Today we’re splitting the Friday File in two — the first part includes a few updates and musings on stocks and sectors that I follow, and you can see that here. The second part is this teaser solution, looking for the answer to a pitch about the “stock of the next decade” that’s being promoted by the folks at Cabot.
So let’s get into it — what is this “stock of the next decade?”
“Just like Netflix, this company is at the center of converging technologies and advancing trends. But instead of profiting from video streaming, this company profits from data mining and from selling that golden information for billions of dollars.”
And they throw in a few specific clues, which the Thinkolator always appreciates…
“As a result, this data mining company has built a 90% market share in its sector and is beginning to reap the rewards—with its stock price rising 272% in the past five years. All thanks to 50% year-over-year sales growth and a whopping 194% year-over-year earnings growth.”
What is this “data mining,” you ask? Here’s Cabot’s explanation:
“Data mining gives companies of all sizes a major advantage over their competitors. That’s because data mining analyzes information from various sources and finds hidden connections and profit opportunities.
“The mined information then allows companies to target consumers and identify marketing strategies. In other words, data mining lets you not only target your customer directly but personalize your advertising to that one customer’s individual wants, needs and desires.
“So instead of advertising that appeals to the masses, you have the ability to advertise directly to your customers on a personal basis.”
More clues about this data mining stock? Here you go:
“our next stock of the decade’s revenues hit $20 billion in 2015….
“The company has exclusive access to the personal information of—hold on to your hat—1.65 billion people.”
And in case you aren’t already drooling…
“… this company’s breakthrough technologies will revolutionize the big data and analytics industries just as Apple revolutionized the smartphone, tablet and music industries…
“a $10,000 investment could grow into a $1 million stake if you’re prepared to hold on to it for the next 10 to 15 years”
That sounds lovely, right? How about one more bit of clueishness? Here you go:
“Twenty of the world’s shrewdest institutional investors and mutual fund managers see Netflix-like gains ...