Nick Hodge’s ads from the Outsider Club open up with a promise that has been used to sell us all manner of stocks, from content delivery networks to faster WiFi technology to “Internet Royalties”: A faster internet.
And who doesn’t want that, right? Most folks have decent access to broadband now, but we’re constantly reminded that some special folks do have direct fiber optic connections, like those with Google Fiber in Kansas City or a few other towns, and that we’re all missing out.
So what’s the stock that Nick Hodge says can deliver the “Giga Net?” Here’s the intro from the ad:
“It’s 100 TIMES faster than regular Internet…
“Google and Verizon have hired a $1 company to install it in cities nationwide… and it will transform this tiny company into a juggernaut….
“A nationwide rollout is already underway.
“Dubbed the ‘Giga Net’ by technology insiders because it offers speeds of 1 gigabit per second, which is 100 times the speed of a typical broadband connection…
“This new Internet has captured the attention of the entire technology community.”
Who wouldn’t want a piece of that, right? Living on Gumshoe Mountain here in the wilds of Western Massachusetts, I’m afraid I’m stuck with whatever Comcast is willing to sell me for internet access… but hope springs eternal that some kind of faster connection will make it out here to small town New England. Might this “Giga Net” be the answer?
Well, let’s figure out what he’s pitching first. He’d like us to subscribe to his Early Advantage newsletter for $799 — we’ve seen a few teaser pitches from that letter this year, including the “Obama’s Secret Pipeline” spiel about uranium stocks and the “Midas Supergroup” piece about wireless electricity and Energouos (WATT), so it hasn’t exactly been “all winners” so far in 2016 but, well, hope springs eternal.
And the stock he’s teasing is apparently an installer of this “Giga Net” …
“… industry leaders like Google, Verizon, and AT&T are in on this already… and they are investing tens of billions of dollars.
“But here’s the thing…
“They are all relying heavily on one small company to bring it to millions upon millions of homes, businesses, and schools nationwide.
“It’s a unique company that’s rapidly becoming the preferred installer of the world’s new Giga Net.
“Why? Because it can do it faster, more efficiently, and more cost-effectively than anyone else.
“This company is TINY, too — less than $30 million in market capitalization. But it’s already been hired by some of the biggest tech firms in the world to install this new Internet.
“If you have a small portion of your portfolio that you can put to work on a company that could ultimately pay you 10 times your money… I don’t think there’s a better bet in the market.”
So yes, this “giga net” is a veiled reference to “last mile” fiber optic networks — usually referred to as “Fiber to the Home” (FTTH) or “Fiber to the Premises” (FTTP). They leverage the much faster speeds of fiber optic communications by extending those communications not just to regional or neighborhood hubs, as is common now (in cities, at least) but all the way to the end customer, so there’s no slowdown from a coaxial cable connection over that last mile (or whatever).
I would be delighted to quadruple my Comcast bill if I could get a fiber connection to my home, but it’s extraordinarily expensive to lay all that cable to extend the fiber network down each street and to make new connections to each home. Google Fiber is doing it by spending a lot of money and by buying up lots of “dark fiber” that was laid by companies during the dot-com boom but never connected, but that will only go so far — there isn’t “dark fiber” everywhere, and they still have to connect individual neighborhoods and homes.
But yes, the internet is getting more and more congested as more and more data is transmitted, mostly because of the huge bandwidth demanded by Netflix and other streaming video and audio providers… and compression and new technologies for faster connections and transmissions can’t keep up, so there continue to be new fiber connection buildouts and, though some major providers (like Verizon Fios) have stopped investing heavily in new FTTP buildouts, there are still lots of both local and long-distance fiber projects planned and under construction.
And apparently this $1 “Giga Net” company was part of the Google Fiber rollout in Kansas City…
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“Google hired this $1 company to install the Giga Net in Kansas City, Missouri.
“What was the result?
“An absolute EXPLOSION in economic activity…
“Because of the Giga Net, over 121 businesses have either been launched in or relocated to the Kansas City area.”
So what’s special about this “Giga Net” stock? Here’s some more…
“$1 ‘Giga Net’ Stock to Go Vertical
“So what exactly does this $1 company do?
“In short, it has developed an innovative method for connecting millions of homes, hospitals, schools, and businesses to the lightning-fast Giga Net — faster, cheaper, and with less construction disruption.
“It saves clients tons of time and money.
“That’s why this company is rapidly becoming America’s preferred installer of the new Giga Net. Canada’s, too.”
OK, so… some kind of company that installs fiber optic cabling and/or networks, and does it better than others.
Sound familiar? Yes, we’ve looked at this company before — it was teased by Keith Schaefer in mid-July as the “Fat Pitch for 2015,” and we covered that in the Friday File here. The company is a fiber optic installation firm called Lite Access Technologies (LTE on the Canadian Stock Exchange, LTCCF OTC in the US).
And we’re told that Google and Verizon have hired the firm, that it’s also done work to connect Johns Hopkins and Stanford University, among others, and that there’s been a “recent ruling by the FCC” that will accelerate the rollout of the “Giga Net.” That ruling came last Winter, and it essentially gives “equal access” to utility poles and conduits so that telecoms can’t deny Google or anyone else from extending fiber networks using their telephone poles. Hodge says this will accelerate the expansion of the “Giga