“The Niche Tech Dominator” and other “Top Stocks of 2013” From Consensus Picks

"This micro tech firm is preparing to take over a $723-million cyber security market." -- Sniffing out that pick and the "hot list" of stocks from Manny Backus

By Travis Johnson, Stock Gumshoe, January 24, 2013

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Manny Backus and the folks at Wealthpire have been promoting a service they call Consensus Picks, which they say lets them zero in on the top picks of 800 top trading services and choose the best ones — those that are picked by several services and that they select as the best of that bunch.

There are several well-established newsletters that digest other newsletters and choose favorite picks from the universe of investment advice (like the Dick Davis Digests, the Bull and Bear Financial Report, or Hulbert’s Financial Digest to some degree), so that’s not a whole new concept, but this one is pitched as having an expensive and fancy computer system that’s fed these stock newsletters and then churns out the best ideas for Manny to select from. Wealthpire is an extremely active advertiser (including on this site sometimes, and far more widely in places like the Wall Street Journal and Barron’s), but the actual process is not particularly transparent — that publisher has grown quite a bit to offer a number of investment advisories and newsletters, but we’ve had few subscriber reviews and don’t know their track record at all.

There is still what looks like an older ad up for this Consensus Picks letter, from roughly a year ago if we go by the charts that are included in the ad, and that ad recommended MCP, MIND, CTCM, NM and V — if you had bought and held them a year ago you’d have done worse than the market thanks to bad years from MCP and MIND, but I have no idea whether this is a service that holds for a long time, what buy prices might have been, or, indeed, how they get to their sell recommendations at all.

But still, we like to sniff out ideas from every corner — and folks have been asking about this one, so what are those “consensus picks?”

Here’s how they’re teased:

  • TOP STOCK #1: “The Niche Tech Dominator” – This micro tech firm is preparing to take over a $723-million cyber security market.
  • TOP STOCK #2: “The Sales Generator” – This outfit develops proven tech-based solutions to help other companies boost sales.
  • TOP STOCK #3: “Apple’s Secret Weapon” – Apple depends upon this company to manufacture a part that goes into every iPhone. Company insiders recently scopped up $700,000 worth of company stock.
  • TOP STOCK #4: “Under The Radar Drug Maker” – This company opened up a hot new profit center worth hundreds of millions. Yet the company is valued at about half of its acutal sales.
  • TOP STOCK #5: “Drilling For Big Profits” – This company is poised to profit from the surge in oil exploration as America presses towards energy independence.

OK … so that’s the big tease. How about some clues about these specific picks?

He pushes the first one as his favorite, so we’ll look at that, well, first:

“Top Stock #1: ‘The Niche Tech Dominator’

“This is THE one pick I’m most excited about….

“One of the primary sources of network infiltration and data leaks is… email.

“Approximately 123 million businesses in North America use email to transact business and communicate within the organization. Yet only 13 million of these businesses — or just 10.5% — protect their email correspondence.

“Those millions of unprotected corporate email accounts — and unprotected government and personal email accounts as well — are a gateway for criminals, spies and hackers.

“And THIS company offers the perfect solution…

“In fact, Google only sells this company’s email security products and services.

“Because the company has developed innovations that are second to none. It’s software-as-a-service solution allows the use of Internet-based email for sensitive information exchange. Messages are secured by a proprietary system. Users can then send their email message to ANY email address. The software determines the direct and appropriate means of delivery. So no unauthorized outsiders can read the message or any attachment….”

And then we get a laundry list of hints:

  • “Revenues have grown for 15 straight quarters.
  • New orders are up a stunning 58% for the last quarter of 2012.
  • Profit margins soared to an unbelievable 58%.
  • The gross profit margin is at 83%.
  • The company boasts a 98% customer rate of retention.
  • Approximately 80% of customers sign a 3-year contract.
  • Dominant player in the healthcare, finance and government market.
  • Spearheading new products in the fast-growing mobile market.
  • Strategic partners with Google, Symantec, Code Green Network and Webroot.
  • Analysts agree this stock is grossly undervalued selling at roughly half it’s real worth….

“Compliance initiatives… at the federal and state level like PCI, HIPPA Act, HITECH Act and Gramm-Leach-Bliley Act… all but mandate email security for companies. Healthcare, finance, government and other entities must, by law, implement these new regulations. Or face stiff penalties for data breaches.

“Based on my exhaustive research, this micro tech will dominate the $723-million email cyber security niche in 2013.”

So who is it? Thinkolator sez this must be: ZixCorp (ZIXI), which is a small cap email security company (market cap under $200 million) that I had never heard of before today. Gross margins are not all that meaningful for a technology company like this, since as you can imagine their selling and administrative costs are much higher than the actual per-customer cost to deliver the product, but that “gross profit margin” is at about 83%, they are very much dependent on healthcare, finance and government customers, with health care being by far the largest segment (as you can imagine — secure email is key for privacy, and healthcare information exchange is heavily regulated). The other clues match, too — though the very high profit margin (that 58% number) looks like it was really just for a tax credit in one quarter — their average “real” profit margin is wildly variable by quarter but has recently been in the high teens or low 20s.

They essentially operate a cloud based encryption network for emails, making it easier to send encrypted messages via email so they can’t be read by the unintended recipient, and they say that their solution is cleaner, easier and less of a pain in the neck than existing message encryption. I’ve never used it or any of their competitors, but their presentations make it appear delightful. Of course.

Analysts think they’re trading at about 15X what they’ll earn this year, and that they’ll grow earnings by 20%, so the valuation is reasonable and they are very small, so positive or negative news could easily move the stock quite quickly. They do have a large activist shareholder who was pushing for change, but that shareholder got a couple seats on the board so things seem to have settled down on that front — don’t know what changes they might have wanted, or if they’ll get ’em with their board seats, but this does appear to be a company with a fairly high level of predictability in earnings (thanks to 3-year contracts and pretty high retention rates — the 98% is for customers actually fulfilling the second and third years of their contract, but they say retention is high between contracts, too, and their research indicates that growing numbers of potential clients are looking for this kind of service).

That’s about all I know, so feel free to go forth, researchify, and let us know if you think ZIXI is going to make you rich.

I’ve run out of time here, so I’ll just run down and give some quick answers to a couple of the others and you can provide some background analysis or thoughts if you like … then if the Thinkolator’s feeling stronger we may get the others named later as well:

“Hot Stock #2: ‘The Sales Generator’

“This company provides cloud-based software solutions to increase sales.

“Its products help companies hire the best sales professionals… and… help sales teams to identify and reach decision makers and close deals. In this economy every one wants more sales and this company has developed innovative tools to make that happen.

“The company serves 1,500 customers and more than 2.5-million users in the Americas, Europe, the Middle East, Africa and the Asian-Pacific.

“In the third quarter of 2012, the company signed on 157 new customers. Almost one new customer every single business day of the quarter. Including two of the largest telecommunications companies in the world.

“Company revenues are up 14% from a year ago.

“Making this the eighth consecutive double-digit growth quarter.

“Growth margins hit a record 65%… and… earnings per share are expected to soar by 144% next year. Five top analysts agree company shares should at least double next year.”

Thinkolator sez: This is Callidus Software (CALD)

“Hot Stock #4: ‘Under The Radar Drug Maker’

“The next company on our ‘hot list’ is a potential doozie.

“On the surface, it looks like an established specialty chemicals company.

“At its core, the company sources, markets, sells and distributes 1,100 different chemicals. Some of these chemicals are used by the pharmaceutical industry to manufacture different drugs.

“When you look below the surface, you’ll see something very exciting.

“The company has opened up a new profit center by making its own drugs from its own chemical supplies. This brilliant move resulted in the creation of a subsidiary which… at last count… is manufacturing and distributing 54 generic drugs in the United States.

“For 2013, nine new drugs are in the pipeline.

“Expansion is planned into China, India and the Far East.

“I’m confident this company will experience a big jump in it’s stock value because…

“It sells more than $400 million worth of products annually… but… the entire business is valued at only $264 million. Which means this company is valued below it’s own sales by about 50%.

“Which is why earnings growth expectations for next year are at least 23%.”

This one is, according to the Mighty, Mighty Thinkolator, Aceto Corp (ACET)

So there you have it — feel free to talk those up or down, I’ll see if I can get the other two named for you soon … and share those thoughts with comments below, please!

Leave a Reply

34 Comments on "“The Niche Tech Dominator” and other “Top Stocks of 2013” From Consensus Picks"

avatar

o r
Guest
0
January 24, 2013 7:21 pm

I’ve bought and sold ZIXI a couple of times over the years and made some money in it. I’ve forgotten about it though, so thanks for reminding me about it. GL to all.

dealerdeb1
Irregular
18
August 30, 2013 9:54 am

I bought 100 shares as a spec bet and will hold it because it was so cheap to get in. It has gone up nicely but I doubt I’ll ever get any big payoff

Walter Donovan
Guest
0
Walter Donovan
January 24, 2013 7:35 pm

Also check out Origin Oil (OOIL) oil from algae
CITX-Cellcetix–P53 cancer “Kevetrin”
ISIS-IsisPharm–Antisense tech drugs–1600 patents
IBM–Spintronics

Dave
Guest
0
Dave
January 24, 2013 9:17 pm

The Origin Oil chart indeed looks like it’s heading for the Y-axis origin.

rkatz0
Member
5
January 24, 2013 9:31 pm

@Walter – I don’t understand how these relate to this post, or do they?

rkatz0
Member
5
January 24, 2013 8:58 pm

These look quite interesting, thinking about a half position in each one. Thanks!

Kenton V
Guest
0
Kenton V
January 24, 2013 9:31 pm

Just so you know ZIXI is being sued for patent infringement.

rkatz0
Member
5
January 24, 2013 10:07 pm

I looked at this and the claim looks legit, however, it doesn’t seem to be affecting stock price, hm, this post makes it look real, a lot of the others make it look like hyperbole: http://www.finanznachrichten.de/nachrichten-2012-05/23482967-us-patent-office-re-exam-concludes-rpost-proof-of-delivery-patent-valid-rpost-sued-swiss-post-canada-post-zixcorp-adobe-echosign-docusign-righ-256.htm

hipockets
Irregular
997
January 25, 2013 1:52 am

The link above got me very interested in looking at Rpost.
It must be a privately held company – I could not find a stock symbol. Shucks!

leighton baines
Guest
0
leighton baines
January 25, 2013 9:38 am

(ADBE) they are not private company they are a puicly traded company

Leo
Guest
0
January 25, 2013 6:28 pm

Who isn’t lol but thanks for the heads up.

rkatz0
Member
5
January 25, 2013 10:20 pm

@Leo – Those that are not interested at all (for various reasons). Or those who are thinking about a full position (in one or more) or a double position (greed took over logic already!).

leighton baines
Guest
0
leighton baines
January 25, 2013 9:40 am

A Publicly **

alainbm
Member
1
alainbm
January 25, 2013 10:19 am

For some reason David Colbert news story link is under Adobe stock quote. but Rpost is a private company.

Things are not rosy however:
http://www.ashcroftgroupllc.com/news/announcements/Barton-Victory/

alainbm
Member
1
alainbm
January 25, 2013 10:21 am

Sorry hit reply a quicker than I intended. But apparently they do not make any money what so ever. I came across this on the intertubes with no proof so take that for what it’s worth.

Lew Jackson
Guest
0
Lew Jackson
January 25, 2013 1:12 pm

ACET sounds a lot like Dr. Reddy’s

aterosin
Member
6
aterosin
January 27, 2013 11:08 am

I’m confused…The report said “The top five stocks”. Only 1,2 and 4 were covered. Maybe I missed something about the other two.

advantedges
Member
56
advantedges
January 27, 2013 4:20 pm

G PAR. Clearly, Travis indicated he only had time to decode three of the teased stocks.
Now the challenge for you is to come up with the other two. That’s what this is all about!
P.S. if you are patient, and become a subscriber, maybe Travis will give you the other two!

rkatz0
Member
5
January 27, 2013 4:32 pm

I’m patient, and a subscriber…and I don’t need the other two! 😉

Alan
Guest
0
January 28, 2013 1:58 am

Top stocks for 2013? I think RIMM and NFLX will be the darlings of 2013. The comeback kids, if you will. They gave short sellers a run for their money in the first quarter of 2013, hopefully they’ll keep it up.

webmind
Member
18
webmind
April 18, 2014 1:06 pm

Wow were you ever right about NFLX!!!!

jnginabq
Irregular
6
jnginabq
January 28, 2013 6:55 pm

PLEASE NOTE: OOIL is a repeated “Pump and Dump” participant. There MIGHT be something to the company, but you really want to look at their chart for the last 3 months. According the the PunpandDump site, they’ve run 7 promotions, the most recent starting 17Jan13 and the previous on 19Dec12. So, beware.

skibob77
Member
0
skibob77
January 29, 2013 11:54 am

LOST MY SHIRT IN mANNYS bIO TECH PICKS FOR YR. 2012 i BELONG TO CONCENSUS PICKS YR 2012 SO SO tRYING TO RECOVER MY MONEY FOR ALL bIOTECH INFO bE CAREFUL

advantedges
Member
56
advantedges
January 30, 2013 2:22 pm

Roger
So give us the 2013 Consensus Picks. (current). Does he still like RES?

dealerdeb1
Irregular
18
August 30, 2013 9:55 am

I think Manny Baukus is a scam artist LOL I usually just DUMP his teases

Marty
Guest
0
Marty
February 5, 2013 7:08 am

I think I missed the verdict on Manny Backus and his ‘Consensus Picks’. Is Manny legit and is his system/newsletter worth it? Or jury still out based on lack of evidence/proof of performance? I read online that his IQ is very high, but is his investment IQ and inline with his investment performance, or is he just pushing info? Thanks guys!

RAY
Guest
0
RAY
March 8, 2013 12:44 pm

MANNY BACKUS CLAIMS 250K SPENT FOR COMPUTER OUTPUT CANVASSING 800 ANALYSTS. WHAT A JOKE. HE IS IN LOVE WITH HIMSELF AND MAKING SUCKERS OUT OF HIS SUBCRIBERS MANNY LOVES MANNY.

kristyquail
Member
0
kristyquail
June 30, 2013 2:44 pm
I have not seen any comments from anyone that has purchased the report service- which I checked, is 99.00 a year or 149.00 for 2 years, or add 495.00 to that for life-time- 60 day money back if not satisfied. The only reviews I found were on Amazon for a Kindle book- only 6 of them and all positive. As Travis has pointed out, the stock picks from the previous year were not all winners, but what we do not know- is when was his sell point? Which could have made them a winner. I do not know either. The… Read more »
webmind
Member
18
webmind
April 18, 2014 1:09 pm

Amazing. Why are this guy’s services still such a big mystery over several years??

EMANON
Guest
0
EMANON
May 6, 2015 12:01 pm

I have tried many of Manny’s services ……..all very speculative and not easy to make a profit, but I must admit the service is excellent ! I never had a problem getting my money refunded when I quit his services.
IMHO Bill Spetrino’s Dividend Newsletter is a safer way to making money!

bajapete
Irregular
11
bajapete
October 1, 2015 6:43 pm

As of today CALD is a 4 bagger since the recommendation

James Meredith
Guest
0
James Meredith
May 22, 2016 1:57 pm

Just got another email from Manny, and a very very long video, wanting $194 PER MONTH to show me how to trade Credit Spreads. Sorry but I’m not going for it based on what the reviews I’ve read. If it were $97 I might bite for a month or two to see how it pans out.

James Meredith aka jammer
Guest
0
James Meredith aka jammer
May 22, 2016 2:03 pm

Oh, and in my opinion Rick at Tide Traders is the way to go if you want to learn: how to trade stocks, futures, Fibonacci, Elliot Waves and more. The best part, he’s with you all day, EVERY DAY, and it’s only $30/mo. – less if you sign for a year. Rick can be a pill on bad days and over the top on good days but aren’t we all.

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