December 21 2017

IP (CSE:IP) An Undervalued Blockchain Solution to Advertising and Augmented Reality

By: Jason Clegg, Nov 30/17

I finally got a chance to watch the Imagination Park Entertainment Inc. (CSE:IP) presentation that officially launches and demonstrates the new XenoHolographic product lineup. My mind is just absolutely blown, it is truly tough for me to focus on writing this one word at a time right now because my mind is racing trying to wrap my head around what I just saw and how huge I believe this company could get be in a real hurry. I believe this is a bold yet accurate statement for the following reasons; this is the first time I’ve seen any Canadian companies doing this, they have the products ready NOW, and they are also the first to leverage blockchain technology to increase accuracy in the holographic advertisement sector via a proof-of-play token called XenoToken. These guys are creating amazing stuff and no one has even heard of them, well wake up people.

So the Joint Venture between IP and IK (Interknowlogy, a private technology company) has launched a lineup of software and app technology that will bring Augmented Reality content and experiences to your smartphone in the near term and to AR/MR headsets down the road when the big tech companies (Apple, Samsung, Microsoft, Dell, Asus and so on) begin releasing hardware that will support AR content. The focus here is the AR app for your smartphone because that is what is here and now.

It is important to understand that this technology has been in development for over two years behind the scenes by Interknowlogy, who demonstrate incredible foresight into where the technology sector would be going, and due to the lead time of development they’ve created not just an app, but an entire ecosystem that encompass a vast amount industries and sectors. Note all the different Xeno products and applications.

Xenosidekick for iOS and Android, why are these so awesome? Because both iOS and Android have released updates and smartphones with AR capabilities already, so the number of AR capable devices currently in circulation has to be in the hundreds of millions as we speak. Through the XenoSidekick App, you will be able to see a holographic experience through the phone you carry in your pocket. An example of a AR experience for your smartphone would be the Pokemon Go game, very popular as it was way ahead of its time and just an early example of what’s to come from the sector.

https://www.cnbc.com/2017/11/07/google-augmented-reality-will-be-on-hundreds-of-millions-of-android-devices.html

https://uploadvr.com/380-million-iphones-are-arkit-compatible/

Why is this important? Because through other products in the Xeno ecosystem retailers will be able to hire the JV to create holograms, store them and help the retailer display the holograms in strategic locations and even customize them for individuals. So lets say your strolling down the street, and you receive a push alert on your smartphone suggesting there is a holographic experience nearby, you don’t need anything but your personal device to then view this experience, and maybe the retailer gets to make a sale, maybe not. Nevertheless, VERY cool.

Here’s where it gets interesting, we’re all very aware of the huge buzz surrounding blockchain and it’s endless applications in the technology sector. We have companies delivering blockchain solutions to financial institutions, we have blockchain being used to provide security to public and private sector companies and of course blockchain used to verify cryptocurrency transactions between users. What Xenoholographic is doing with blockchain is very unique and I feel like investors are missing the big picture here. They’ve created XenoTokens, which allows advertisers to receive a detailed account of who has viewed the (holographic) Add, where it was seen, and for how long through a concept called proof-of-play. They will also know whether a person or a bot viewed it, which is important because retailers will be able to adapt or change their techniques, knowing exactly what is working and what is not. This could also save advertisers money because they aren’t paying for all the extra clicks and views that fake click bots make and subsequently charge for. IP through XenoTokens may be set to fundamentally change the advertising market as a whole, consider that it is potentially a trillion dollar industry.

“To top it off bots inflicted $7.2 billion in fraud last year.”

http://chiefmartec.com/2017/07/blockchain-technology-will-revolutionize-advertising/

http://adage.com/article/deloitte-digital/augmented-reality-marketing-s-trillion-dollar-opportunity/309678/

Interknowlogy built the first blockchain technology for the largest technology company in the world, they are not allowed to name this company due to non-disclosure agreements. Interknowlogy boasts that they have built software for many of the Fortune 1000 companies and one of the ones you would have actually seen was the program used in the 2017 presidential elections, it was the map used to show in real time all the states and which party was currently in the lead.

How will the company make money and where will they make it? They are targeting industry verticals in the enterprise software markets; Retail, Health Care and Entertainment. The revenue structure is shown below. 

What are we expecting from the company in the near term? We know the boys have been pitching like crazy throughout China and they did elect Ben Lu to the board of directors so it’s suggestive that something could come out of China anytime. I also picked up a hint from the presentation that Bully Mech was going to be the next blockbuster of the next summer (Tim Huckaby said it). It does explain why there was such a focus on Bully Mech in the demonstrations, which I think would be really cool.

When compared to their peers in the blockchain sector they are undervalued. I suggest this because they have products and services ready to go, a joint venture with 19 years of advanced technology experience, a large catalogue of intellectual property that’s being pitched to film and productions studios around the world. The blockchain sector is on fire and many of its peers are on absolute tears, NetCents (NC:CSE) $4.09 as of Nov 29/17, Glance Technologies Inc. (GET:CSE) $2.68 as of Nov 29/17, BTL Group (BTL:TSXV) $7.74 as of Nov 29/17. I’ve grouped IP with these other companies because all these companies are at advanced stages in the execution of their business plans, and have their own unique blockchain solutions to their own unique sectors. Given IP closed at $.69 on Nov 29/17 there is a lot of upside from this current share price.

There was a recent announcement of a deal done between furniture giant Williams-Sonoma and a an AR startup company called Outward, notice they are only a startup and were purchased for a whopping $112 in cash a couple of weeks ago. IP is well into executing its business plan and with only a market cap of $43.2 Mil, again I suggest there’s lots of room for upside.

https://techcrunch.com/2017/11/16/williams-sonoma-inc-acquires-ar-3d-imaging-startup-outward-for-112m/

With regards to trading, I’m still learning the technical analysis aspect of trading but when looking at a 1 month chart, the chart suggest the stock is in a bullish upward trend, whenever the stock dips, buyers tend to come out and buy (note the majority of wicks hang from the bottom of candles). Consolidation happens quite quickly due to the fact that there are relatively few shares actually free trading with a vast majority held tight.  When you compare the chart to the diagram below there are several similarities. The large wick that hits $1 in my opinion is A, $.60 is B, we are currently trading in the C range and we are well positioned for another breakout given the right catalyst. 

Now that the products are launched and the company is in sales mode it could really be anytime that they begin signing deals. With a reputation like Interknowlogy one must assume that past business relationships could be suggestive of where they will seek new business opportunity. The fact that they can put a hologram in your living room through your smartphone is incredible. They’re the only Canadian company with exposure to the industry, and with lots more innovation coming down the pipeline I feel like it’s just at the beginning of the journey.

 

http://www.xenoholographic.com

http://www.imaginationpark.com

Good Luck to All and DYODD

(note my technical analysis must not be taken too seriously) 

Reference :

IP (CSE:IP) An Undervalued Blockchain Solution to Advertising and Augmented Reality