Yeah, probably not. But that’s the promise — and there is some mathematical possibility that it could happen, if all the ducks line up in a row and this company becomes dominant. You never know, I suppose, but let’s go into this with somewhat more realistic possibilities… like, “this company could double.” That I could maybe buy — it is, after all, a microcap stock that has some revenue and is a longstanding business, and crazier things have happened.
How’s that for a teaser of an intro? The ad we’re looking at today, which implies that this $50 million company will become a global giant on par with Apple, Facebook and Google (all three of which I own, for disclosure’s sake), is from Alex Koyfman for his Penny Stock Millionaire newsletter — he’d like you to cough up $500 to subscribe, and after that he’ll tell you what company this is…
… but since you’re here at Stock Gumshoe, you probably know that’s now how we do things. We take the clues and hints that ads like this drop, figure out what they’re actually talking about, and discuss it in the light of day… often, we find that once you remove the allure of “secret,” it’s a lot easier to see the full picture about a company (thanks to the quirks of human psychology, you’re probably less likely to think about a stock critically if you’ve just paid to learn about it — your brain still wants to remind you that subscribing to that newsletter was a brilliant choice, therefore the stock that enticed you must be brilliant as well… kind of like when you peruse the car ads after you’ve already bought your new car, just to remind yourself that you’re brilliant).
Sometimes that means the company ends up appealing to you (or me), sometimes not. But at least we can learn about a new idea, perhaps, and think about it as rationally as we’re able. So… let’s begin.
The ad promises the moon, of course, here’s a bit more comparing this “secret” company to Apple, Google and Facebook…
“All told, these three companies command a combined market capitalization of more than $1.3 trillion….
“And yet all three of these companies put together still do not equal the number of users about to be scooped up by a company you’ve probably never even heard of…
“A company still so early in its development that today’s shareholders will likely see between 14 and 20 times their money back within the next 12 to 18 months and perhaps 10 times that much in the next three to five years.
“It’s a disruptive young company that’s already working to make the business models of the Big Three as obsolete as the oil monopolies of the early 20th century.
“Few know the company’s name. You’ve probably never seen its product. But in just a couple of years, this company — which right now is valued at less than 1/10,000 the market cap of Apple — could be sitting on the single-biggest user base the world has ever seen.”
This is all about bringing the internet to people who don’t have access to it today — which is where Koyfman gets those lofty numbers about billions of users, those are based on the number of people that aren’t currently able to connect to the internet, mostly (though not entirely) in developing nations.
Which is certainly a focus of a lot of companies — expanding the reach of the internet is both a social goal, improving communication and education and access to government services, among other things, and a business goal, connecting more individuals to the internet so you can sell them things or advertise to them. That’s part of the reason why Facebook is funding Internet.org, to try to bring basic internet services for free to cellphones in Africa and India, and why Google is experimenting with blimps and drones to try to extend the reach of the internet to the unwired and un-data-connected corners of the earth (amon