TWO PATHS FOR EMOTIONTRAC SHARES TO INCREASE BY 25X
https://dynastywealth.com/two-paths-for-emotiontrac-shares-to-increase-by-25x/
By Michael Markowski
Published Dec 15, 2023, Updated April 30, 2024
EmotionTrac™ has two paths to reach a $1 billion valuation. Either could enable EmotionTrac to become recognized as Florida’s 14th unicorn company. Upon reaching the valuation the price of an EmotionTrac share would multiply by 25 times from the most recent price of $2.50 to $62.50.
Because EmotionTrac has a 100% digital and highly scalable revenue model there exists the possibility for two significant events for the company to occur with Microsoft and/or Morgan & Morgan. Either could result in EmotionTrac instantly reaching a valuation of $1 billion. Read entire report.
EmotionTrac has been gaining traction from selling its patented emotion reading solutions into two of the nine large vertical markets that its solutions address. In aggregate the nine represent a $1 trillion addressable market. The two verticals:
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Legal Case Management
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Advertisement Testing
EmotionTrac emotion analyses solutions read the emotions of consumers for advertisers. The legal solutions application enables lawyers to better select jurors and negotiate larger settlement awards for their clients.
In late 2023 Microsoft became a marketing partner and Morgan & Morgan, the largest personal injury law firm in the U.S. became the company’s largest customer. Based on the valuations for legal technology company financings and multiples for acquisitions Morgan & Morgan itself could propel EmotionTrac to a valuation of $1.4 billion. See below.
Because EmotionTrac’s solutions are digital and fully automated the company is well positioned to experience unrestricted and exponential revenue growth from each of the verticals. Thus, either could enable EmotionTrac to achieve unicorn status. Should both begin to accelerate exponentially, EmotionTrac and its share price has the potential to instead multiply by 50 times and to a $2 billion valuation.
Based on preliminary discussions there also exists the possibility for Microsoft to integrate EmotionTrac’s patented technology which can be utilized to validate generative AI output into its Chat GPT powered, CoPilot and Bing Search engine products. A reading of my 01/09/24 report “AI’s Achilles Heel Exposed – AI Validation Industry Must Emerge ASAP” is highly recommended. Assuming this happens, an argument could be made for EmotionTrac to be valued in the tens of billions. Open AI, the developer and licensor of ChatGpt was valued at $14 billion in 2019 when Microsoft acquired a minority stake in the company. Open AI at 4/30/24 had a valuation of $80 billion. At a $10 billion valuation the price of an EmotionTrac share price would equate to $625.00, an increase of 250 times existing share price of $2.50.
EmotionTrac was discovered after I conducted research on the companies in the table below to find possible common denominators. My identification of the common traits of the four enabled the identification of EmotionTrac. The conceptual stage idea, which possessed similar traits as the four startups, was a finalist for Florida Atlantic University’s best business plan award. I initially recommended the shares (former name, Jinglz) on 11/30/2017. See “Jinglz: Killer App Investing Opportunity” report.
The value in 2017 for a $5,000 seed round investment into the startups in the above table which was made as early as 2008 and as late as 2012 ranged from $8,000,000 to $100,000,000. What was fascinating was the maximum time for the three in which $5,000 increased to over $100 million was nine years. My continuing research of the digital startups resulted in two additional discoveries:
- The ongoing transformation of the global economy to digital from industrial has and continues to provide opportunities for those who are savvy to. To create Dynasty Wealth very quickly. Read my report “Third Transformation for Economy since 18th Century Creating Opportunities to Build Almost Instant Dynasty Wealth”. ( report link: https://dynastywealth.com/third-transformation-for-economy-since-18th-century-creating-opportunities-to-build-almost-instant-dynasty-wealth/ )
- UBER utilized the same perpetual financing strategy that had been first developed and deployed by The strategy enabled both to finance their triple digit growth rates from inception to their IPOs. The strategy has also been utilized by EmotionTrac for all of its financing rounds.
Links below are to videos which explain and cover the perpetual financing strategy:
Please note. I began my career in the capital markets with Merrill Lynch in 1977. Since 2002 my priority has been to conduct research on the outlier events that cause extreme long and short volatility for stocks and also for the indices.
Upon identifying the cause of the event, I then develop an algorithm to predict the next event. My research of Enron’s Financial Statements after its horrific 2001 bankruptcy enabled me to identify the metric in its Cash Flow Statement that could have been utilized to predict its demise. The algorithm that was developed has enabled the predictions for dozens of seemingly healthy blue chips that collapsed. They included the collapses for the five U.S. brokers including Lehman, Bear Stearns and Merrill Lynch that I had predicted in a September 2007 Equities Magazine article. My conducting research on the past to develop algorithms to predict the future has enabled me to predict all of the market crashes since 2007. For more about my methodology and media verifiable predictions click here.
EMOTIONTRAC’S ADVERTISEMENT TESTING SOLUTION
EmotionTrac launched its advertisement testing solution in 2020. The ad testing solution covers the following types of advertisements:
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Television
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Radio
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Billboard
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Digital video
The video below explains how EmotionTrac’s advertisement testing solution operates:
The initial or entry price for the ad testing solution is $600. Since most customers utilize the solution multiple times to test their edits for the same ad, the average spend per customer per commercial created has been $3,000. Notable customers include Royal Caribbean Cruise Lines and Amazon.
Had EmotionTrac’s ad testing solution been utilized to test the infamous Peloton and Bud Light TV ads, the TV commercials would never had aired. Read articles below and view 01:52 seconds video “EmotionTrac would have Prevented Bombs Dropped by the Peleton and Bud Light TV commercials”.
MICROSOFT
EmotionTrac established a relationship with Microsoft in June 2023. The company founded by Bill Gates:
- Is in the exploration process for utilizing EmotionTrac’s solutions to increase revenue for its existing products
- Became a marketer and seller of EmotionTrac’s solutions to its corporate customers in September 2023
The excerpt below, which is from Microsoft’s Annual Report for its fiscal year ended June 30, 2023, provides the rationale for why EmotionTrac quickly went to the top Microsoft’s radar screen:
“Product Revenue and Service and Other Revenue …
Service and other revenue includes sales from cloud-based solutions that provide customers with software, services, platforms, and content such as Office 365, Azure, Dynamics 365, and Xbox; solution support; and consulting services. Service and other revenue also includes sales from online advertising and LinkedIn.” Microsoft 6/30/23 annual report.
The bar chart below contains Microsoft’s total revenue and breakdown of its revenue into products and services for its past three fiscal years. The chart shows that Microsoft’s revenue from products barely increased from 2021 to 2022 and declined from 2022 to 2023. Among the key contributors to enable Microsoft’s total revenue to steadily increase was Services revenue, which included Online Advertising.
Microsoft became especially interested in EmotionTrac because the company’s ad testing solutions address the needs for Microsoft’s large retail store customers including Home Depot, Wal-Mart and Albertson’s, etc. The retail media network advertising revenue that now is or will be produced from the household name brick and mortar retail stores is significant. The potential for growth and an increase in overall profit margins from retail network advertising revenue is real. View 06/24/23 video ”EmotionTrac enables Microsoft to Leverage its Wal-Mart, Home Depot and Albertson’s relationships”, 04:03 minutes
Please note. The world for consumers will soon dramatically change. By the end of 2024, there will be video ads on freezer doors of grocery stores. The margins that Wal-Mart will make from the ads will be higher than the margins for the products that are sold in the freezers. Its why Microsoft’s sees the opportunity to sell EmotionTrac’s ad testing solutions to Wal-Mart and Home Depot, etc. Read EmotionTrac memo, ”The Retail Media Explosion” and view video below about Wal-Mart and Kroger:
RETAIL MEDIA, DIGITAL ADVERTISING’S BIG WAVE SINCE SOCIAL MEDIA (FACEBOOK) & SEARCH (GOOGLE)
The bar chart below depicts that revenue for Retail Media Networks in 2022 was $101 billion according to GroupM. The amount represents 18% of all global digital advertising and 11% of all advertising. Retail media is projected to grow by 60% and to $160 billion in 2027. It’s the fastest growing segment within the global online/digital advertising vertical.
Microsoft has informed EmotionTrac that it intends to introduce the company’s solutions to Proctor & Gamble. The largest consumer products company in the world alone has the potential to become EmotionTrac’s largest customer. Proctor’s annual ad spend budget has consistently ranked among the top five in the world for many years. Proctor & Gamble spent $5.06 billion on advertising in 2022.
The Cincinnati based company instilled corporate discipline to continuously develop and launch new consumer products. From my understanding of how EmotionTrac’s patented technology operates there is a possibility that its solutions could be applicable to test the potential demand for new consumer products that are under development or are to be developed by Proctor and other manufacturers. For this reason, there also exists the possibility for Proctor & Gamble to acquire EmotionTrac.
Microsoft, which generated $218.3 billion of revenue for its fiscal year ended 06/30/23 also intends on becoming a customer. Microsoft is currently analyzing how to best utilize EmotionTrac’s solutions.
The probability is very high that EmotionTrac in 2024 could potentially count four of the largest companies in the world, which are members of the 30 member Dow Jones Industrials composite index, as customers. In aggregate the four reported $1.1 Trillion of revenue over for latest 12 months.
For more color on Microsoft’s Dow blue chip customers view 9/30/23 video:
“EmotionTrac’s Hottest Leads include 3 members of Dow Jones 30 Industrials Index”
To summarize, EmotionTrac is high on the radar screen of Microsoft and especially its online advertising division. EmotionTrac’s fully automated and recurring revenue generating solutions will enable Microsoft’s online advertising division to continue to be a primary growth engine to enable the company to continue to grow at the top line.
With Microsoft as a partner, the revenue from EmotionTrac’s ad testing solutions is projected to grow fast and steadily for the foreseeable future.
Note. Summary Financial Statement data and links to the following available at bottom of report:
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Financial Statements filed with the SEC since 2017
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Patents which have been granted
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videos produced by EmotionTrac about its solutions, intellectual property, addressable markets and customer testimonials
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video clips from “Markowski on the Markets” (MOTM) weekly sessions which explain Retail Media Networks and cover the evolution of Microsoft becoming a marketing partner and customer, etc.
EMOTIONTRAC’S SOLUTIONS FOR LEGAL CASE MANAGEMENT VERTICAL
EmotionTrac solutions, which address the legal vertical, could enable the company to reach a $1 billion valuation much sooner than its solutions that address the advertisement testing vertical. The company commenced the sales of its pre-trial legal solution in 2021, EmotionTrac @ 9/30/23 had 80 law firm customers. View video below which explains how EmotionTrac’s legal solutions work:
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40.0 to 100.0 million cases filed annually
- 73% to 95% are settled and not litigated
- 1.3 million lawyers in U.S.
- 400,000 personal injury lawsuits per annum
- Median personal injury award $31,000
- 64,331 personal injury law firms
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93,000 to 135,000 personal injury lawyers
Below are the testimonials of lawyers who have utilized EmotionTrac’s solutions:
“We have used EmotionTrac on a variety of cases and we’re blown away by the data and results it delivers.”
Nick P. Panagakis – Morgan & Morgan
“This is a must-have solution for all attorneys to use in preparing to settle with opposing counsel or evaluate potential jury reactions in pre-trial research.” “The process was so easy, and results were delivered quickly. “
Nicole Kruegel – Domnick, Cunningham, & Yaffa
“The verdict was $120 million!”
“We had a tight deadline to gather insights, so we used EmotionTrac to pick the jury. It was extremely helpful.”
R.Rex Parris – Parris Law Firm
“I honestly feel that if you are going to try a case and you are not using EmotionTrac you’re committing malpractice.”
Mohamad Ahmad – Kermani LLP. See video of his testimonial below:
Mohamad Ahmad EmotionTrac Testimonial (vimeo.com)
Please note. Studies of actual cases that cover criminal & civil defense and plaintiff lawyers having positive outcomes by using EmotionTrac’s legal solutions to litigate or settle their cases are available.
EVENTS OCCURRING IN 2023, ACCELERATED EMOTIONTRAC’S LEGAL SOLUTIONS GROWTH RATE:
- State of Florida’s Tort Reform
In March 2023 the State of Florida reformed its tort laws. The laws pertain to the lawsuits that can be filed for personal injury. The new tort makes it more difficult for frivolous personal injury and medical malpractice lawsuits to be filed:
“The state a) amended the standard for bad-faith insurance claims, b) outlined the evidence that a factfinder calculating medical damages in personal injury or wrongful death actions must consider.” Source: Holland & Knight
EmotionTrac has solution(s)which apply to both items a) and b) in the above sentence:
- Determine efficacy or merit of lawsuit (item a)
- Maximize potential damages to be awarded to plaintiff (item b)
Due to Florida’s change in its Tort reform laws EmotionTrac became better positioned to become ubiquitous with US lawyers in providing automated case- management solutions. It’s because Florida as depicted below has the 4th largest population of practicing lawyers when ranked among the 50 U.S. states. Florida had been among the few remaining states which had not undergone tort reform.
- EmotionTrac Develops second legal solution
EmotionTrac’s research of the impact that Florida’s Tort Reform bill would have on lawyers and legal cases in Florida enabled the company to become knowledgeable about the tort reform that has been underway for many U.S. states. EmotionTrac determined that there was clearly a need by lawyers for a solution that would enable, especially personal injury, lawyers to determine the efficacy for a lawsuit and also the potential award for damages. The demand for such a solution would be great since the fees for the majority of all personal injury lawyers are incentive based.
To fill the need EmotionTrac developed a case evaluator solution. The new $1,500 solution, which can determine the efficacy for a case and potential settlement award, satisfies the needs for personal injury lawyers who practice in states which have undergone Tort reform. The case evaluation solution enables EmotionTrac to better penetrate the legal case management market and also much faster.
The table below contains EmotionTrac’s addressable markets for its pre-trial and case evaluation legal case management solutions for personal injury lawsuits. EmotionTrac’s $1,500 per case-valuation solution could potentially be utilized for the 400,000 personal injury lawsuits that are filed in the U.S. annually.
The addressable market for the case-evaluator solution is $600 million. Most significantly, the new solution is extremely complimentary to EmotionTrac’s existing pre-trial solution which has an addressable market of $960 million for the personal injury segment of the legal vertical. Both of the solutions make it easier for EmotionTrac to penetrate the entire Personal Injury $1.56 billion addressable market.
- Morgan & Morgan becomes largest customer and expresses interest in enterprise solution
Morgan & Morgan, the largest U.S. personal injury law firm is in discussions with EmotionTrac to provide the law firm with an enterprise solution. Several of Morgan & Morgan’s lawyers have been utilizing EmotionTrac’s pre-trial solution since 2021. Some of them have utilized more than one pre-trial solution ($5,000) to manage a case. A Morgan & Morgan lawyer recently entered into an agreement to pre-purchase $60,000 of solutions at a discounted price of $50,000. The agreement would enable the firm’s 800 lawyers to utilize EmotionTrac’s solutions for all of the firm’s cases. Morgan & Morgan’s key metrics:
- generates $1.7 billion of revenue per annum
- has offices in all 50 U.S. states,
- adds an average of 100,000 new lawsuit clients per year
- has 4,447 employees.
Morgan & Morgan has the potential to generate $39 million in revenue per annum for EmotionTrac. The projection for this amount is based on the following assumptions:
- 10% of Morgan & Morgan’s 100,000 new lawsuits per annum utilize EmotionTrac’s solutions.
- 10,000 new lawsuits per annum are equivalent to 2.5% of the 400,000 lawsuits that are filed annually in U.S. With a total addressable market of $1,56 billion, 2.5% equates to $39 million.
Recently LegalTech startup and early-stage companies have been acquired or have raised significant amounts at high valuations. Thomson Reuters recently acquired CaseText, a provider of software via monthly subscriptions ranging from $110 to $400. The acquisition was for $650 million in cash and was equivalent to a multiple of 36 times CaseText’s $18 million of revenue.
The reason for the high valuations and acquisition multiples for LegalTech startup and early-stage companies is because:
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Lawyers have traditionally been slow to adopt new technologies to incorporate into their case management infrastructure
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The majority, if not all, of the new technologies are SAAS (software as a service) or a subscription to software. Thus, the rationale is that upon a new technology becoming adopted and integrated into the case management infrastructure of a certain number of lawyers, an exponential increase in revenue from providing the product or service to all lawyers becomes very predictable. It’s also because the lawyers will generate recurring revenue for continued access to the software or service being offered by the solution provider.
Those new technologies that are adopted by even a fraction of the total number of lawyers and which steadily gain traction and adoption are well positioned to generate dependable recurring and growing revenue streams. The new legal products and technologies would also be well positioned to increase the base of lawyers who utilize their products and technology.
EmotionTrac’s solutions for the legal vertical provide the company with the potential to reach a valuation of $1 billion in the near future and a valuation of $10 billion over the long term.
Should EmotionTrac derive $39 million of revenue per annum from Morgan & Morgan, the company could potentially be valued for $1.4 billion based on the 36 times multiple that Thomson Reuters paid for CaseText.
EMOTIONTRAC’S AGGREGATE ADDRESSABLE MARKETS = $1 TRILLION
The size of the total addressable markets for advertisement testing and legal case management verticals is staggering. The addressable markets for the other verticals, which EmotionTrac has not yet addressed, and that are listed below are overwhelming.
- Advertising (Brick & Mortar & Digital)
- Legal (Mock Jury & Case Management)
- Films (Movies & TV Series)
- Market Research
- Retailer Media Network
- AI Support
- SME Marketing Services
- R&D for Consumer consumable products*
- R&D for Fashion Industry*
With highly innovative digital and fully automated solutions that address Trillion dollar markets, EmotionTrac’s annual revenue could easily reach several hundred million within a few years and a billion by 2030.
To summarize, EmotionTrac’s ad testing and/or legal case management solutions that address two of its nine verticals could each value the company for a billion in the near future. Should both gain significant traction EmotionTrac could be valued for $2 billion. Therefore, the value of EmotionTrac and its share price has the potential to increase by 25 to 50 times respectively.
Dynasty Wealth and its investor members have made investments in EmotionTrac and at steadily increasing valuations and share prices since 2016. For information on how to invest in EmotionTrac click here.
Dynasty Wealth LLC (DW) has been paid to assist and advise EmotionTrac since 2016. Under the agreement DW has received cash, shares and stock options as compensation for the services it has rendered and continues to provide to EmotionTrac. For terms and conditions see Financial Relations Agreement.
EMOTIONTRAC, INC
To be alerted when an opportunity becomes available to invest in EmotionTrac fill the form below:
Patents issued to EmotionTrac, Inc (formerly Jinglz, Inc.)
Industries disrupted by EmotionTrac:
- Market research $83.9 Billion
- Focus groups, $2.7 Billion
Videos about EmotionTrac & why it is well positioned to increase to a billion-dollar valuation quickly:
- EmotionTrac & AI Industry, 10 minutes, 32 seconds, 6/24/23
- Digital disruptor companies have the potential to get $10 billion valuations quickly, 4 minutes, 1 second, 5/15/16
The table below contains clips from the videos that were produced from the June 24, 2023 to April 27, 2024, “Markowski on the Market” weekly sessions. The videos explain:
- Retail Media Advertising (RMA)
- The rationale for why Microsoft needs EmotionTrac to:
─dominate RMA
─enable ChatGPT/Bing to better compete against Google Search
Financial Statement Summary @ 12/31/2023
Gross Profit Margin on aggregate revenue since inception: 88.4%
Paid in capital: $7,077,821
Shares outstanding: 16,530,000
Market cap: $41,307,500
Complete Financial Statements for 2017-2023 available via SEC.gov.
To Register Investment Interest Fill Form Below
View Markowski On The Market (MOTM) Videos Below
To view clips and specific sections of videos, refer to the MOTM Archive at AlphaTack.
Dynasty Wealth LLC receives cash, shares and options to purchase shares for providing consulting services to EmotionTrac. For terms and conditions see Financial Relations Agreement.