I’ve gotten a bunch of reader questions over the last week or so about Alex Koyfman’s latest teaser pitch for a “Plastic Killer” out of Canada, so that’s where the Thinkolator is pointed today.
The ad is for Angel Publishing’s Microcap Insider (currently being sold for $1,999, 90-day refund period), and this is the part of the introductory email that caught my eye:
“One little-known Canadian company is about to disrupt the global $579 billion plastic market…
“Its patented biological plastic alternative could be worth billions soon….
“… major brands could soon depend on this company’s plastic alternative, developed in cooperation with the University of British Columbia.
“Wealthy insiders have poured almost $35 millions into this company… but it was closed to regular investors — until recently.”
OK, so that probably means it was funded by private placements or venture capital, and not with a huge profile — $35 million is a pretty small amount in this context.
And the promise is for huge gains:
“Right now, for a brief window, you have a chance to get in on the ground floor.
“Very soon, giants like Nestlé or Keurig could run to this tiny company for help, as they’ll have to replace their standard plastics.
“As a result, this company could rise as much as 6,896% practically overnight.
“Today you can get in on this opportunity for less than $5.”
And the email intro and the actual ad itself try to take advantage of polarization and fears of globalization, since they know that a little rising anger about “radical environmentalists” is going to get a substantial portion of their mailing list pretty fired up… there’s a lot of overlap for any marketing campaign focused on either “investing” or “conservative” political stuff — not least because investment newsletters have historically found their most fruitful hunting in the relatively affluent 50-60+ demographic, which also tends to be relatively conservative.
(That’s not a judgement, by the way, I just like to remind people that marketers are expert at poking you where you’re most sensitive — and for a lot of people, that’s related to hot-button political issues. So whatever side of any issue you’re on, remember that when you hear or read an advertisement and start nodding your head and saying “finally someone tells the truth,” whether that’s Elizabeth Warren or Donald Trump, or feeling some old-time religion drumbeats welling up in your soul, you’re being played by someone who’s trying desperately to sell. Odds are pretty good that they’re just trying to fire up your rawest emotions… because the more an ad plays to core beliefs or hot-button issues, the more affinity you’ll feel with the advertiser as a kindred spirit who’s on the right side of what you think the important debates might be, and the more likely you are to pull out your credit card).
The globalist/environmentalist hot button here is the Paris Agreement, the most recent climate accord that much of the world has signed on to, and we’re told that there’s an investment opportunity coming out of Paris…
“As you may know, the Paris Agreement is an international treaty on climate change.
“However, the effects of this treaty will go way beyond just carbon reduction and clean air.
“Because countries across the globe are about to utilize the Paris Agreement to unleash a cutthroat economic battle….
“I’ve discovered one off-the-radar investment that’s expected to skyrocket because of this battle.
“This investment already soared 1,172% in less than six months.”
And the promise that there’s an upcoming catalyst which could make it soar even higher…
“With such huge gains already made, you might think you’ve missed this opportunity…Are you getting our free Daily Update
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“But a single event scheduled for November 12, 2021, could make this investment rise much further…”
And why is that? Essentially, it’s because Koyfman thinks the next followup meeting on the Paris Agreement will lead to carbon tariffs or other similar pressure on carbon-emitting countries, which will further incentivize businesses that can reduce emissions, and he thinks this secret company of his, the “plastic killer,” will be a big winner from that trend.
From the ad:
“… some countries plan to use carbon tariffs to force other states into compliance.
“As soon as this happens, the bioplastic sector could skyrocket…
“Because countries and businesses will have no other choice than finding alternatives to polluters like plastic. Otherwise their economic survival is at risk
“And I expect this all to be kicked off on November 12, 2021.
“That’s when a conference called COP 26 is taking place…
“It’s the U.N. Climate Change Conference of the Parties, a gathering of the parties to the Paris Agreement….
“As soon as one major industrialized country announces the enforcement of carbon tariffs, other countries will jump on the bandwagon.
“And it could happen as early as November 12 at the next Conference of the Parties.”
Will carbon tariffs or anything else that substantially boosts the demand for bioplastics come out of this meeting in Dublin? I have no idea. Maybe.
Kofyman points out the importance of a greener plastics business, which is part of the backdrop here…
“And there’s one huge contributor to carbon emissions most investors don’t have on their radar.
“It warms the planet twice as much as aviation and is the fifth-highest emitter in the world.
“According to the Center for International Environmental Law, this polluter is expected to account for 56 billion tons of carbon between now and 2050.
“That’s about 50 times the annual emissions of all of the coal power plants in the U.S.
“Solving this problem will be crucial for every country that wants to economically survive the zero-carbon battle.
“And I’ve found a little-known company that has developed a solution against the disastrous effects of this polluter in cooperation with the University of British Columbia.”
What other clues do we get about this company? Here are a few:
“Even the Canadian government has poured a ton of money into this firm….
“Because it wants to ensure “high-speed manufacturing“ of this company’s products.
“The Canadian minister of innovation went on record to say this firm is helping to secure ‘Canadian technological leadership.'”
And some specific hints, which I always appreciate — we get that “1,172%” stock chart of its past performance, but then also this:
“The stock is trading at a $100 million market cap as of this publication.
“To put that in the context of its competition…
“Some of the biggest players in this industry have market caps well above $200 billion.”
So what does this “plastic killer” company actually make? From the ad:
“This company figured out how to make a plastic alternative that doesn’t use any energy-intensive ethane at all…
“That can stand the amount of pressure and heat coffee pods have to endure…
“That doesn’t impede taste…
“And that essentially vanishes from the face of the Earth in as little as 35 days, leaving no waste and emitting practically no carbon.
“To achieve this remarkable feat, this company designed its own plant-based resins in cooperation with the University of British Columbia….
“Developing this bioplastic took this company five years and cost an astonishing $35 million.
“Wealthy venture capitalists and the Canadian government pumped all that cash into this firm while it was still private.”
So yes, while perhaps the dream is taking over the global plastics industry… right now they’re making replacements for the plastic pods and K-cups used in single-serve coffee machines. In Koyfman’s words…
“Even though this is an extremely profitable $29 billion market, coffee pods are just a showcase of this company’s ability to produce a high-performance plastic alternative.
“It’s aiming at the much bigger global plastic market, which is valued at as much as $579 billion.
“With a market cap as small as this company’s, it has to capture only a tiny fraction of all this cash to go parabolic.”
And they’ve got patents…
“With 10 patent a