Motley Fool Stock Advisor

The Motley Fool's Top Stock for 2014

A massive technological shift is about to go mainstream…

One that will make futuristic-sounding ideas not only possible -- but  also normal:

  • Like a pill you swallow that will email your doctor a complete assessment of your digestive tract.
  • Or a bridge that alerts your state’s Department of Transportation when it has a pothole needing to be filled.
  • Or even a milk carton that orders its own replacement when it’s 75% empty.

I’m talking, of course, about the “Internet of Everything.” And it will be huge.

A whopping 50 billion devices will be wirelessly interconnected and communicating with each other by the end of 2020, according to Cisco Systems. Up from just 10 billion today. 

As if that’s not impressive enough, consider this: “The value at stake of the Internet of Everything is $14.4 trillion,” according to Rob Lloyd, Cisco’s president of development and sales.

To put that number in perspective, that’s just a few billion shy of the entire market cap of the S&P 500!

But Cisco isn’t the only one touting the historical potential of this trend:

  • The Wall Street Journal writes, “In a world of ‘Next Big Things,’ [this] is a very, very, very Big Thing indeed.”
  • The Economist predicts, “It could overwhelm society.”
  • And Harvard Business Review argues, “We are witnessing something like the epic collision of two galaxies.”

All of which means early investors in the companies making this trend possible have the potential to make millions of dollars.

And that’s exactly why I’m writing you today.

You see, the small-cap stock I’m about to share with you “sits right in the center” of this earth-shattering technology, according to a senior Motley Fool analyst. 

But before I share this company’s name with you, allow me a brief introduction.

My name is Andy Cross, and I'm the chief investment officer of The Motley Fool.

This company I’m about to tell you about is named in an annual research report we publish. In this report, my top analysts reveal the companies they believe will be the best performers in the year ahead.

The top stock from last year's report shot up 134%, compared to just 25% for the S&P 500.

Top performers from earlier years have soared even higher -- up 908%, 1,252%, even 1,303%!

So you can see why I'm excited about the company I’ve chosen to share with you this year.

How high will this stock soar?

It's impossible for me to say for sure. But I'm optimistic the rest of 2014 will be excellent… especially for this company.

So to discover its name and ticker symbol and get the full story behind why it's my favorite stock right now, simply keep reading.

The hidden winner behind the “Internet of Everything”

It began with PCs connected to the Internet.

Then came smartphones and tablets -- which enabled us to take the Internet with us wherever we go.

Now we’re mere years away from a time when nearly every device is connected wirelessly, communicating with each other -- and automatically making decisions to make our lives easier.

CalAmp (Nasdaq: CAMP) offers the products and services that make this technological advance possible. And, as such, it sits right at the center of this colossal opportunity.

An opportunity like no other

CalAmp sells products that collect data from devices. It collects the data and transmits it wirelessly to a cloud-based network. Then its proprietary software analyzes the data to use as needed.

Currently, the company focuses on energy, transportation, and government products.

But many other industries are beginning to adopt this machine-to-machine technology, and its applications are virtually limitless. Take the automobile industry, for example: A dealer that financed a car could use it to disable the car if the owner missed a payment. Similarly, an insurance company could monitor the car’s use to more accurately price the risk of insuring the driver.

Regardless of the industry, CalAmp hopes to use this technology to help companies optimize assets, increase productivity, and improve customer experience.

According to CalAmp, its current market opportunity is $3.4 billion -- and expected to cross the $6 billion mark in 2015.

It should have no problem winning new customers as its technology’s possible uses expand: CalAmp has the reputation and know-how to serve both its existing customers and future ones. Which is especially important if those massive growth predictions come true and the market grows fivefold by 2020.

Analysts estimate CalAmp’s sales will double from about $180 million in fiscal year 2013 to $360 million in the next three years. And as profitability and cash flow expand, CalAmp shares should continue to rise.

Motley Fool senior analyst David Meier (who clued me in on this stock) expects the company to earn investors annualized returns of more than 15% from its current share price.   

Of course, no stock is without its risks

CalAmp faces two main risks: competition and commoditization.

Obviously, with as huge a market opportunity as the Internet of Everything presents, CalAmp will continue to face a growing number of competitors.

Fortunately, the opportunity is large enough that it’s unlikely only one company will cash in.

However, it also increases the possibility of commoditization -- causing prices to fall as the competition ramps up.

CalAmp can protect itself against this commoditization threat by continuing to develop customized solutions by working closely with its clients.  

Last, because this technology is so young, there’s a chance CalAmp’s stock will rise simply out of speculation. But don’t let that fool you into selling. You should consider selling only if the company’s momentum starts to wane because it’s not able to generate new solutions.

No matter how you look at it, this is a trend (and stock) you don’t want to miss out on

The Internet of Everything is quickly becoming reality. And it will be built on devices and data.

And it’s CalAmp that has the knowledge and expertise to build useful solutions that help its customers use this data to make more informed business decisions and to make their assets more productive.

So there you have it, my top pick for 2014 as The Motley Fool's chief investment officer!

But if I’m going to be completely honest with you, deciding on CalAmp was not an easy decision.

That's because while I was reviewing all the stocks my team of analysts presented me with, there were many stocks I found attractive.

And so because I'm so convinced that the other stock recommendations will similarly intrigue you -- I'd like for you to get your hands on the FULL report, completely free.

Get 11 more top stock picks -- FREE

I hope you've enjoyed reading this special report as much as I've enjoyed preparing it for you.

Again, my name is Andy Cross, and I'm the chief investment officer of The Motley Fool.

As you probably know, it's our passion at The Motley Fool to help investors like you build lasting wealth.

And that's why I'd like to rush you a copy of “Stocks 2014: 12 Stocks to Outsmart the Market Today” -- the brand-new premium report I selected CalAmp from and that contains 11 more timely stock recommendations from top Motley Fool analysts -- completely FREE.

Set yourself up for massive profits in the coming year with “Stocks 2014: 12 Stocks to Outsmart the Market Today” -- a $99 value -- yours absolutely FREE!

Motley Fool co-founders David and Tom Gardner recently rounded up a team of the nation's top equity analysts to identify the stocks that stand to profit most in the coming year...

After exhaustive research, debate, and number crunching, these top Motley Fool stock pickers have emerged with 12 companies that will position you to profit in 2014. Our report features CalAmp, along with...

  • A power player lined up to actually profit from Obamacare. Although the market has given it the cold shoulder, “this outlook couldn’t be more short-sighted,” according to one top analyst. That’s because it’s perfectly positioned to cash in on two massive trends that are aligning right now in America: health-care cost inflation and an aging population…
  • An under-the-radar oil and natural gas development firm. This company provides state-of-the-art seismic data that makes complex drilling possible -- a service major companies like BP, Shell, and Statoil are ponying up big money for...

You'll discover full write-ups on these companies, plus nine more powerful investing opportunities, the instant you download your FREE copy of “Stocks 2014: 12 Stocks to Outsmart the Market Today.

This is the highly sought-after annual report that has handed investors market-beating returns year after year. In fact, our top pick from 2013 shot up 134% while the S&P 500 rose just 26%. And we’re confident the companies in this year’s report could do even better.

Remember, this is a BRAND-NEW special report -- hot off the presses. And it won't be available for long. So sign up today to get 100% FREE access... and find out exactly why all 12 of these companies are uniquely positioned to bring you knockout profits!

Now, obviously, the high-quality nature of this research and stock advice isn't something I'd hand to just anyone. If this information got into the hands of too many investors, these trades could move against us.

Which is why in return for my sharing this brand-new report with you, I ask only one thing. I’d like to invite you to join me and Motley Fool co-founders David and Tom Gardner at Motley Fool Stock Advisor.

Better yet, I'm going to let you in for a specially reduced rate for new members. An entire year of honest, straightforward advice and stock recommendations for more than 75% OFF!

Here's how it works...

Every month, you'll receive the Motley Fool Stock Advisor advisory letter in the mail. You'll even be alerted by email the moment it's available online, so you can access it instantly.

Each Motley Fool Stock Advisor issue reveals not one but TWO top stocks handpicked and thoroughly researched by David and Tom Gardner that are poised to CRUSH the S&P 500 over the next three to five years.

You'll also get the full rationale behind every recommendation, including any potential risks, so you'll have everything you'll need to make your own sound investment decisions.

Plus, when you accept this invitation for first-time subscribers today, you'll also receive these features, benefits, and bonuses:

Live Interactive Stock Scorecard -- Our scorecard lets you keep track of how we're doing relative to the S&P 500 and how David and Tom are doing against each other. You'll receive a scorecard in each printed issue. And the scorecard is online as well, where it's updated throughout the trading day. You can click through to get more information on all our picks, including back issues, discussion boards, and much more.

Weekly Updates -- We'll send you updates every week so you get all the important information you need to know about right away -- from buying and selling a stock to our analysis of a specific development. You'll also have access to all previous updates on our members-only website.

All Back Issues -- Every back issue of our newsletter is archived on the site, so you can read every recommendation we've ever published.

Discussion Boards -- Where else can you learn about a company directly from the candid experiences of the company's employees, customers, and investors? I don't know of any other newsletter or investment advisor or brokerage house that would welcome this type of frank exchange between its customers. But it's all part of the philosophy here at The Motley Fool.

I've been told by some members that Motley Fool Stock Advisor is like an investment university. It's certainly an active community of smart investors. You can join David and Tom Gardner -- along with your fellow members -- online in spirited discussions. Or you can sit back and simply follow the wealth-building recommendations...

Some advisory services charge hundreds of dollars for access to their "premium" services. But access to our world-class, members-only website... and all its powerful moneymaking resources... is yours today at a DEEP DISCOUNT...

When you join today, an entire year of Motley Fool Stock Advisor costs you only $49. That's a savings of more than 75%.
PLUS, “Stocks 2014: 12 Stocks to Outsmart the Market Today”, a $99 value, is also yours FREE the instant you sign up!

And if you like saving $150 off the regular membership rate and receiving our $99 “Stocks 2014: 12 Stocks to Outsmart the Market Today” report FREE -- HERE'S AN EVEN BETTER DEAL!

If you join me right now through this special offer -- and remember, it's available for only a limited time to new members -- I'll send you a bundle of timely investment reports, valued at more than $87, also free!

How To Know When To Sell

6 Danger Signs in 5 Minutes – (a $29 value – YOURS FREE!) – These quick and easy checks will help you sniff out "creative accounting," fictitious revenue, and other ways companies can seek to deceive their stockholders. These shortcuts will help you cut through balance-sheet chicanery like a laser.

How To Know When To Sell

How to Know When to Sell – (a $29 value – YOURS FREE!) – David and Tom don't believe in selling before a company's fundamentals change dramatically (or you find an even better company). But it is necessary now and then. In this special report, "How to Know When to Sell," they reveal their simple, easy methods for quickly assessing your stocks, based on fundamentals.

Investing the Stock Advisor Way

Investing the Stock Advisor Way – (a $29 value – YOURS FREE!) – What's the secret formula behind Stock Advisor's success? All is revealed in "Investing the Stock Advisor Way." Discover the strategies The Motley Fool co-founders use to pick so many triple-digit winners and help their readers beat the market by 101 percentage points. Inside this special report you'll learn the full details of their seven key investment principles, plus the individual stock-picking rules they follow to uncover their biggest wins. If you're serious about your investments (and who isn't these days?), this is one report you won't want to miss.

These three reports, along with “Stocks 2014: 12 Stocks to Outsmart the Market Today”, are yours free the instant you join me!

PLUS, you can join me at Motley Fool Stock Advisor today with complete confidence:

Your special "keep everything" and "lose nothing" DOUBLE GUARANTEE

Because we stand behind every piece of advice, insight, and recommendation, I'd like to offer you the opportunity to position yourself to make a pile of money with all the recommendations that Motley Fool Stock Advisor has to offer -- WITHOUT ANY RISK WHATSOEVER.

Here's how it'll work...

You can tell me to send your money back, up to the last day of your first month. And I'll give you a COMPLETE REFUND -- NO QUESTIONS ASKED.

The new special report, “Stocks 2014: 12 Stocks to Outsmart the Market Today”... the bundle of three exclusive investment reports... plus all the content you can access on the Motley Fool Stock Advisor members-only website: all the reports... all the recommendations from past issues... all the articles full of proven investment lessons -- ALL YOURS TO KEEP, WITH MY COMPLIMENTS. That's four reports, valued at more than $186 -- FREE!

Of course, this kind of guarantee makes it possible to snap up everything we have to offer and pay nothing.

But that's OK. That's how confident I am in what we have to offer you.

So, let's get started...

But please remember, this is a limited-time offer. I can guarantee you a FREE copy of these reports and “Stocks 2014: 12 Stocks to Outsmart the Market Today”, which includes 11 more companies set to soar in 2014, plus your 75% discount to Motley Fool Stock Advisor -- only if you join me right now AND if you join through this special invitation.

I urge you to start now, because there will never be a better or easier time to position yourself for explosive profits in 2014... and from a trusted source -- Motley Fool Stock Advisor!

Here's to a great investing year,

Andy Cross
Chief Investment Officer
The Motley Fool

Start Now

All Stock Advisor returns as of July 31, 2014. All other numbers as of August 8, 2014.