A few readers have sent in questions about the teaser email Keith Schaefer sent out this morning… and he does weave a nice tale in his tease, promising more details tomorrow… so let’s jump the gun a bit and see if we can ID the stock, shall we?
Schraefer’s newsletter is the Oil and Gas Investments Bulletin, and we’ve covered it a few times over the years… but though I assume this will end up being a tease for his newsletter, it’s very much NOT an energy company he’s teasing this time. The headline of the free teaser article he released today was “My Greatest Winner of All Time Will NOT Be an Oil or Gas Stock.”
He tells the story of looking for a non-energy stock back in 2016, when he said there was “no bid for oil stocks,” and how that led him to build a large position (2% of the company) in a disruptive technology stock… in his words:
“I went looking to make money elsewhere — specifically, downstream — in search of innovation and disruption in the energy markets.
“What I found there was something very special — a microcap stock with a disruptive proprietary technology.
“Over the last couple years, I have been patiently accumulating… and I now own 1.7 million shares. That’s 2% of the company.”
That’s a big stake, even if it is a microcap stock… so who knows, perhaps he’ll even give the name away when he follows up this “tease” article — after all, he would stand to benefit more than most if the stock rose.
But in the meantime, it’s a puzzle for us to solve… so what clues do we find that we can feed to the Thinkolator? Here are a few:
“This company is hitting its stride. Revenue increases. Positive cash flow. Big Name Customers….
“The company has just signed major deals with multiple NASDAQ/NYSE listed companies. As a result the revenue growth from here is about to go parabolic….
“… these deals are not priced into the stock of this company. With next to no analyst coverage, The Market has no clue what is going on here.”
He puts a lot of weight on the fact that this company has deals in place with some giant and well-established companies — mostly because he says that validates their technology and proves that they are able to sell to big customers.
What’s the business? Inventory control — Schaefer says that we’re ready now for the “tipping point” for radio frequency ID (RFID) tracking to take the place of bar codes and other inventory control systems, after the failed attempts (led by Wal-mart) of a few years ago. More from the tease:
“Walmart was early, but not wrong.
“We are now at the moment when RFID will be the solution that saves businesses tens of billions of dollars.
“Since Walmart’s test, hardware costs of RFID have plummeted. And RFID tags and readers now work over wide areas–the challenges of accurately reading wide areas have been addressed.
“In the future we will recognize right now as the tipping point for mass RFID adoption.
“The microcap company that I’m going to reveal to you is right at the center of this tipping point.”
What other clues do we get? Schaefer talks about an $8 billion NASDAQ listed company that has installed this RFID technology in over 70 locations across the US — and says that over the past year, they “fixed” their inventory problems using this secret microcap’s technology and saw their share price triple.
He also includes a handy little stock chart of that tripling, which will be good to use in confirming the Thinkolator’s answer in a moment.
Other clues? We’re told that this $8 billion customer is just the beginning…
“In 2018 this microcap RFID stock got its foot in the door and then kicked it right off the hinges. Not with one big customer mind you… with multiple Fortune 1000 companies….Are you getting our free Daily Update
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“… the largest RFID tag companies (the hardware in this business) on the planet are becoming partners and sales channels for my micro-cap RFID com