I haven’t written about a Lou Basenese teaser pitch for a while, so a few reader questions about his latest “perfect 5G stock” teaser sent me down the road we’ll travel today. The ad I’m looking at is for Baseneses’ Trend Trader newsletter ($149/yr), and he has worked with a variety of publishers over the past decade or so but now appears to be published by Crowdability.
Here’s a little taste of the hype in the ad:
“It trades for just $2 per share… its ‘gatekeeper’ technology holds hostage the entire $12 Trillion 5G revolution… it just secured a CRITICAL 5G patent…
… and by October 1st, my research says a major smartphone player could buy out this tiny company and hand us a FAST FORTUNE!”
The ad has the typical long spiel about how 5G will be groundbreaking, changing the world in unimaginable ways as remote surgery and self-driving cars and other cool stuff become mainstream over these higher-speed wireless connections, but we’ve heard that a thousand times now so we’ll just skip to the bit about this “perfect $2 stock” … which, we’re told, is “perfect” mostly because it’s small, unknown, and has a patent on a technology that everyone will need… which means the royalties should be rolling in soon (or, as Basenese says, perhaps they’ll be taken over to get control of that technology).
The patent is from November, and he blacks out some of the key information (like the patent applicant, the inventors, and the patent number), but there’s still plenty of info to confirm the company — which means we can be a little quicker than usual today. Here’s one more bit of hype:
“Although you’re not seeing ANY news coverage on this, just days ago this tiny company locked up the world’s most valuable 5G patent….
“Which makes it 100% legally binding that this company gets PAID for anyone wanting to access its 5G breakthrough…..
“Now that this patent is locked up, it means all the big 5G players have NO CHOICE but to pay this tiny firm a royalty for its device.
“We’re talking about legally forcing any of the telecomm giants like Verizon, AT&T, Sprint T-Mobile….
“And ANY smartphone manufacturer like Apple or LG that wants The PERFECT 5G stock’s technology….
“To pay this tiny company.”
That’s a shortened version of the pitch, to be fair — he included lots of “what if” language in there, perhaps to assuage his lawyers so he can claim this is just a hypothetical, but that’s the basic idea… this company has the best technology, they’ve got patents, and anyone who wants to use their best 5G tech will have to partner with them and pay royalties.
He also hints that…
“This tiny $2 company has ALREADY signed a $10,000,000 deal with one of the leading tech companies in the world…”
And he later goes on to say that the company is already working with Samsung, as evidenced by one of their pieces of tech being found in a teardown of a Samsung phone, and that they’re also working with Murata, which is an Apple supplier, so might perhaps be in the next iPhone.
I have no idea whether or not they’ll get any Apple business, but we can at least take you out of your misery and reveal the “secret” — this is another tease of a Resonant (RESN), a small-cap RF filter technology company that is indeed trying to push adoption of its patented filter technologies in 5G phones.
Here’s now Resonant describes itself:
“The filtering problems of RF front-ends are rapidly becoming so complex that very few companies can solve them. At Resonant, we have developed a fundamentally new suite of technologies we call Infinite Synthesized Networks®, or ISN®, to configure and connect acoustic resonators, which are the fundamental building blocks of RF filters.”
You can see Resonant’s latest investor presentation here, it lays out the case for the company pretty well and certainly tries to make a claim similar to Basenese’s, that Resonant’s technology will make filter development faster and cheaper, and that 5G should dramatically increase their royalties as they move their XBAR filters into development with an “industry leader”.
Resonant is a very small company, with a market cap of about $120 million and no real revenues yet — they did receive an initial $2 million pre-payment of an anticipated total of $9 million in royalties (over several years) from Murata last year, and that showed up as a receivable on their cash flow statement but they apparently haven’t actually earned it yet, it hasn’t hit their income statement. Regardless, though the company is still on pace to burn through roughly $3