a buyout. I personally think I would be missing out on a great opportunity not to have shares in CloudTag, and these rumors have made me really want one of these Smart Watches.


Please do your own due diligence on this one,

The Masked AIM Trader.

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