McCall’s “Crypto Bank About to Take Off”

What's the "Microcap Millionaire" stock hinted at in ads for Early Stage Investor?

By Travis Johnson, Stock Gumshoe, February 14, 2020


It’s Friday and I’m mostly working on my Friday File and Annual Review for the Irregulars, but I couldn’t resist a quickie answer for you on this latest Investorplace pitch… Matt McCall is selling his Early Stage Investor service ($1799, nonrefundable) with a spiel about eight life-changing microcaps in his “Microcap Millionaires Portfolio.”

He gives away one of them for free in his “presentation” (that being Inseego (INSG), which we’ve covered many times), but also hints at a “secret” one in recent emails.

And that’s where we come in — what’s that other one he hints at?

Don’t worry, I’ll spare you all the big picture stuff and the “microcaps are extra-risky” comments and the teeth-gnashing about “nonrefundable” payments and how much is reasonable to spend for investment guidance, we’ll just get right to the answer.

Here are the clues he drops:

“This recent IPO is one of the first banks ever to specialize in digital currencies.

“This is a big deal, because traditional banks are keeping their doors shut to cryptocurrency and blockchain businesses…

“Which creates an enormous first-mover advantage for my new investment recommendation.

“You can buy a single share of this crypto bank for $16 right now… Its market cap is just $300 million.
But my research indicates it could soar to $75 per share within the next 24 months. That’s a nearly 5X gain.”

So who is it? This must be Silvergate Capital (SI), which did indeed go public very recently, in November, and which is trading right around $16 (after going public right around book value, at $12 a share).

As I said, all I’ve got here is a quickie answer for you — I don’t know much about Silvergate, other than that it’s a regular commercial bank but also, more importantly, provides financial services to cryptocurrency companies, including exchanges like Coinbase.

I don’t know anything else about them, really, other than that they are trading at about 1.3X book value, which, on the face of it, is reasonable for a small commercial bank.

This one is tiny, with a market cap of about $300 million, and it does not have any meaningful institutional shareholders as far as I can tell — I don’t generally like to buy IPOs in their first few months, partly because there’s so often pressure on these stocks around the time that the insider lockup period expires (that would be May 5), but perhaps you’ll find it interesting. Enjoy!


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17 Comments
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Elizabeth Murray
Guest
Elizabeth Murray
February 14, 2020 2:09 pm

what is it? I do not even have any Bitcoin or ETH or altcoins or any of it….

bunion132
Irregular
February 14, 2020 4:10 pm

The ability to read is most certainly an asset to have in Gumshoeland. This is (arguably) the shortest analysis I’ve ever seen Travis do, so one can find the answer quite easily. If you absolutely do not have the time to read, then consider becoming an Irregular to benefit from the “Quick Take” section for instant gratification.

👍 333
319kyo
319kyo
February 16, 2020 9:12 pm

It is designed to cater to institutional users of crypo currencies, not the retail consumer. Users must have an account with the bank backed with US Dollars in order to use the Silvergate Exchange Network (“SEN”), a proprietary payment network. According to Austin Root, Silvergate connects with 80 exchanges and over-the-counter trading desks and 500 institutional investors. It is a very interesting concept; but I need to wait and see how this unfolds further.

👍 12
karats4all
karats4all
February 14, 2020 8:30 pm

Check out therealmoney.online/karats4all. May be a better portfolio expanding opportunity!

👍 -27
stgmwsm
February 16, 2020 12:43 pm
Reply to  karats4all

Voted down comments should disappear so as to not waste our time. If anyone wants to read them, an option to expand to read should be programmed.

👍 -4
erug
Member
erug
February 15, 2020 4:15 pm

So I can feel not think this equity to the panicked process due the election. If small investors like me sell to cash or look at safe havens during a sell off , gold or crypto currency may be the go too. It’s not logical but has its probabilities.

👍 15
bunion132
Irregular
February 15, 2020 7:45 pm

Thank you, Travis, for the cautionary note that the IPO was less than 6 months ago and therefore still subject to a selling pressure during and even shortly after the lock-up period. You are correct in that institutional ownership is rather small at ~ 38%.

On the flip side, it seems that some of its fundamentals and price behavior are encouraging. Firstly, it’s not a collapsed IPO unlike many we’ve seen recently. Stock price is on an uptrend this month, along with the rest of the market. It has a reasonable P/E ratio and positive EPS. Best of all, the ROE is already at 11.77%. I’m also of the impression that Matt McCall has a strong following among the younger Gen X’ers and Millenials, especially in the crypto niche.

It’s tempting, really tempting, to jump in now despite making FOMO mistakes in the past with stocks still in the lock-up state. Can someone remind me (again) not to do this?

👍 333
Carla C. Carter
Member
Carla C. Carter
February 16, 2020 10:18 am

I like Matt McCall on the surface. Anyone know him and his work well enough to recommend or not? CC

49erJoe
Member
49erJoe
February 19, 2020 3:22 am

Yep. Guy 100% loves what he does. These are not guesses McCall throws out there, definitely a lot of research behind his picks. He does what he refers to as Boots on the ground research. Small companies you can talk to CEOs. Try to find a way to talk to Bezos, you cant. He does his research and more. I beleive in him 100%. I dont believe hes a scam at all. But, his prices went up dramatically. I got in when it was $49 las yr. Now its like $1400.

49erJoe
Member
49erJoe
February 19, 2020 3:26 am

Inseego. Will do well. Very well. Look at what theyre doing and see if anyone else is doing it. Nobody. They have a nice wide open Total Addressable Market. Crypto is huge. And not going away anytime soon.

oneforallforone
Member
oneforallforone
February 19, 2020 10:01 am
Reply to  49erJoe

What does this have to do with crypto?

👍 3
Carla C. Carter
Member
Carla C. Carter
February 16, 2020 11:02 am

What do others think of this?