“The Downfall of Detroit: David Gardner’s Most Electrifying Stock”

Friday File look at a Fool teaser

By Travis Johnson, Stock Gumshoe, January 14, 2013

This is the Friday File, our missive to our favorite members (yes, we mean “the people who pay us”), so we can be a bit more up front with you and not make you sit through the entire spiel (though we’ll give you a full spiel-look as well) … David Gardner is now aggressively touting the electric car company Tesla (TSLA) as an “electrifying” stock that will be the downfall of Detroit.

So there you go … if you’ve got a busy day, you can move right along with your answer and do as you like. I did have two other short pieces over the weekend that had been intended as part of the Friday File, one on a Brazilian sale that I’m planning and one regarding our favorite casino stock, but I’ll leave those separate in the interest of length, just click those links if you’d like to see those notes.

For the rest of us, let’s take a look at Gardner’s pitch — it’s in a teaser ad for his Rule Breakers newsletter, which to their credit has been steadfast in its approach since the start: David Gardner looks for stocks that are first movers in fast-moving industries, that are growing rapidly, that confuse or defy the conventional Wall Street analysts and consistently get referred to as “too expensive” … and sometimes he comes up with huge winners. This is not a strategy that’s great for the super-concentrated investor, or for the faint of heart, since the losers tend to pile up as well … but if you get enough “ten baggers” then the stocks that languish or drop by 50% seem less important.

So what will this one be, a rule breaker that wins and rules the day, or a company that broke too many rules and gets chewed up and spit out by the economy?

The ad that teases this stock starts us out with a “cloak and dagger” story of a technology intentionally hidden from the world:

“In the 1990s, General Motors desperately tried to conceal an accidental stroke of genius…

“You see, in a top-secret engineering lab, they had mistakenly stumbled upon a technological breakthrough that could’ve destroyed the company if left unchecked.

“That’s not something you hear every day when talking about a car company…

“But if this technology fell into the hands of another carmaker, it possessed the potential ...

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