The headline of the latest ad for Bull and Bust Report was pretty much all we needed to predict that a bunch of readers would ask about this ad:
“How America’s 5G Revolution Just Opened a $12 Trillion Reservoir of Cash For Investors Everywhere
“Right now, THREE unknown companies have a stranglehold on the entire 5G market…
“And investors are licking their chops over the chance at gains of 1,000%… 2,000%… even 5,000%”
[This article was originally published on June 19. It has not been updated or revised, just re-posted here to help answer reader questions.]
We’ve seen plenty of 5G teasers over the past year or so, of course — that’s perhaps the most obvious and well-telegraphed technology transition in history, mostly because investors now have the past examples of the 3G and 4G/LTE transitions in mobile technology to look at for guidance… and have had the experience of seeing what a huge difference the mobile internet has made in the world in just 5-10 years, which makes the hype about “100X faster” connections from 5G all the more compelling and relatable.
And the hype in this ad is similar to that used in dozens of other ads… but here’s just a taste:
“It’s the greatest groundswell of technology the world has ever seen.
“As Qualcomm CEO Steve Mollenkompf says, ‘5G will have an impact similar to the introduction of electricity or the car, affecting entire economies and benefitting entire societies.’
“This is bigger than the dot-com era, the oil boom, and even the Industrial Revolution.
“So what does this mean for you?
“It means you have the unique opportunity to get in on the 5G revolution before it becomes a $12 trillion industry in the coming years.”
5G has the potential, as the infrastructure is built out and the devices created and sold, to make possible huge changes and advances in health care, transportation, entertainment, manufacturing… you name it, there’s some hope and some hype for that sector.
I don’t argue with any of that, though I will just cautiously remind you that the 5G infrastructure buildout and the adoption of this technology is not going to be a one or two year story, most people won’t be using 5G in 2020 or 2021… we’re really still just getting started, and this is more likely to be a 15-20 year story.
Which is not a bad thing for those investing in the future of telecommunications and mobile networks, it just means you should go in with some patience and get those daydreams of 1,000% gains out of your head first. 1,000% gains come from either surprise changes or a combination of luck and patience — big changes are probably coming, but everyone in the industry sees them coming, so it’s not going to be a surprise. Which means it will take time and investment to get to those big changes, and some luck and patience to pick the right investments and stick with them to hope for those big long-term gains.
So what are those three companies? We get into the the specific hints now…
“Even though 5G devices are ready for shelves the minute the networks are rolled out…
“And even though we’ve seen test networks pop up in various cities all over the globe…
“And despite major media outlets teasing how close 5G is…
“None of this will come true if not for THREE companies I’ve found that are secretly in absolute control of the entire 5G race.”
Ooooh, absolute control! That sounds delicious!
What’s he talking about? More from the ad:
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“… for 5G to be a success, there is one important component that 5G absolutely cannot become a reality without.
“And I’m not talking about computer chips, modems, or anything like that.
“I’m talking about cell towers.”
Ah, so now we’re probably in the territory where we don’t even have to pull out the Thinkolator to know where DeHaemer’s headed… there are, after all, only three cell tower companies of meaningful size. Is he just teasing those?
Let’s get a few more tidbits:
“Verizon, Sprint, T-Mobile, and every other carrier are all reliant on these three companies.
“If these companies went under, there wouldn’t be any cell networks.
“This is why cell carriers continually spend 20%–30% of their revenue on cell tower leases.
“It’s, by far, their most significant operating expense.”
Well that’s silly… yes, these companies have difficult-to-replace assets, but the assets exist as distinct from the companies — much like a shopping mall continues to exist if its owner “goes under.” And the big tower companies are essentially financial firms — they were created when AT&T and Verizon decided they could use “financial engineering” to get those expensive assets off their balance sheets and pay rent on them instead of paying for building, maintenance and depreciation. If these firms fail, someone else will step in and operate the towers and other cell sites they currently own.
And, of course, there are a lot of tower owners in the US. The big wireless telecom companies still own a lot of them, like Verizon and AT&T, and many are privately held or owned by companies that would seem a little surprising (there are quite a few cell towers on railroad right-of-ways, for example, that seem to be owned by the railroads). But there are really just three companies that come to mind when it comes to “cell tower companies” — let’s see if those three are the companies DeHaemer is touting, or if there’s a surprise somewhere. On to the clues!
“… the upgrade to 5G is going to cost the major carriers $125 billion over the next two years.
“And by 2025, that spending will hit an astronomical $326 billion.
“It’s a TON of money, but any telecom that wants to stay relevant will certainly shell out the money.
“That means the three companies I’m sharing with you are about to receive a massive tidal wave of cash….
“Three Stocks to Play for 1,000%+ Gains”
And the specifics…
“… the three companies I’ve been pounding the table about own an astonishing 80% of the cell towers in the United States.
“They’ve become what amounts to the ‘landlords of 5G.'”
And then we go company by company…
“5G Profit King #1: The Fastest Gro