by Travis Johnson, Stock Gumshoe | February 14, 2020 1:52 pm
It’s Friday and I’m mostly working on my Friday File[1] and Annual Review[2] for the Irregulars, but I couldn’t resist a quickie answer for you on this latest Investorplace[3] pitch… Matt McCall[4] is selling his Early Stage Investor[5] service ($1799, nonrefundable) with a spiel about eight life-changing microcaps in his “Microcap Millionaires[6] Portfolio.”
He gives away one of them for free in his “presentation” (that being Inseego (INSG), which we’ve covered many times[7]), 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[8] 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[9] 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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what is it? I do not even have any Bitcoin or ETH or altcoins or any of it….
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.
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.
Check out therealmoney.online/karats4all. May be a better portfolio expanding opportunity!
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.
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.
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?
I like Matt McCall on the surface. Anyone know him and his work well enough to recommend or not? CC
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.
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.
What does this have to do with crypto?
What do others think of this?
Also a recommendation by Austin Root at Stanberry. I will be tracking the stock and see what happens after lock up expires on 5/5/2020. Root was very positive about this stock. I may buy it later in the year.
Thanks much! This Dr Thinko supporter was sincerely un-impressed when “ MMc” noted “INSG” as a bonus 5G lead ticker. That crypyo-industry assisting Bank ipo is news though!
Another quest-question!
This bottom fishing investor is head scratching about “TPTW” a Telecommunications San Diego Holding Co, extremely (but dangerously ?)cheap now and seemingly paying off “subsistence financing” debts on “our” stock investment buy-ins…with the rapidity of fast “U-TURNS!”
Pink Market so cannot expect much, but the YaHoo volunteer communicators often research things and list them! The innovators of this future 4G-5G “‘SUCCESS STORY’” seem to be a significant finance and executive Who’s Who, but the roller-coaster ride is rough!
Could be a real rousing winner, or a loss of half one’s input! One recalls Netflix of the early stages when my Mutual Fund loving Civil Servant husband said never buy single stocks, though it was cheap at ground level $3.35 or so, not trusting myself I did not buy from our then (early mud 2000’s) stogy, secretive, & expensive brick&mortar broker!
Also another quick question!
Have you or others heard of the “Wallet Investor,” who do regular stocks, but strongly market crypto currency names! ? They use “AI”, algorithms to measure anything they comment on as, “awesome,” “outstanding”, “not so good,” etc.others, and “bad!” For a “one year’s investment!”? Seems that when I rarely commented on YaHoo Finance quoting “Wallet Investor’s” prediction of $115.17 (or so) a share as a one year’s price increase, and there was a polite communal GROAN-like they knew a lot more about a “joke” service I had referenced as if a legitimately quoted research service; anonymously of course!
This supporter just wonders if they have a schedule of prices “Wallet Investor” sells at their good, better, or best prices as graduated ratings, non-intellectually authentic grades to?
Thus company stock promoters willing to pay , can get a “tin” or a “bronze,” or a “silver,” “gold,” “palladium,” “Platinum,” level promo rate!
The TPTW a few days ago as their stock, it was selling at .0030 and got an “awesome” score! “Awesome” because they are environmental political correctness advocates, they too support rescuing the Polar Bears!
Thud! What’s their yard stick! Did learn they are located it seems in the country of Hungary!!
You are a sane voice in a fruit-market of barkers!
Nancy thanks you much!
Has anyone heard of the micro-currency? Any thoughts on it? Good or not to get into?
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Thanks for the SI heads up! Will wait and see until May 5!
Boomer not too great on I-Phones, etc! My I-Phone in repair!
Using my daughter’s phone not set up 100% for Dr. Thinko!
I bought and sold TPTW in Oct 2018, OR SO, dirt cheap! Then bought it lately again! Then they were paying off expansion borrowed monies! Then their value went up and many bought it! Almost overnight those gains (bought on) were wiped out with the international viral news contagion pumping !
Had been watching THIS Budget 5G stock TPTW because they focus on rural internet expansion for 5G!
More broadly they are involved in about 4 opportunity silos- one is tech support for government!
Offering a sort of “SAAS” type thing, and a 3D Smart phone!
They label themselves a holding company, but the list of the corporate functionaries is pretty “fancy,” based on the comments!!
Wondered if any others of your followers have asked broad questions about TPTW?
Marion (Nancy-“midget investor”) Dr. Thinko follower.