Lots of questions rolling in about this one — it’s a pitch for Sean Brodrick’s Oxford Resource Explorer, which these days is offered at $79 a year (or $49 for email-only)… though the letter is actually signed by David Fessler, one of their analysts who has generally been touted as an energy and resource expert in ads we’ve covered in the past.
Here’s how the ad starts:
“The Only Patented ‘Cure’ That Could Save 1.5 Million Lives Annually…
“IN THIS TINY SQUARE
“Surprisingly, the company behind this square technology has NOTHING to do with healthcare.
“Yet is is poised to lead from $340 million in revenue… to $19.2 BILLION… an astonishing 5,547% increase!”
That’s accompanied by a photo of what looks like a fairly large semiconductor chip being held in a gloved hand (2cm by 2cm is far, far larger than the chips in your phone or tablet, for example, we’re used to seeing tiny stuff pitched these days).
And the health bit gets pushed further still:
“It may appear unimpressive, but inside this tiny square lies a major technological breakthrough.
“It’s not a new microprocessor… or a new pacemaker… and it’s not a magnetic cancer-fighting device or anything like that.
“But thanks to this 2.5 by 2.5 centimeter square, you can have virtual immunity from one of the most preventable causes of death in the world.
“One that, according to the World Health Organization, kills 1.5 million people every year.”
We’ll skip ahead a bit and say that yes, what they’re talking about is auto accidents. Humans, on average, are terrible drivers… and despite the fact that cars have gotten much safer over the years with airbags and seat belts and anti lock brakes and safer roads and all kinds of other automotive safety features, auto accidents still kill a lot of people. The promise here is that reducing reliance on human attention, reaction time, and instant and precise decision making will improve driving — just like it has improved factory automation and so many other aspects of modern life.
More on this hinted-at company:
“And one company has a patent moat around this entire lifesaving technology.
“It has 18 U.S. patents and six European patents and has applied for 52 others worldwide.
“Analysts call it ‘An intellectual property powerhouse.’
“In short, it’s locked out ALL competition for the foreseeable future.
“In fact, the CEO of Baron Capital (which manages $26 billion in assets) flat-out says this company ‘has a monopoly.’
“Now, I should tell you… the company in control of this lifesaving technology is NOT a biotech or a healthcare company.
“But it’s about to change our world in ways never before imagined.”
What investor wouldn’t want that, right? A big trend, a patent moat, locking out all competition… what could go wrong?
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Fessler then goes on to explain how much money is pouring into this industry… which, if you’re a thoughtful investor, should make you wary. The fact that Andreessen Horowitz, Google, Apple, and the U.S. Government are all investing billions into this industry does not reassure me that “one company and its tiny square” are at the forefront and poised to maintain a monopoly.
But let’s set that skepticism aside for just a moment and get a few more clues from the ad so we can ID the stock for you… that way, you can think for yourself and leave the marketing pitch behind before you even consider investing in the company. Here’s a bit more from Fessler:
“You see, there’s one company with a heavily patented solution to this massive problem.
“18 patents in the U.S, six in Europe and 52 pending worldwide.<