Today we take a little gander at a pitch from Stephen McBride over at RiskHedge, he’s selling a new service called Disruption Trader (charter memberships “on sale” for $2,000, no refunds), and the sales pitch, as always, includes both a freebie idea and a “top secret” one.
That newsletter is new, so we don’t know much about it yet — apparently it’s the “upgrade” option for his Disruption Investor (which we’ve covered several times), and he says these are simple investments… they might be small caps or microcaps, but not options or more convoluted strategies, he says he’s just looking for “small American stocks that are growing at hyper speeds.”
So what’s being pitched? He leads us into the freebie thus…
“This stock is essentially ‘Twist 2.0.’
“It is, hands down, the perfect stock to own as the tech panic takes hold.
“Just like Twist, it’s creating an entirely new industry from scratch.
“Scientists believe its technology could cure human aging.
“And it’s an earlier-stage company—only 1/3 the size of Twist.”
Before we get too far I should at least tell you what he gives away “for free”, and that’s that this first stock is Quanterix (QTRX). We’ll get into what Quanterix does a little bit more in a minute, but what’s with this “tech panic” he’s talking about? Here’s how he describes it…
“Now, the tech panic is imminent.
“But it’s not a ‘panic’ in the way you might normally think of it.
“It’s a once-in-25-years event that will leave behind giant, overvalued stocks like Tesla and Amazon…
“…and see investors panic INTO a NEW generation of smaller, faster-growing stocks.
“Just like the last three times a tech panic transformed America.”
So that sounds like he’s teasing this phase of development as leading to another “FOMO panic,” where people invest willy-nilly because they’re afraid of missing out on the next big thing… and where some of those “next big thing” stocks actually do change the world have post amazing performance. I’d say we’ve gotten inklings of that already, with some of the crazy moves in electric vehicle stocks last year, but McBride goes on and compares this particular moment to three of the biggest market shifts in history…
“The first wave was in the 1920s, when personal cars were the breakthrough technology.
“The Dow gained about 160% in the 1920s…
“While Mack Trucks gained over 400%… Nash automakers gained over 700%… General Motors gained over 1,200%….
“Then in the ‘50s, the first generation of computers was the breakthrough technology….
“The S&P more than tripled in the ‘50s…
“… and Xerox and IBM gained over 2,000%… and Texas Instruments, a microchip make