Two Stocks Sleuthed out from Navellier’s “Most Disruptive Innovation in 45 Years” Pitch

What's with this "shocking" discovery from a "Think Tank?"

By Travis Johnson, Stock Gumshoe, June 21, 2019

This is a teaser pitch that we solved about six weeks ago, but I think the solution got lost inside a longer article because folks continue to ask about it… so I’ve pulled it out to talk about for you here today in your bonus Friday article, partly because it also plays off of the same themes we talked about in yesterday’s article.

The headline of the ad pretty much says it all:

“The little-known Washington D.C. financial “think tank” that recommended Intel at 46 cents… Apple at 56 cents… and Google before anyone else, makes a SHOCKING new discovery…

“THE MOST DISRUPTIVE INNOVATION WE’VE SEEN IN 45 YEARS!”

Investorplace Media is not a think tank, of course, but it is a publisher that has built up a decent-sized business over the years, much of it on the back of Louis Navellier’s longstanding stature as an early “quant” in the world of investing punditry and advice. They’re selling the idea of this next breakthrough…

“Recently, Google’s billionaire CEO said it’s ‘more important than fire or electricity.’

“Robin Li, the CEO of Baidu, one of China’s biggest companies, predicted this new breakthrough ‘will have a much bigger impact on society than the internet.’

“And the MIT Technology Review says its ‘changing the world and doing it at breakneck speed.’

“This technology even has the full faith and backing of the U.S. government…

“Just recently, President Trump signed an executive order that calls for his administration to ‘devote the full resources of the federal government’ to help fuel this new breakthrough.”

Those are all references, broadly speaking, to artificial intelligence, or AI — which is really just the evolution of computing, and, depending on your definition, has been in use for a long time (Google’s search results use AI, so does your robotic vacuum cleaner, and the auto-driving assist features in your car… it’s just that we’re not particularly close to the “Terminator” robot phase where machines “think” and act independently).

Then the hinting gets more specific:

“… just recently we uncovered an “off the radar” Silicon Valley company we’re calling the “Artificial Intelligence Master Key.”

The Tiny Device That Will Unlock the AI Revolution

“It’s a company that’s created THE essential AI component…

“What insiders are already calling the ‘secret weapon’ in the AI race.

“In short, it’s the ‘brain’ that all AI software platforms need to function, analyze, and interpret data. It’s known as the “Volta Chip”—and without it, the AI revolution simply would not be possible.

“You see, for AI to work, the technology needs to sort through and analyze TRILLIONS of data points, in fractions of seconds…

“Then make a ‘decision’ in that extremely narrow window of time.”

And that seems clearly to be a pitch for NVIDIA (NVDA), since NVIDIA’s latest GPU architecture, Volta is their next advancement over the prior Pascal architecture. And Navellier has teased NVIDIA as a “master key” stock before, though last time it was hinted at as the “Master Key for Cryptocurrency” (that was a year and a half ago).

That’s kind of surprising as a teased stock now, since NVDA shares get a “Sell” grade of “D” in Navellier’s Portfolio Grader service currently — as they should, since that system is primarily about prioritizing analyst upgrades and estimate increases and similar upward momentum indicators, and NVDA doesn’t have any strong momentum indicators at the moment.

But, of course, selling a newsletter sometimes means using the best story that the copywriter can craft into a compelling sales pitch, not using the stock that is actually favored at that moment by the newsletter editor.

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It’s no big news that NVDA is the most often teased AI stock, though, what I was really interested in Navellier’s latest pitch was his 5G stock — since that didn’t look like it was one of the ones we’ve seen pitched over and over (Nokia, Xilinx, tower REITs, the filter companies, etc.) What’s the 5G “Master Key” they’re pitching?

More from their ad:

“Although the ‘AI Master Key’ is the ONLY investment you need to make a fortune in the AI revolution…

“We’ve uncovered another opportunity to make many times your money from the rise of AI…

“To help you capture this opportunity as well, I have an additional report I’d like to include….

“The second report is called ‘The #1 Investment for the Coming 5G Revolution.'”

5G is certainly connected to the rise of artificial intelligence, if only because the processing power required for AI is so great that it’s much more efficiently done by massive “supercomputers” in data centers — and that only works for real-time work (like, say, self-driving cars) if the communication networks those systems use to talk back and forth to the “brain” in the data center are much faster than is possible now… which, of course, is the promise of 5G: Fast networks, extremely low latency (“latency” is the “waiting for an answer” period… think of the moder