By now, most people are aware of Donald Trump’s trillion-dollar pledge to fix the failing U.S. infrastructure.
But that trillion dollars is just the tip of a much bigger iceberg.
The real cost of diffusing this infrastructure time bomb could actually be $4.6 trillion. And that’s before considering the investments needed to protect and maintain that system.
Luckily, one little-known company is ahead of the curve in this market, launching an artificial intelligence application that could help save billions of dollars in cleanup, repairs and liability.
First, consider just how bad our current infrastructure is:
- More than 15,500 of the country’s dams are considered a high hazard for public safety and could take nearly $60 billion to repair.
- There have been more than 3,032 pipeline spills since 2006, spills that have cost the U.S. $4.7 billion.
- Six billion gallons of water are lost every day in the U.S. because of leaking pipes – part of a water infrastructure crisis that the EPA estimates will cost $275 billion to fix.
Each of these industries has spent millions on remote sensing equipment in an attempt to combat disasters, but the data flooding in from every pipeline, dam and electricity cable is simply too much to decipher.
While such information should be able to warn us in plenty of time, it’s not. Instead, it’s sucked into a vortex, burying companies under a flood of information that is too much to handle.
The company working to solve these problems is Carl Data Solutions (CSE:CRL; OTC:CDTAF), and its latest Internet remote monitoring technology can help to detect and avoid infrastructure disaster, saving not only billions of dollars but also lives.
In one of the most important markets in the modern era, it’s no wonder that Carl Data is attracting investors looking to trade the coming boom.
Here are five reasons to keep a close eye on Carl Data Solutions (CSE:CRL; OTC:CDTAF)
#1: There’s Far Too Much Data to Handle
There’s just too much data coming at us every day.
The one vital data point that will alert you to the next leak in a pipeline system that spans 2.4 million miles is far worse than looking for a needle in a haystack. And these data systems are only getting more complex.
By 2020, more than 50 billion devices will be connected, creating millions of terabytes of data that will need to be managed, stored and analyzed.
And Carl Data’s is one system that is gearing up for this challenge.
In Los Angeles, Boston, Seattle, Toronto and Dallas, Carl Data is attracting interest from the Big Data industry.
With breakthrough technology, Carl Data intercepts this big data, and makes it actionable, helpful and profitable. In fact, it’s taking that data and managing it in its cloud.
Plus, Carl’s SaaS (software as a service) based solutions help identify structural issues in real time, saving crucial time and a good deal of money, too. Saving $4.7 billion in pipeline damages since 2006 sure would have been helpful.
Even better, its use of predictive analysis machine learning (which gives computers the ability to learn without being programmed) and web-based applications assist with all areas of data collection. It can analyze past storm events, for example, and then use weather forecasts to calculate how likely a future storm is to cause damage to infrastructure.
In fact, Carl Data can predict potential events up to seven days in the future.
#2: Carl Data is Already Generating Revenue
What’s nice about Carl Data (CSE:CRL; OTC:CDTAF) is that it’s working across multiple platforms with its SaaS-based technology, so potential revenue streams are likely to increase.
Plus, it already generated revenue which is on an upward trend between 2016 and 2017. Better yet, it’s potential for generating further revenue is greater thanks to recent acquisitions.
- Through its acquisition of FlowWorks real-time reporting and analytics in 2015, Carl Data solidified relationships with major sensor manufacturer Hach, with a new project for the city of Dallas, which has since been expanded, with several more projects expected in the near future.
- Carl Data’s Polish subsidiary, where its core team of data scientists are approved for a substantial EU research grant to help the company maintain its lead in tech that monitors aging water infrastructure.
- Carl Data is also working on closing a deal with big-cap miner Teck Resources and has developed and deployed an application for monitoring tailing ponds. The tech system is designed to help Teck manage risk and is expected to result in significant operational savings.
Moving forward, Carl Data expects to generate $1.9 million from water flow management services in 2018, $250,000 in revenue from dams and reservoirs, $500,000 from pipeline monitoring, and $1 million from smart city applications, according to its latest business plan.
Better yet, according to President and CEO, Greg Johnston:
“The space is growing very rapidly, as cost of hardware goes down it is getting easier and easier to collect data, but ours is the only app that can solve this.
It is built to handle multiple verticals with very little customer development, from Water Utilities, to Mining, to oil and gas – the applications are completely separate from our backend so it does all the heavy lifting. They can also run it from another application—so this is all available to them.
We have a model that is 80% of our revenue and it makes for expected high margins - it is also a very sticky product, we have your data and it is in a way you get used to so it’s a pain to change. We have some very large clients – some of the largest cities in North America and now one of the largest mining companies that we just signed.”
#3: U.S. Infrastructure is Failing Rapidly
The American Society of Civil Engineers (ASCE) just gave current U.S. infrastructure a D+ rating. That tells us we’re in desperate need of repair. And already, we’re too late. Even the Federal Transit Administration (FTA) has estimated that there’s an $808.2 billion backlog in deferred maintenance on the nation’s rail and bus lines.
On top of that, according to the American Road and Transportation Association, nearly 56,000 bridges in the U.S. alone are structurally deficient.
Considering that seven out of 10 dams will be over 50 years old by 2025, monitoring and disaster protection is a market that is only going to grow. The ASCE dam report card estimated that it would require roughly $45 billion to repair aging high-hazard potential dams—those that have the potential for loss of life as a result of failure.
For those reasons, we desperately need a better way to predict impending infrastructure failure, and ways to safely collect and actually use data to tell us where trouble lies. Again, that’s where Carl Data plays a critical role. Its artificial intelligence can alert infrastructure operators of potential disasters and allow us to respond to potentially life-threatening situations.
A seven-day warning could very well be the difference between life and death in these situations.
#4: Remote Sensing is a $27.11 Billion Market
It’s easy to see why remote monitoring could be worth $217.11 billion by 2023 with a CAGR of 4.47% between 2017 and 2023.
We also have to consider that worldwide revenues for big data are forecast to reach $150.8 billion this year, a year over year increase of 12.4%.
By 2020, revenues could be well over $210 billion.
“The industries that will be making the largest investments in big data and business analytics solutions in 2017 are banking, discrete manufacturing, process manufacturing, federal/central government, and professional services. Combined, these five industries will spend $72.4 billion on BDA (Big Data) solutions this year,” according to analysts at IDC.
There’s no limit to where Carl Data’s patented (Is it patented? I could not find any disclosure by Carl Data about that) technology can be adapted to be used in this booming industry.
#5: Big Vision from Big Brains
Carl Data is seeking to change the way we look at infrastructure problems and our response time.
Right now, trillions of dollars have been spent—and is at stake—because of antiquated infrastructure that's already falling apart. For example, a flood can hit us with $700 million in damages. Clean up costs can cost up to $1 million a day.
Many of our dams, bridges and pipelines are old and failing.
However, thanks to Carl Data’s vision for big data, there is now the chance to avoid disaster and save not only money but also lives.
Helping to disrupt our future, Carl Data is rounded out by some big names.
- President and CEO, Greg Johnston has 23 years of management expertise for large multi-national corporations and small start-up technology ventures. He was also the former director of ecommerce marketing for Global Hyatt Corporation, where he increased online revenue by 34 percent. He’s also a principal at BDirect Online Communications, Director of Database & Loyalty Marketing for Choice Hotels Canada, VP of Antarctica Digital Marketing, and partner at Revenue Automation Incorporated.
- Chief Technical Officer Piotr Stepinski is a software engineer specializing in data processing, cloud computing and continuous delivery in Agile environment. He was the former senior software engineer for the Kainos Group PLC, Atena & Telzas.
- Vice President of Engineering Mike McDonald is a founding programmer and Development Team Lead for FlowWorks Inc. with over 10 years of experience in software development both in the data analysis and engineering sectors.
- Director Chris Johnston, a professional engineer with over 27 years of experience in civil engineering and infrastructure management, is a co-founder of FlowWorks Inc.
- Director Craig Tennock is a veteran civil and structural engineer who was awarded the Order of Merit by Industry Canada for designing and implementing a new way to measure open channel flow with greater accuracy.
Again, we’re all well aware of the government’s plan to spend $1 trillion on fixing America’s aging and ailing infrastructure issues.
But any fix is just temporary and not nearly enough.
As the infrastructure time bomb ticks away, Carl Data is providing a very real solution in real time that can do what much of what is really needed for America’s infrastructure crisis.
Honorable Mentions:
3D Signatures Inc (TSXV:DXD) is a high-tech company with an innovative new software platform which uses 3D analysis to target various diseases and help clinicians identify a diagnosis and optimize treatment plans. 3D Signatures’ software is saving doctors time which will make a huge difference in the treatment of patients. It is also compiling data which has formed one of the most innovating mapping platforms out there. Using its mapping platform, the software can determine how a disease will progress and whether or not the patient will respond to treatment.
The company’s broad scope and futuristic technology brings a promising opportunity to potential investors. 3D Signatures is at the forefront of a new revolution in medicine, and investors are sure to take notice.
Mogo Finance Technology Inc. (TSX:MOGO): This is a new spin on unsecured credit, which is a burgeoning sub-segment of FinTech. Providing loan management, the ability to track spending, stress-free mortgages, and even credit score tracking, Mogo is at the forefront of an online movement to assist users with their financial needs.
Mogo’s software analyzes borrowers instantly and greatly reduces the traditionally cumbersome underwriting process for loans. It’s online only, so there’s very low overhead and a ton of cash to spend on marketing. Labeled as “the Uber of finance” by CNBC, Mogo is definitely turning heads.
With increasing membership growth and revenue lines continuing to improve, and a platform which many banks have failed to offer, Mogo could well become an acquisition target in the near future.
Shopify Inc (TSX:SHOP) is a Canadian e-commerce company with more than 500,000 companies rely on Shopify’s real-time e-commerce, including Tesla, Budweiser and Red Bull, among many others. Shopify manages their e-commerce machines, and its stock is now up to over $106 right now, with a market cap of over $10 billion. CNET called the application “clean, simple, and easy-to-use" in a review of the Shopify platform.
And Shopify isn’t just an app. The company is building a huge collection of data which will revolutionize commerce as we know it, which makes it appealing for acquisition.
The company’s online presence and sheer reach make it an ideal buy for investors. Shopify makes purchasing goods and services easy for anyone – and in a time where convenience is king, Shopify surely has staying power.
Redline Communications Group Inc. (TSX:RDL ): Redline is not a giant, but it does operate in more of a niche environment—in hard-to-access places, providing wireless for critical industries, including oil and gas, and anywhere from the rainforests of South America to the slopes of Alaska and the deserts of the Middle East.
While the company didn’t manage to squeeze a profit in Q2 2017, we expect the company to improve its operations results as it did in the previous quarter. The company’s main challenge remains to expand and attract new customers for its new LTE product.
Cogeco Communications Inc. (TSX:CCA): Cogeco Communications Inc., formerly Cogeco Cable Inc., is a Canada communications company with a $2.62-billion market cap. Right now, it’s got negative earnings, but over the longer term, this company is looking good.
The company has rallied significantly since the beginning of the year and trades for C$92 now as a result of stronger earnings. Canada’s 4th largest cable company could rally even higher as the company could prove to be a prime takeover target for its larger peers Rogers or Bell, especially with its emphasis on technology.
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Disclaimer for Forward-Looking Information
Certain statements in this press release are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Forward-looking statements in this news release include statements that Carl Data’s custom closed control system can predict events that may lead to critical infrastructure failures up to seven days into the future, that Carl Data can precisely monitor and analyze the vibration of pipelines and predict maintenance of infrastructure which can save millions and prevent possible disasters; that new projects in Dallas and elsewhere will materialize; that revenues could grow substantially, specific revenue forecasts in its business plan, that Carl Data’s technology may be able to prevent disasters resulting from infrastructure failure, that Carl Data’s revenues are expected to rise rapidly, and that the Company’s technology can be adopted for almost any industry.
Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, risks with respect to: that Carl Data’s data scientists may not be able to continue developing breakthrough machine learning abilities into their software, that machine learning and Carl Data’s technology in general may not achieve the expected results and its accomplishments may be limited, that the use of past data may not enable accurate predictions as expected, Carl Data may not establish a market for its services as expected; general economic conditions in the US, Canada and globally; the inability to secure additional financing; contracts that are expected may not materialize or may be cancelled; competition for, among other things, capital and skilled personnel; potential delays or changes in plans with respect to deployment of services or capital expenditures; possibility that government policies or laws may change; technological change; risks related to Carl Data’s competition who may offer better or cheaper alternatives; Carl Data may not adequately protecting its intellectual property; interruption or failure of information technology systems; and regulatory risks relating to Carl Data’s business, financings and strategic acquisitions. The Company disclaims any intent or obligation to update publicly any forward-looking information other than as required by applicable securities laws.
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