Grant Wasylik took over the newsletters that were started by Frank Curzio over at Uncommon Wisdom (one of the Weiss Research publication groups), and he’s out with a new ad for the Adventure Capitalist “back end” newsletter.
That letter is one of the many “upgrade” newsletters that most publishers funnel you toward — if you subscribe to a “front end” or “entry level” newsletter from any of the substantial publishers, ponying up your $49 or $99 a year, you’re going to be gradually pushed to sign up for their shinier and fancier letters. Most publishers have a “back end” letter or service that’s priced around $5,000, but they rarely actually promote it at that price — in this case, Adventure Capitalist is, again, priced at $5,000 but currently being sold for $1,997.
Publishers tend to use these higher-priced letters to recommend small caps, private placements, options, highly specialized sectors (biotech, mining, etc.) or other volatile or illiquid investments — the kinds of investments that you can maybe tell 500 or 1,000 people about without destroying the bid/ask for that stock, but not 100,000 people.
The intro letter comes from publisher Brad Hoppmann, who gets us interested with this…
“Grant has now uncovered something so groundbreaking, so incredible, he believes it could blow his 2016 results out of the water.
“It’s a single company that is based in a small country most investors are completely ignoring …
“A firm that has been quietly reinventing itself and is ready to explode higher on the back of the biggest technological trend happening in the world right now …
“A $10 stock that, according to simple chart analysis could easily rise 600% and then higher still.”
So what is this stock that’s being used as bait for a $2,000 subscription? Let’s hear a bit from Grant Wasylik and see what clues we can parse out…
“… a nearly-failed former cordless phone manufacturer has suddenly found itself on the cutting edge of the fastest growing technology in the world today, and could soon become …
“The #1 Company in the New Silicon Valley.”
And they hint around about this “New Silicon Valley” notion for a while, but do eventually “reveal” that they’re talking about Israel, which is indeed home to a huge number of US-listed (and other) tech companies.
More enticement from Wasylik…
“This Is Like Catching Big Fish in a Small Pond
“Israel is a small pond with tons of big fish swimming around, and right now only a few of the world’s brightest investors are dropping their lines.
“This anomaly won’t last. More and more people will see the value in Israel and in the next few years it will become overfished.
“I plan on being on the fishing boat with the likes of Warren Buffett, Bill Gates, Jeff Bezos, Michael Dell, and Mark Cuban before everyone else shows up to the party.”
So… what else do we get by way of some snippet-y clues?
“This company was founded in Israel and still maintains its R&D operations there, but it now has dual headquarters in Israel and California.
“In fact, its growth model is now so aggressive it has opened branch offices in every major tech hub around the world including Hong Kong, Japan, S. Korea, and Germany.”
And an abbreviated version of the “back story” behind the company:
“… back in the 1990s, the company made wireless phone components that were among the best in the world.Are you getting our free Daily Update
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“Then, the rapid growth of the cellular phone market hit the company hard.
“Wireless phones were suddenly obsolete….
“Now they have a new suite of products that are an indispensable part of the biggest tech boom of the 21st century — namely, the Internet of Things, which is rapidly linking our household items through the web … allowing us to control these items remotely … and creating new ways of living that would have seemed straight out of the Jetsons just a decade ago.”
And then the same argument that any IoT-related stock gets these days — there will be umpteen bajillion internet-connected devices (50 billion is the number Wasylik uses), so whoever makes the important guts of those devices is going to be swimming in gold coins like Scrooge McDuck in his Money Bin. In this case, it’s the “voice recognition” part of the Internet of Things — think Siri and Alexa, only I won’t just be your phone and your virtual assistant listening to you, everything will be listening. Your toaster, your smoke alarm, your car keys. Just not your children or pets (we’re not talking miracles here, just technology).
Here it is in Wasylik’s words from the ad:
“… with 50 billion new devices set to join this trend just over the next few years, it’s easy to see what will happen to the company that creates the very components that allow the IoT devices to communicate with each other PLUS the software that makes clear voice recognition possible.
“In other words, it’s easy to see why the company I’ve been researching could go from a $200 million market cap to a billion or two in no time flat … handing current investors anywhere from 600% to 1,200% without even breaking a sweat.”
He lays out a few “iron-clad reasons” why he thinks this company will be a tech superstar… experienced management, good balance sheet (half the market cap is cash), “the right strategy” with the Internet of Things focus, and a strong growth rate (their IoT revenue apparently rose 83% in 2016, faster than the sector).
So that’s interesting… what is the actual stock?
Thinkolator sez this is DSP Group (DSPG), which is indeed an Israeli company with a history of developing chipsets for cordless phones and a growing business in VoIP phone technology and in chips for mobile and “home automation” devices (and a second headquarters in San Jose, California). This is how they describe themselves:
“DSP Group enables converged voice, audio, video and data connectivity across diverse mobile, consumer and enterprise products – from mobile devices, connected multimedia screens, and home automation & security to cordless phones, VoIP systems, and home gateways. Leveraging industry-leading experience and expertise, DSP Group partners with CE manufacturers and service providers to shape the future of converged communications