This article was originally published on June 29, when Alexander Green was first touting this as the “#1 Microcap for 2020” — that ad has been repurposed and lightly updated as they pitch the same stock as the “#1 Microcap for 2021,” so we’re re-posting this here to answer reader questions. We have not updated the article below since June 29, 2020, the latest version of the ad is still dated October, 2020, and the shares are still within 10% or so of where they were when this article was written.
The emails that I started getting a few days ago start out with a tease about a secret meeting…
“Right near the Pacific coast…
“Where you can smell the salt and volcanic dust in the air…
“There lies a secret compound… one visited by some of the brightest financial minds in the world.”
And, it turns out, that’s not really a “secret compound”, it’s just a nice hotel resort in Nicaragua called Ranch Santana. Looks like a beautiful place, and it’s where the Oxford Club has hosted some of their subscriber confabs in the past — so it should be no big surprise that the figurehead of the Oxford Club, Alexander Green, gave a presentation at a meeting there at some point (presumably before the COVID shutdown, given the travel restrictions we’re all under these days).
Or, as the tease puts it, “Alexander Green was one of the few people on the planet who secured an invite.”
I poke fun at this kind of silliness partly because it begs for it… but there’s a real reason, too: If we’re to take ourselves seriously as investors, we have to get rid of the mythology that there’s a secret cabal of “in the know” people who are having private meetings and accurately predicting the path of the stock market. Sure, there are investment conferences and gatherings all the time, and I often learn interesting things when I attend them, but the people who puff themselves up as all-knowing gurus are not more brilliant than you, and as a group they have no more certainty than you about which stocks will surge higher or fall over the next six months. They have to pretend they do, because that’s how you get subscribers, by puffing yourself up, but try to take these pitches and commentaries as just another piece of an education — not leadership by some infallible figurehead and an entree into a secret “club.”
And, frankly, only go to the conferences if you love traveling and meeting people and want to swim in that lovely-looking pool at Rancho Santana, or stroll that pretty Nicaraguan beach. Which you can do on your own, of course, you can get your own room in that “secret compound” for a little under $300 a night this summer.
But anyway I should get back to the point — the email launched into an “interview” with Alexander Green and a pitch for his Oxford Microcap Trader service, which will run you $1,975 a year (and, as is pretty typical with the “upsell” newsletters on which publishers probably make most of their profit, no possibility of a refund).
This is what they’re really selling, once the sales pitch for this Pacific enclave ends and the stock spiel gets underway…
“Alexander Green Reveals His… #1 Microcap for 2020
“Discover the Tiny $4 Tech Stock With Technology That Will Replace Smartphones”
So that’s interesting… what’s the story? More from the ad:
“You see, Alex and his team just spent a week at an invitation-only investment summit.
“It was held at a beautiful 2,700-acre resort on the Pacific coast with many of the world’s top financial minds to share their very best ideas.
“During the summit… Alex told the story of a $4 stock and its new technology that will replace smartphones.
“The company is one of those transformative disruptors – like Amazon, Apple and Netflix – that come along only once or twice in a generation.
“And despite hearing about dozens of great ideas at the event…
“ALL anyone wanted to ask Alex was… “What on earth is the name of this $4 stock!?”
And conveniently enough, that’s what I want to know, too… so let’s dig in and see what clues he drops in this “interview” with Corrina Sullivan.
“They have NO IDEA this stock exists.Are you getting our free Daily Update
"reveal" emails? If not,
just click here...
“Yet it might just be the single stock with the most upside available in the markets today.”
And talks about how the stock is “cheap,” trading at 0.8X book value, and yet has very high revenue growth…
“revenue growth for the last five quarters:
“63%… 37%… 37%… 73%… 72%…”
Whatever could it be that’s going to “replace smartphones?”
“This company is a front-runner in a MASSIVE new $23 billion industry.
“The industry is expected to grow to as much as $77 billion by 2025.”
And it’s not just a startup idea, it already has a decent-sized business…
“It has more market share in this industry than even Google.
“Because it has 32 ironclad patents on a new type of technology that’s rapidly changing the world.”
As the Oxford Club has done for years now with Alexander Green’s “son of a police officer” pitch about a “secret $3 stock,” they also hint that this one doesn’t trade like a normal stock…
“It does NOT trade the normal way, on the Nasdaq or NYSE.
“Instead, there’s a special way to purchase bundles of four shares at a time in your brokerage account.
“Most investors don’t know this.
“But if you get shares this way… BEFORE they come available individually on the regular exchanges, you can have a big advantage over regular investors.”
So that’s a good bunch of clues… what does Green mean when he says “microcap?” This is what he says, which will help us narrow down the company by size…
“The penny stock landscape is littered with failed companies that had great stories but no fundamental business behind them.
“And they usually are good for one thing and one thing only…
“Microcaps, on the other hand, are a different story.
“They aren’t pipe dream companies with no sales.
“Rather, microcaps are great little under-the-radar businesses that have a better chance to become midcaps… then large caps… or be bought out along the way.
“So I’m looking for companies that are below a $1 billion market cap.
“Technically, microcaps are defined as being under $300 million, but if it’s a great company, I’m not going turn my nose up at a $900 million company that meets my criteria.
“That’s still small enough to have plenty of room to grow.”
The two examples he gives as past picks are Tandem Diabetes (TNDM) and Applied Optoelectronics (AAOI), which he calls “two of the biggest microcap winners of the last few years”
I don’t know when Green piched those stocks, but we’ll take him at his word that he picked them before huge gains… and I also don’t know when he recommended selling those stocks, if he has. AAOI was indeed available around $10 in 2016, and then shot up to about $100 in late 2017… though it has since come back down to, yes, about $10. TNDM has gone from a “busted IPO” microcap that fell from $20 to pennies from 2013 to 2017 to a stock that started surging mid-2018 and is now close to $90, with a $5+ billion market cap, so if you picked it anytime before 2018 and just held on, you’re feeling pretty good.
So what does this secret company do? Green says they’re involved in “wearables” …
“Health and fitness trackers…
“My #1 microcap even makes ‘s