Alex Green’s “Single Stock Retirement Plan”

Oxford Club says "This Obscure $3 Stock Can Deliver a Multimillion-Dollar Retirement... Starting Today" -- so what is it?

By Travis Johnson, Stock Gumshoe, July 16, 2018

Alexander Green at the Oxford Club has a new ad out for his “single stock retirement plan” that’s sending a ton of questions our way — and you can see why. He’s promoting this one stock as being able to deliver a “multimillion-dollar retirement”, and there are obviously huge numbers of us holding out hope that there’s a way to “save” the retirement we know we’re not financially prepared for.

Here’s a little taste:

“I’m going to show you how a modest investment in a single $3 stock could generate a multimillion-dollar dream retirement in the coming years.

“I call it the ‘Single-Stock Retirement Plan.’

“Some might find the idea of retiring on one stock outlandish, yet many thousands of Americans have already done it.

“In fact, as you’re about to see, the 20 wealthiest men and women in America today made their fortunes thanks largely to a single stock.”

And he says that if you’re going to retire on one stock like those wealthy men and women did (though they mostly built businesses, they didn’t invest passively in one stock), Green says it has to be “the perfect stock.”

He’s even got a checklist for what “perfect” looks like when you’re seeking this “dream stock” for a one-stock retirement… which is when the clues start to drop in about what stock he’s pitching:

“Leader in cutting-edge technology….

“products used by billions of customers…

“profit margins protected [patents, trademarks, etc.]…

“hundreds of billions of dollars in future sales and profits… contractually guaranteed…

“pay an enormous dividend.”

And he says this “perfect” stock should have catalysts — upcoming announcements that could drive the share price — and that the “one key element” is that the stock must be “undiscovered.” And that it should “trade for a just a few dollars a share.”

The per share business is silly, of course, but investors do get hung up on the idea of paying a low per-share price as a prerequisite for huge future gains. Different countries and different eras have different expectations for “per share” pricing — some large Australian companies trade at what we would think of in the US as “penny stock” prices, for example, and it used to be that most large US companies would aggressively manage their share price, using stock splits, to keep it in the $40-100 range. The market cap and the valuation of the company are what matters most, the price per share is mostly irrelevant.

But anwyay, that’s all a lead-up to this stock that Alexander Green is teasing… what other clues do we get? From the ad:

“I only recently uncovered it.

“And if you move quickly – before an upcoming announcement set for August 20 – this $3 stock could hand you the kind of carefree retirement most people only dream about.”

And then some specifics…

“The company has inked deals with Cisco, Microsoft, Intel, Sharp, IBM, Hewlett Packard, Nintendo, Sony, Nokia and Apple…

“In total, I expect it to receive more than $34.5 BILLION from these partnerships alone….

“According to data from Intellectual Property Watchdog, the firm has quietly amassed one of the largest tech patent libraries of any company in the world.

“It has 29,187 patents inside the United States and 49,599 registered globally.

“You can see why the world’s most famed tech companies are all signing blockbuster deals with this little-known firm trading for $3.”

And it sounds like this is not a small company, despite that $3 share price…

“… earnings per share recently surged 106%.

“And I expect the company to hit $164 billion in annual sales as early as 2019.

“The company pays a big dividend too… 116% bigger than the S&P 500 average.”

Why is this stock “unknown?” Green says it “does not trade in a normal way” and it’s not on a US exchange… and, far more mysteriously, that it “literally trades under a secret name.”

So that’s enough to get our answer, I bet, but let’s throw a couple other clues into the Thinkolator…

“A major multibillion-dollar deal that involves both Apple and Donald Trump is about to bring this secret company into the mainstream….

“… the $3 stock I’m talking about had very humble beginnings.

“It was started by the blue-collar son of a career police officer….

“… he scrounged together $7,500 in seed money and went to work.

“He founded a tech company, but a very different kind…

“He realized that he probably couldn’t compete directly with the Apple, Amazon, Samsung and Google of the world.

“But if he could quietly do business with these tech giants, he just might turn his own venture into a successful company.”

He started out building computer hardware — the chassis for a desktop computer, and then aggressively expanded to build and provide components for all kinds of tech products. Green cites a few recent contract examples”

“The company has signed an agreement to build eight different motherboards for Intel.

“It’s also building five more for the $5 billion semiconductor company Advanced Micro Devices.

“It’s building LCD screens for Sharp in an $8.8 billion production plan.”

And a dozen others, components for Amazon and Nokia and Acer and Nintendo and Apple. So who is it?

This is, as several readers have already figured out, the Taiwanese company Foxconn, known for playing a major role in assembling Apple’s iPhones but also a bit supplier to most of the world’s gadget makers. Foxconn is the world’s largest contract manufacturer and one of the largest private employers in China (if not the largest), and is one of the largest tech companies in the world (at least on a revenue basis).

And the “secret name?” Foxconn is the more widely-known name of the company, adopted when they were trying to get more international sales around 1980, and its the name you’ll see most articles use (as when they discuss the massive “Foxconn City” in Shenzhen, which has more than 200,000 workers), but the actual name under which it was founded (in 1974) is Hon Hai Precision Industry, and it’s still listed under that name in Taiwan. You can see the company’s own description of itself on their website here.

So yes, I suppose it’s kinda “secret” that Foxconn, the contract manufacturer that most tech investors have heard of, is actually Hon Hai — though certainly all of the institutional investors who own the lion’s share of this large cap stock are obviously aware.

And yes, it’s technically a $3ish stock, though that requires some currency translation — it trades in Taiwan at ticker 2317, and closed yesterday at T$82.80, which in US$ would be $2.70.

And yes, it’s not particularly difficult to trade the stock in the US — there is an ADR representing the Taiwanese shares for US investors, it trades OTC at HNHPF, with each US OTC share equaling two shares in Taiwan. There are similar depository receipts trading in London at HHPD, also representing two Taiwanese shares each. The overwhelming majority of trading volume is in Taiwan, as you might imagine, so that’s where the “fair” price is set, but the London and NY trading tends to be very close to that price most of the time despite the lower volume.

So if you want to buy in the US, technically you’re paying $5.40 or so per ADR… but each one is two shares, so I suppose you can say it’s “secretly” a $3 stock.

All that mystery and intrigue is beside the point, though — the question is, do you want to own a piece of this gigantic electronics company? Here’s what I can tell you about it:

It’s a big company, the market cap is just under US$50 billion… so it’s not likely to rise 1,000% over the next decade, and it’s not a small cap rising star just because the share price is fairly low. Hon Hai is the second largest stock in Taiwan, trailing only the massive Taiwan Semiconductor (TSM).

Hon Hai/Foxconn is priced at a steep discount to the broader market, and has underperformed the broader market, for a long time. The shares trade at about 10X trailing earnings and 1.3X book, with a price/sales of only 0.3, and the dividend is very high — likely to be near 5% over the next year, though the payout varies pretty widely.

That hasn’t helped the stock much, I’m afraid, it’s been in a pretty steep decline since the highs of last summer and has not been able to generate any meaningful share price growth for a long time. Even if you bought at the very bottom of the market (for Hon Hai, at least) in November of 2008, you would have gains of only 150% over that near-decade, including dividends… far short of the 350% return of the S&P 500 over that time. And almost 1,800% for Apple, Foxconn’s most important customer. Here’s what that looks like, for the visual learners among you:

Which does serve, at least, as a helpful start to a thought exercise about who profits from hit products — is it the designers, the developers, or the companies who sell them parts and assemble the actual gadgets? Lots of things go into that, and there are plenty of growing and profitable component makers and Foxconn has certainly made a profit most of the time over the yeras, but the two things that seem to me have the most impact on compounding long-term growth in the sector are sustainable brands and some measure of uniqueness. Suppliers can do very well when their product or chip or whatever is better than the competition, but they also have to keep that edge… or make the component an in-demand brand or a near monopoly, as Intel did 30 years ago with their “Intel Inside” branding campaigns for chips and their tight partnership with Microsoft.

That’s what I’d look for when researching Foxconn… where do they have the opportunity to become more than an anonymous assembler? What’s keeping them from having to compete on price? If the shares are down just because of the burgeoning trade war fears, which could obviously have an impact on one of China’s largest exporters, then perhaps this lower price is a buying opportunity — but Foxconn shareholders have failed to really benefit from sales growth or new businesses or booming iPhone sales for a long time, trade war or no trade war, so I imagine there are some structural problems behind their relatively weak performance.

The stock does also carry some political and regulatory risk, or at least “headline risk” because of the frequent complaints and lawsuits about worker treatment at its many gigantic factories around the world. We all remember the stories about suicides by Apple iPhone workers, I bet, and those were Foxconn stories about the pressure, secrecy, long working hours and employee stress in Shenzhen, but similar smaller-scale stories seem to pop up with some frequency. Hopefully the US factory that Foxconn is building in Wisconsin, following some mega incentives from the government, will be a bit kinder and gentler, we’ll see.

Foxconn gets lumped in as the “iPhone maker” by most investors, so the share price tends to react to the iPhone cycle as massive predictions of huge sales volume send the stock climbing and slower sales, like we’ve seen recently, help to pressure the stock… the company is obviously far more than “just” Apple’s main manufacturing partner, though I don’t know if that will help to smooth things or create a real growth trend for the stock.

They’ve been aggressively expanding into new businesses and buying up brands and technologies for a long time, most recently with their acquisition of Belkin this year… and yet adding more low-margin businesses in very competitive sectors doesn’t necessarily give them better profitability. My impression, as someone who admittedly has done very little research on this stock so far, is that the pressure of the low-margin contract manufacturing business, where companies like Apple push them to get costs lower and lower each year, seems to have kept them from showing any real sustainable earnings growth on the back of the growth in the business… so if Alexander Green ends up being right about this being a “one stock retirement” idea, it will likely be because Foxconn starts to get a little more leverage over the actual brands whose products they make, giving them a chance to increase margins… or because they finally move up the “value added” chain a bit, as they’ve been trying to do recently with their push into the automotive business.

I have a hard time predicting huge success for Foxconn, but it’s certainly possible — and I haven’t read much about their current business and certainly know less about them than Alexander Green does, so take my skepticism with, well, a bit of skepticism… maybe the “one stock retirement” hype from the Oxford Club and my skepticism can balance out a bit, and then you can go into your analysis fresh and unbiased and make your own call. It’s definitely a cheap stock, so you’ve at least got that going for you.

So please do go forth, researchify for yourself, and let us know what you think about Hon Hai and its prospects for the next few decades. Just use the friendly little comment box below… and thanks for reading!


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60 Comments on "Alex Green’s “Single Stock Retirement Plan”"

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Diane Lindner
Guest
0
So while you can apparently buy this stock either through an international trading desk (it’s listed as 2317 TT on the Taiwanese market) or as HNHPF on our OTC market, I tried buying a small quantity today on Schwab, and was unsuccessful. It’s pretty odd: they list the OTC ticker, give you the chart and everything else, but if you put in a buy order they then tell you there is no such stock or ADR. BTW, the reason Green gives for his belief that it will soon surge is that, since it’s planning on building several US manufacturing sites,… Read more »
Chris
Guest
0

FYI – I’ve had similar experiences with Schwab once or twice, but the problems were quickly resolved with a call to their help desk. They didn’t even charge a commission once they placed the trade.

The Oxford Club
Guest
0

Hi Chris,
Thank you for your input. We have come to notice that many investors find themselves lost or confused when trying to navigate Schwabs online platform. We strongly suggest calling-in to their client services before throwing in the towel, it can make a world of a difference.
Thank you again for your feedback.
Sincerely,
Nikki Roeill
Member Experience Coordinator

The Oxford Club
Guest
0
Hello Diane, Thank you for your feedback and engagement within our services. It is always nice to see our members putting forth their own personal research toward our recommendations and reports. In Alex Green’s report, “The Single-Stock Retirement Plan,” it outlines specifically that you will need a minimum investment of $3,000 for the Taiwanese version of the stock. Any less, and you cannot transact. We push heavily for members to do this over the OTC version. And if someone puts in an order for the stock overseas, it will look unfilled until the Taiwanese market opens. Many of this is… Read more »
TMS
Guest
0
The reason you couldn’t when you tried to buy a small quantity on Schwab is because it’s not available as an online trade; you need to go through Schwab’s international desks. It involves currency exchange. And then too, these 2317 TT stocks are sold in multiples of a thousand. The international department can walk you through all of this. Many people won’t bother; there is a currency exchange fee, and then Schwab has its own fee of $100. There are the over-the-counter options, other brokers, etc. but Schwab’s services are probably very fairly priced (and even free in Chris’s case!… Read more »
Jon
Guest
0

Fascinating, this reads/sounds a lot like Elon Musk of TESLA has adopted (Foxxcon’s) business Modell. Mind, ASSEMBLERS have a history of failing in the longish run .. first slowly, then suddenly.

frank_n_steyn
Irregular
71

“first slowly, then suddenly”…isn’t that a Hemingway quote?

The Oxford Club
Guest
0
Hi Jon, Thank you for your feedback. Foxconn will continue to invest in the research and development of new products, technologies and applications. They have charted a long-term research direction in key growth areas across the information technology sector, including such areas as telecommunications, consumer electronics, robotics and automation, optoelectronics and precision machinery, among others. Foxconn has established agile, broad-based production capabilities from components, modules, and product assembly to integrated services. With 5G technology becoming a reality in the near future, the potential for greater innovation and the development of business opportunities are limitless. True to their vision: “enhancing people’s… Read more »
goingloco
Irregular
18
James Dyson, one of the UK’s most successful entrepreneurs, says that the money is in ideas, R&D, and patents. I believe he contracts out most of what he calls “assembly”. So that’s a negative. But I’m intrigued by all those patents that Foxconn claims to have. Anyone know if they have done R&D into manufacturing techniques? Will this give them an edge in the future? If Foxconn owns the IP for techniques and machines to make stuff in cheaper ways does this give them an edge in the future? I am aware they have invested hugely in robotics (that, I… Read more »
advantedges
Irregular
72

Why not spend time on determining the stock symbol for FoxConn?

The Oxford Club
Guest
0
Hello, Thank you for your engagement surrounding our services. Foxconn’s ‘main’ technology areas are electrically-conductive connections, electric digital data processing and printed circuits; casings or constructional details of electric apparatus. With over 69,800 granted patents, Foxconn is a leader in the intellectual property space and one of the top 20 patent holders world-wide. Hon Hai/Foxconn’s competitive advantages stem from the award-winning eCMMS business model and an unique Foxconnian culture. eCMMS stands for e-enabled Components, Modules, Moves and Services. eCMMS is the vertical integrated one stop shopping business model by integrating mechanical, electrical and optical capabilities altogether. It covers solutions ranging… Read more »
glomerulus
Irregular
40

I suppose that you could retire on this one stock if you: 1) buy 500,000 shares now then sell them in a few years and, 2)live in a rusty old trailer. *sigh*, just another bull&%$# teaser.

The Oxford Club
Guest
0
Hello, Thank you for your feedback and concerns. The Wall Street Price for Foxconn is below both the Main Street Price and the Bargain Price so before Foxconn goes shooting above Main Street Price brackets – we issued this report rating Foxconn as a bargain, Buy. Apple pays a dividend yielding 1.65 percent. Foxconn paid a cash dividend in the past yielding 5.2 percent along with an additional stock dividend of about 1.3 percent. Do not be fooled by the company name of Hon Hai in Chinese. It is Foxconn Technologies. How to Invest in Foreign Stocks at Reasonable Cost… Read more »
Robert
Guest
0

I bought it through Fidelity Intl Trading desk. Minimum shares are 1,000. So I bought that at $2.76 under symbol HNHPF. They are in my account as HNHAF. No big deal. If I lose a certain percent, then I am selling. I trust Alex Green so I am giving it a shot. Time will tell.

pds1015
Member
0

Thanks, Robert. I tried to buy it this morning online and the trade did not go through. I will go there on Monday and speak with someone in the international trading division.

dnote
Guest
0

HNHPF the ‘secret’ name of the stock and it registers as HNHAF. That’s weird

vivian lewis
Guest
0

the real issue is that both Hon Hai Precision and Foxconn no longer have ADRs so you cannot buy them from a US brokerage account. that is one reason that this is such a perfidious marketing play. presumably some crooked broker will offer you a chance to buy in Taipei at some huge premium once you fall for the offer

The Oxford Club
Guest
0
Hello Vivian, Thank you for providing your concern and insight regarding Foxconn. To help clarify some of your skepticism; Chinese policymakers have sought to lure leading technology groups to mainland capital markets, after national champions such as Alibaba and Baidu chose New York listings. Earlier this year, the China Securities Regulatory Commission published a new regulatory framework for the issuance of China Depository Receipts (CDRs). The plan is modelled after the American Depository Receipts (ADR) scheme under which foreign-incorporated groups can trade in the US.  CDRs will offer a mechanism for groups that are already listed abroad or are ineligible… Read more »
coolsoupy
Member
30

I can’t pick and choose from all the tech so I bought SFTBY and let Son do the investing.

elkate
Irregular
0

Can anyone clarify ticker SFTBF with a yield of 52%, does that make sense. Also can anyone say what would be the pros and cons about choosing either one.

vivian lewis
Guest
0

you cannot legally buy in Taiwan.

advantedges
Irregular
72

The Buy would be an ADR

JOHN
Guest
0

HNHPF is at $5.43 Ameritrade

JOHN
Guest
0

HNHPF is at $5.43 at Ameritrade

Michael
Guest
0

Every loser stock in my portfolio is from suggestions from the oxford club. And they don’t care if their suggestions are down. They will just say, “I’m sorry you are not happy with the way your portfolio is doing,” as if it is 100% your fault for buying the stocks they suggested to buy. CEMP and CLDX are great examples.

The Oxford Club
Guest
0
Hello Michael, We sincerely apologize for any shortcomings regarding your portfolio. We work hard to mitigate risks for our members and do our best to put a strong emphasis on protecting profits and principal. Please be sure, if you have not already, to read through The Oxford Club’s Pillars of Wealth and understand The Oxford Wealth Pyramid. Each and every member has an entirely different portfolio, made up of personalized factors. Therefore, every recommendation we publish, may not apply to every member. This is why we do our best to build the ultimate mix of strategies to increase returns and… Read more »
jdunigan
Irregular
3

Fox Con is building a very large plant in southeastern Wisconsin.

paintmaker
Irregular
5

Yes, they are….when completed it will be over 10 million sq. ft. and employ over 13,000 people.

StockMidas
Irregular
181
Hon Hai Precision Industry Co., Ltd. (HNHPF) traded in Aug 2008 at ± $6.00. It closed today (i.e. 10 years later) at $5.43. From 52 week high in Aug 2017 it has retraced by 35% to current levels. Despite market cap of $48 Bill still trading on OTC markets at price of ± $5.00 – even at the said spot price TTM P/E is still 10.73 which is indicative of real value. Average daily trading volumes of ± 6,200 of a large cap company raises a red flag. Technically quite horrendous – trading below all three major MA’s in the… Read more »
Dave S.
Guest
0

It’s in a very nice year-long down-trend with no sign of a reversal. Some admirable up-volume Wed and Thu of last week, only exceeded by the down-volume Friday and today. To the watch-list it goes.

karlchilders
Irregular
12

I have invested into a dozen or newsletters over the years. Oxford Club was last man standing because of Alex Green’s recommendations. Not to say he has not had a few turds, but overall quite impressive.
I unsubscribed after noticing Oxford Club recommendations would rise peculiarly the day before I received a buy recommendation.

The Oxford Club
Guest
0

Hello Karl,

Thank you for your feedback. We are sorry to hear we have lost your membership. Unfortunately without specific examples of recommendations you are referring to, we are unable to issue a comment.
However, please feel free to write into our feedback portal: mailbag@oxfordclub.com with the recommendations you found this – and we will be happy to look into this for you.

Sincerely,

Nikki Roeill
Member Experience Coordinator

Jon
Guest
0

Over 8 billion shares, no thank you!

Jon
Guest
0

Over 8 billion shares! No thank you

HigherPurp0se
Guest
0
Globalization is very good for you, isn’t it? If a publisher is publicly touting Foxcon with such unequivocal rhetoric, then the insiders likely want to dump it. The performance of Alexander Green’s investment recommendations consistently underwhelms, but his pitches are polished and persuasive. He made a material error in his newsletter about the largest private construction project in world history. I sent him factual evidence that he was wrong. He never responded and never corrected the newsletter. Hence, I am dubious of Green’s oratory about the value of Foxcon/Hon Hai in anyone’s retirement plan, unless they are an offshore employee… Read more »
Add a Topic
366
The Oxford Club
Guest
0
Hello, Thank you for your feedback. At The Oxford Club we sincerely appreciate member engagement. Especially when it comes to research and speculation. This not only challenges us to produce stronger and the best qualified information, but also lets us know how invested our members are. If you would not mind – we would love to hear from you through our feedback portal, email: mailbag@oxfordclub.com. If you would like, please send us over the factual evidence correction you are referring to from one of our past publications. For any further concerns, questions or clarification, please feel free to contact our… Read more »
pastor
Member
0

What about Tom Gentile’s Fast Fortune Club?

john2handy
Member
6
“and another ant took another grain of wheat” I grow weary of hearing him do the same math over and over and over. He is selling puts. “its a gray blob” The thing about selling puts they don’t tell you is that you have to have the capital to buy 100 shares per contract to write options. Win or lose its a big boys game. But do this math. How much does Tom Gentile make if a thousand takers pay him $1995 for the picks… before Monday morning. He doesn’t even need to be trading stocks at all to make… Read more »
Tom
Guest
0

I don’t have a long history with Fast Fortune Club —only a couple weeks, But the first 2 trades he gave me have been wildly successful, enough to pay for a whole year’s worth of trades twice over, and I’m talking his premium service “Money Calendar Pro”. So I am very happy so far!

david
Guest
0

I spent 45 minutes listening to his presentation. He is slick and convincing and I almost decided to buy his newsletter, that was the end to his presentation. Then I told myself, “Beware of covetousness.” Saved by the Book.

david
Guest
0

Another financial email this morning pushing Green’s video. When everyone starts jumping on the band wagon, I become very suspicious. Reminds me of the greater fool theory. The bottom line is he is trying to sell his newsletter.

Walter D Peebles
Guest
0

Greetings:
I listened to the Oxford Club’s star salesman pitch his $3,00 stock. I got red flags
right from get go. I once was a subscriber back in the 90’s when it was still a paper letter sent by postal service. I figured a leopard usually doesn’t change his spots,
Get your greed glands pulsing in overdrive; then FOMO like this is the last opportunity on earth. I turned off the spiel after 20 minutes. I glad I read Travis’s
review of the secret $3.00 stock. My instincts were apparently correct.
Caveat Emptor.

timcarp1964
Member
6

I work in the electronics industry and I seldom hear Foxconn’s name come up as a contract manufacturer. Granted, I don’t have customers who build the volume like AAPL does. I think there’s still a stigma over Foxconn: https://www.theguardian.com/technology/2017/jun/18/foxconn-life-death-forbidden-city-longhua-suicide-apple-iphone-brian-merchant-one-device-extract

Baz
Guest
0

Can someone explain why Hulbert’s consistently ranks OC #1? Makes one wonder if folks here whom beat down AG/OC are buying/selling EVERY recommendation or only those they, themselves, believe to be worthwhile? Hmm….

aquahalic
Member
4
check cvr medical …This new device with change lives and save millions…..waiting on feds to give ok on it but stock is only 30 cents……Its a longer term hold …prob be another year but they have been building an amazing team….Check there web site,,,, I have 10000 SHARES and look for this to be a multi hundred dollar stock in 5 years……another is international battery metals…..currently it.takes 2 years to produce usable Lithium for batteries…..this company has developed new technology that does that in 24 hours.llll waiting on patent office …….Only 22 cents…….again should be huge within a couple years……get… Read more »
ggswift
Irregular
41

CRRVF CVR Medical and RHHNF International Battery Metals look like 2 stocks going nowhere but DOWN as they fly into the S*** Hole! Look Here CRRVF :