This article was originally published on May 19, and the ad we’re covering has been heavily promoted over the past month, leading up to a big final push before yesterday’s supposed catalyst date of June 13, when Blanco (or his ad copywriter) was certain that Apple would announce some big news about “this tiny company”. So far, it hasn’t gone well over the past 24 hours for that teased stock, which turned out to be Energous (WATT)… probably mostly because the ad was so heavily circulated that it set up wildly inappropriate expectations for a not-ready-for-prime-time technology.
The article below has not been updated since May 19, but I have added an extra P.S at the bottom to show what an overhyped catalyst that turns out to be an empty promise can do to a small cap stock.
You very likely already know the solution to this teaser ad — it comes in from Ray Blanco, and it’s an ad for Agora’s Microcap Millionaires. In case you get confused, that’s not the same as the Microcap Millionaires service at microcapmillionaires.com — Agora Financial’s offering is a “small cap” stock newsletter, microcapmillionaires.com looks like it’s a penny stock trading service from a one-guy operation. Agora Financial’s Microcap Millionaires is edited by Greg Guenthner these days, it’ll run you $5,000 a year if you choose to subscribe, and apparently Ray Blanco provides some of the technology research or analysis.
So what is it that they say is the “Deadly Flaw” in every smartphone, tablet, etc. that’s put out by Samsung, Apple and everyone else? And what’s the company who can “expose” (and presumably profit from) that deadly flaw?
Well, we’ll be a bit uncharacteristic and tell you part of the answer up front (I know, that’s not very sporting)… they’re saying that the “deadly flaw” is that all these portable devices use batteries, and the batteries don’t last long enough and have to be plugged in to be recharged.
Which means, of course, that the “No-Name Company” who can expose this deadly flaw and solve this problem for the world is a company that provides wireless charging… which, these days, is almost certain to mean that you’re hinting at Energous (WATT), the interesting, promotional, and very much pre-commercial wireless charging technology company.
That you could have guessed almost from the first moments of the ad… and you’ve probably seen several articles we’ve done before about Energous, because it’s been teased by a few different newsletter blokes over the past year or so. But let’s look at the promises in the ad, double check that we’re right about the company they’re teasing, and see if there really is anything to this 80,000% gain promise, or the “back-room deal” that’s going to hit the headlines on June 13 and send the stock soaring.
Ready? Here’s the first part of the ad, just so you can see how intensely they’re emoting about this pick:
“On June 13th, This No-Name Company Is Set to Expose the #1 “Deadly Flaw” in Every Single Smartphone and Tablet on the Planet…
“(And Tee This Bleeding-Edge Industry Up for a 79,900% Multi-Year Tear)….
“… one California whiz-kid cracked a 117 year-old technology riddle (and uncovered a crippling “defect” in Silicon Valley’s “smart device” empire…)
“Unleashing a brand-new high-tech sector that has Goldman Sachs, Vanguard and Morgan Stanley betting millions… Google and the U.S. Government scrambling to play catch-up…and whispers of a shocking back-room deal that’s poised to hit the headlines in precisely 38 days…
“Setting the stage for YOU to capture ‘ground floor’ gains in a sector projected to grow 3,170% over the next 8 months… 10,140% over the next 3 years… and nearly 80,000% in the long run.”
Notice how it’s the “sector” that’s expected to grow 3,170% over the next eight months… whatever that means, and that they aren’t technically promising that this company will go up 80,000% in the long run. Which is probably smart, and perhaps part of the reason why the ad made it past Agora’s lawyers. But certainly the implication is there — there’s a “shocking back-room deal” that is going to hit precisely on June 13, and it will make you filthy, stinkin’, Scrooge McDuck rich.
And yes, the ad is very much about wireless charging — but, as is the case