Utilizing CHAOS Formula to Find MicroCap Disruptors with Chris Wood, Chief Investment Officer of RiskHedge
Jun 20, 2023
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Chris Wood, Chief Investment Officer of RiskHedge, shares his CHAOS formula and applies it to finding disruptive MicroCap companies. Topics include: challenges of raising capital for MicroCap companies, Black Sky Technology's expertise in satellite imagery and analytics, the disruptive ideas of Black Sky and Beam, EV Arc's innovative electric vehicle charging solution, OmniQ's Safe City Initiative and AI technology, and an exploration of RiskHedge's offerings.
The CHAOS Formula (Change, Hype, Acceleration, Ownership, and Size) can be used to identify disruptive companies with exponential growth potential.
Black Sky Technology is disrupting the satellite imaging and analytics market with its EV arc solution, offering actionable insights to government and commercial customers.
BEAM is revolutionizing the EV charging infrastructure market with its off-grid EV arc solution, providing a fast deployment, low cost, and scalable charging solution.
Deep dives
Disrupting satellite imaging with Black Sky Technology
Black Sky Technology is disrupting the satellite imaging and analytics market with its EV arc solution. The company owns and operates its own constellation of small satellites that capture 90% of global GDP within their field of view. Its technology is used by government and commercial customers for tracking changes, monitoring strategic locations, and analyzing events. The company's spectra AI platform processes the satellite data and provides customers with actionable insights. With a strong revenue growth and a pipeline of potential orders, Black Sky Technology is positioned for success in the EV charging infrastructure market.
BEAM: Revolutionizing EV charging infrastructure
BEAM is revolutionizing the EV charging infrastructure market with its EV arc solution. The EV arc is a self-contained, off-grid charging solution that generates and stores electricity using solar panels and batteries. It can be set up in minutes without the need for construction or electrical work. The company's fast deployment, low total cost of ownership, and scalability make it a game-changer in the industry. With a growing revenue and a focus on custom EV infrastructure jobs, BEAM is well-positioned to capitalize on the increasing demand for EV charging solutions.
Using the chaos formula to identify disruptive opportunities
Chris Wood, Chief Investment Officer of Risk Hedge, shared his chaos formula for identifying disruptive opportunities. The chaos formula stands for change, hype, acceleration, ownership, and size. By evaluating stocks based on these criteria, investors can identify companies with the potential for exponential growth and disruptive potential. Wood highlighted companies like Black Sky Technology and BEAM as examples of companies that meet his chaos formula criteria and have promising prospects in their respective industries.
Use of AI and Satellites for Trading Commodities
The podcast episode discusses how a trading company utilized AI and satellite technology to gain an advantage in the trading of commodities, specifically coal. By tasking satellites to track important stockpiles of coal and analyzing images to determine the quantity of coal and its movement, the company was able to make informed trading decisions based on this information. This application of AI and satellite technology provided the company with a unique edge in the market.
Black Sky Technology and its Potential
The podcast mentions Black Sky, a company specializing in satellite imagery services. Initially, the company did not meet all the criteria outlined in the chaos formula, but recent developments, such as securing big contracts with NASA, the Army, and foreign defense ministries, have increased its prospects. Black Sky's satellites, which are relatively low-cost compared to traditional models, have the capability to capture high-frequency imagery and analyze it using AI. With a market size worth billions and a focus on government contracts, Black Sky positions itself as a leading player in the satellite imagery industry.
My guest on the show today is Chris Wood, Chief Investment Officer of RiskHedge. Founded in 2018, Chris and his team at RiskHedge run a newsletter helping subscribers anticipate and profit from the biggest disruptive trends shaping our world. They look at opportunities everywhere, but Chris has an affinity for MicroCaps, where he can deploy his own proprietary CHAOS formula to find disruptive companies within the MicroCap ranks. In our conversation today, Chris shares what his "CHAOS Formula" is (which stands for Change, Hype, Acceleration, Ownership and Size) and applies that formula for a few investment ideas he's looking at. Chris also recently attended our conference, the Planet MicroCap Showcase in Las Vegas, as well as LD Micro, where at both, he did a ton of meetings with management teams - so, I wanted to get his take on the message he's getting from CEOs.
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Planet MicroCap Podcast is on YouTube! All archived episodes and each new episode will be posted on the SNN Network YouTube channel. I’ve provided the link in the description if you’d like to subscribe. You’ll also get the chance to watch all our Video Interviews with management teams, educational panels from the conference, as well as expert commentary from some familiar guests on the podcast.
The Planet MicroCap Podcast is brought to you by SNN Incorporated, The Official MicroCap News Source, and the Planet MicroCap Review Magazine, the leading magazine in the MicroCap market.
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