Resonant: Your Backdoor Play to 5G Profits
“Hello?… Yes, this is him.”
When you answer your phone, you probably don’t think about the near-miraculous way that call got to you.
On a landline, a long-distance call has to navigate thousands of miles of cable, making its way to your exact phone.
It’s even more amazing how our cell phone calls go through.
There are over 300 million wireless phones in America… and we are surrounded by radio waves from every device imaginable.
Your phone has to constantly monitor those waves, determining which ones are meant specifically for you.
So the hardware and software that makes this possible is critical. And with all the data that 5G is set to unleash, these filtering devices will need to work harder than ever.
A mistake could be more than costly — it could hand-deliver a user’s personal information to the wrong people.
That’s why more and more phone manufacturers are turning to a company that offers a low-cost solution to the filtering problem.
Right now its stock is trading at bargain prices… but I expect it to take off as smartphone makers adjust their products for a 5G world.
Here’s how you can get in on the 5G profits… for just under $5.
Smoothing the Path for Wireless Tech
5G promises tremendous improvements to the world as we know it…
From video streaming to healthcare, the new network will deliver data faster than ever before.
But your current smartphone isn’t equipped to handle all that data. And as we speak, device makers are in the process of building 5G-compatible phones for this new world.
While all smartphones… whether 4G or 5G… require filters to navigate good and bad signals, new 5G phones will demand more advanced filters specifically designed to process the influx of data.
Not to mention, there will need to be a lot more filters per phone — over double the amount needed in smartphones now.
The 5G revolution simply can’t progress without these new filters, putting pressure on manufacturers to pump them out fast.
The problem is, the process takes months of trial-and-error to get the complex design just right.
That’s where Resonant Inc. (RESN) comes in.
The company designs the filters needed in wireless devices… but its unique process is what puts it apart from other filter designers.
Resonant doesn’t physically make the filters. Instead, it licenses out its designs for fees and collects royalties on the products.
Where the old trial-and-error in-house design process might take months… Resonant runs its designs through its simulation software, which cuts the time down to only a few weeks.
And with 5G on a real time-crunch, that cutback is key to getting the technology in the hands of consumers.
So it’s no wonder more chip manufacturers are turning to Resonant to deliver ready-to-go filter designs.
Over the next year or two, new smartphones will be officially online and many will be using the filters Resonant has designed.
That means Resonant is looking at a heavy flow of profits as soon as 5G phones are rolled out.
Not to mention, the company revealed in its latest earnings call it would possibly be accepting a deal with fellow 5G supplier Murata.
That’s right, RESN is the subject of some big takeover talks.
Resonant’s small $85 million market cap is an easy target for a multibillion-dollar company like Murata.
And the 5G space is perfect for buyout action… so I wouldn’t be surprised to see a deal inked very soon.
Needless to say, big things are in store for Resonant — and we’re just getting started!
And the Winner of the 5G Race Will Be…
To profit off 5G, most investors are focused on big telecom companies like Verizon or device makers like Apple — the ones currently building out 5G networks and technology.
But the 5G boom is really fueled by small suppliers like Resonant.
It’s not the only chip company in the mix… but its solutions will be critical to winning the 5G race.
And because it’s still relatively unknown, you can grab shares while it’s cheap.
But don’t expect that to last long!
Like I pointed out, Resonant is small, but with a takeover on the horizon and the 5G revolution fast-approaching, this company has big things still to come…
[Editor’s Note: When buying small companies like Resonant, use only the speculative portion of your portfolio. And take advantage of limits to ensure you don’t pay too high a price.]