iBeacons and the Motley Fool’s “Inside the iStore: The One Stock to Own When Apple Takes Over Ecommerce.”

Solving the teaser pitch from Dave Gardner's Motley Fool Rule Breakers

By Travis Johnson, Stock Gumshoe, August 21, 2014

I think I saw this ad a few months ago and didn’t write about it for one reason or another, but it just started a heavy rotation again — so let’s have a gander.

David Gardner is a growth stock dynamo — he and his brother Tom founded the Motley Fool as an AOL chat room decades ago, and he has rightly been credited with some tremendous long-term returns over the years because of his faith in massive growth stories like AOL, Amazon, Netflix, Marvel, Priceline and others. Often stocks that I worried were expensive before they went up another 1,000%.

Of course, that comes with some downside, too — he does have a pretty good long-term record at Rule Breakers (his growth stock letter) and at Stock Advisor (which he and Tom put out together), beating the market over the long term if not over recent years, but his newsletters also put out at least a couple stock ideas a month and have done so for more than ten years… and the average return beat the S&P for those few folks who bought every stock and held through ups and downs for five years or more, but there have certainly been plenty of stinkers and mediocre ideas along the way. That’s the seemingly unavoidable downside of buying high-growth, highly-valued stocks: Many of the stories don’t play out, even if you’re a pretty good stock picker.

So with that out of the way, what’s David Gardner’s pick this time around?

It has to do with iBeacons. This is Apple’s new technology for insider location mapping — as in, knowing where you are inside a store or a stadium, which should enable advertisers (or the store you’re in) to send targeted information to your phone. So if you’re browsing through the racks of pants at Brooks Brothers and you want your phone to know you’re there and ping you with a 10% off coupon for suits, well, you may soon be in luck.

Here’s how the Fool ad pitches it:

“The shocking announcement that has Silicon Valley’s smartest investors asking…

‘Is Ecommerce Too Big to Fail?’

“August 21, 2014 – One Silicon Valley Company doesn’t think so.

“And it’s now aiming a brilliant new consumer technology straight at a segment of the market that Goldman Sachs predicts will more than triple in size by 2018.

“Incredibly, no one even saw it coming.

“Wired magazine declares it ‘exciting’ and says it has ‘all sorts of compelling use cases.’

“Businessweek called it this company’s ‘secret weapon.'”

The “announcement” is all about how there was an almost-unnoticed slide in a presentation in San Francisco that was overlooked by almost everyone … except, of course, for your Motley Fool cognoscenti.

“For three days each June, a beautiful three-story convention center in downtown San Francisco becomes the center of the tech universe.

“In an industry known for big announcements… this is the place for big announcements….

“The keynote speaker – head of software at one of Silicon Valley’s most inventive companies – had just unveiled the revolutionary redesign of his company’s flagship product.

“But this new, cutting-edge system wasn’t the most important announcement made that day.

“Not by a long shot.

“A new, disruptive consumer technology was.

“Well… that is…

“If you call the presence of a single, eight-letter word… hidden on a text-heavy slide… much of an ‘announcement’

“That was it.

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