Louis Basenese and the folks at White Cap Research are launching a new advisory service that looks for “game changers” in tiny stocks that they think will have hugely disruptive success — the newsletter is called MicroCap Tech Trader and will run you about a thousand bucks a year … but if that sounds a bit steep, how about if we start off by trying to identify their first “game changer” for you?
Ok, we’ll even do it for free. Sound worthwhile? Well, you will have to sit through a few moments of blather from your friendly neighborhood Stock Gumshoe, but that seems a small price to pay.
Identifying early stage tech companies is obviously not a new idea — there are scores of newsletters that try to do this, from Patrick Cox and his love affair with biotech to David Gardner and his Rule Breakers, you can find all sorts of folks that aim to identify the next big growth stock winner that will change the game (or change the rules), with some folks looking for “breakout” stocks and some for the really tiny micro cap innovators that provide even more excitement (and risk).
So Basenese and his copywriters had to make it sound a bit sexier to stand out, of course — here’s part of the pitch, which comes in under a shadowy picture of the men who could “zero out YOUR bank account in seconds”:
“You could call them incubators, test labs, or start-ups.
“I call them sleeper cells.
“They’re hidden in plain sight all across America, gaining traction every day…
“…hatching new ideas, new plans and new missions to change the world, even if they’re at your expense.
“If you think I’m being overly dramatic, I understand.
“The world is filled with financial analysts trying to scare you to death with threats about rioting in the streets and the fall of the government.
“What I’m writing to tell you about today isn’t likely to do any of that. But it could damage you and your family’s financial future beyond repair.
“You see, these men aren’t criminals or warlords. They’re not terrorists or even computer hackers.
“No, they’re visionaries. Innovators. Geniuses.
“They’re a lot like the names you read about these days in the pages of Time, Newsweek, or even Rolling Stone…
“They’re part of a new breed of what I call ‘Game Changers.’”
So I guess the folks at InvestorPlace don’t own that “game changers” term … much to their chagrin, I’m sure (that’s the current name of one of Hilary Kramer’s letters)– so which “game changer” is Basenese teasing us with this time as his first “call to action?”
Well, first he runs through a pretty standard littany of past stocks that he might have picked years ago, had he been running such a service and/or had a time machine — disruptive picks like Netflix and Redbox beating Blockbuster, Amazon beating Borders, Apple beating everybody, and implies that he’s going to be able to sniff out that next Reed Hastings, Jeff Bezos or Steve Jobs while they’re still unknown … AND help you to avoid being on the wrong side of the trade by owning the losers who will fall to those next-stage “game changers.”
How will he do this? Well, there’s a picture of his “control center” (desk, to you and me) in the ad so we at least know he has three monitors — which is making your friendly neighborhood Gumshoe feel a bit inadequate. And he says he travels to a lot of trade shows and talks to CEOs. He says he looks for “mega trends,” patents, and “perfect timing” — which he says means buying into a tiny company two or three quarters before they become profitable.
So yes, like most newsletter ads he’s throwing out a pretty bold premise (not least because pretty much every unprofitable company on earth tells us that it’s a few quarters from reaching profitability), and he’s launching a service so it has no track record to brag about (or hide from). In his favor, at least, he wisely doesn’t promise that his first pick will go up by 10,000% (after getting us all hot and bothered with charts of Apple and Netflix, he doesn’t have to).
Here’s how he gets us excited about his inaugural pick for this new service:
“What was once confined to ATM and credit card machines is now becoming the norm for almost any cutting-edge piece of technology.Are you getting our free Daily Update
"reveal" emails? If not,
just click here...
“Touchscreen technology makes for a sleek, easy-to-use product that doesn’t require a bulky keyboard.
“And almost all touchscreens use a rare earth metal known as indium tin oxide (ITO) as their conductor.
“And as the name implies… rare earth metals, like ITO, are very hard to find. And thus – very expensive….
“Add to that the fact that China has a monopoly on most of the world’s ITO supplies and you can safely guess that prices aren’t going to be leveling off any time soon.
“Another issue with ITO is its inflexible nature, which puts a limit on the size a touchscreen can be.
“So it’s safe to say that anyone who could develop a cheaper, more flexible alternative to ITO for touchscreens could easily have a hot product on its hands.”
And yes, Louis thinks he has found this company with a cheaper, more flexible alternative …
“The New Face of Touchscreens…
“That’s where this under-the-radar American company that currently trades for under $9 comes in.
“It’s swimming in $11 million in cash and has ZERO debt on its books.
“Even better, it’s just steps away from releasing a game-changing product – one that could be used in almost every consumer electronic device in the world.
“You see, this small firm has developed a touchscreen system that uses copper instead of ITO as its conductor.
“And copper is far more plentiful and easy to buy than ITO.
“It’s also more transparent, thinner and 75% more energy efficient than ITO, which means it could extend the battery life for phones and computers, too.”
And the story is pretty early in development, per the tease:
“…this company is still at least six months away from releasing its new touchscreen system to the public.
“So unless you’re already familiar with the company, you’ve likely heard nothing about it. “
He also says he met with the CEO, and that he’s had lots of meetings with hardware manufacturers — and that the company is so small any announcement of even one deal for getting their technology into a new product would s