Name: Impinj (NSDQ: PI)

Target: $45

Buy up to: $38

Catalyst: New retail customers adopting the company’s tag based inventory tracking software. Amazon’s new no check out grocery concept is the perfect scenario to use Impinj’s system.

Seattle-based Impinj helps companies keep track of their inventory. The company’s radio frequency platform wirelessly tracks items using its ID tags, readers and software. Impinj’s is one of the coolest stocks I’ve been tracking.

I had planned on recommending the stock soon but a giant jump in the stock due to speculation that it is working with Amazon on its new grocery concept pushed my hand to move now.

Although the stock is up 25% in the past three days, the possibility of working with the retail Goliath should support the stock.  The company is located just a few blocks from Amazon’s corporate headquarters in Seattle and shares one board member with Amazon. While none of this confirms the companies are working together, it helps support the chance that Amazon is trialing its software in its stores.

That said, this is a high-risk name and I suggest subscribers dollar cost average into their positions. My near term target is $45, buy up to $38.

Impinj’s technology is one of the many companies capitalizing on the Internet of Things. Yet it is the only public pure play for investors to capitalize on the trend in retail to fastidiously track inventory.

Impinj is growing rapidly but like most cool tech stocks, reinvests most of its potential profits into sales and R&D. Year to date revenue is up 41% and is expected to grow 46% in the fourth quarter. Earnings have been scarce but are not elusive. The company squeaked out a small operating profit last quarter and should move higher as profits are found on a regular basis.

Target: $45 Buy up to $38