Today, for your holiday reading pleasure, we’re re-sharing a teaser solution that’s still being asked about (and apparently still being heavily promoted by the Sovereign Society folks).
The original solution to this teaser appeared in a Friday File commentary, so some of you may not have seen it. I’ve excerpted most of the teaser solution from that Friday File below, and then added an update on the company to the end of today’s article. The ad started running about four months ago, and my teaser solution first appeared on June 3 — the ad has not changed significantly as far as I can tell, but it is running heavily enough again to send questions my way… and what follows is mostly unchanged as well (except for the update at the bottom).
And yes, this is an instance where my curmudgeonliness would have resulted in a missed opportunity, at least at the moment — I wasn’t very enthusiastic about the pick, but as of today the stock is up pretty big since the teaser started running (more on that in a minute).
This pitch, which a few of you have asked about already, is from Paul Mampilly in an ad for a service called Profits Unlimited — and it’s another “Internet of Things” spiel… which is actually a little bit refreshing. The internet of things is a big deal, it is important, and it will have a substantial economic impact over the next decade even if the consumer part of it (the smart home, wearables, etc.) doesn’t take off as much as we expect or in the precise way that we expect. The increasing “sensorization” of the world, with remote monitoring and sensor networks checking on bridge integrity and jet engine performance and traffic and everything else you can imagine is going to proceed apace.
So it’s nice to be able to look at something like this with a genuine and powerful business trend behind it, instead of something like virtual reality that I think is much more uncertain, and much further from widespread deployment (outside of video gaming, at least). Whether that means there’s a great stock idea coming from Mampilly, well, that’s another question entirely — the newsletter marketing industry thrives on the power of big ideas, and on the ability of a crafty copywriter to go from that big idea to the “one stock that will rule the day” without stopping in the middle to consider competition, margins or other boring and distracting things like that.
Or as I like to put it, the promises are often akin to “Rain coming, you will get rich by buying stock in Acme Umbrella.” There’s an appealing logic that rings true, but when you think it through things are rarely that simple. There are other umbrella companies, to say nothing of ponchos and raincoats, and maybe it won’t rain for as long as you thought, or new umbrella companies will cut their prices and try to take share once they realize it’s going to rain for years.
But anyway, at least it’s a real trend that’s already pretty well established, and there’s little that’s faddish or particularly speculative about a lot of the projections of growth. More stuff is getting connected to the internet, we’re collecting more important data about more stuff in the real world, and that is going to continue.
Paul Mampilly has been a newsletter guy for at least several years — he started out at Palm Beach Letter, I think, and pretty quickly moved over to run the FDA Trader for Agora Financial, then ran Professional Speculator for Stansberry during that letter’s very short life… and now he’s running this Profits Unlimited service, which appears to be a new “entry level” newsletter for the Sovereign Society. That’s a lot of moving around, which typically seems to happen when newsletters are unsuccessful at quickly building a sustaining level of readership (which is not necessarily the same thing as having an unsuccessful investing record).
So what’s Paul Mampilly’s stock now?
Here’s a bit of the ad, to give you a taste:
“The Greatest Innovation In History… 7-Times Bigger Than Computers, Tablets And Smartphones … COMBINED!
“Experts Predict 50 Billion Devices Will Utilize This New Technology By 2020. Early Investors Stand To Reap Tremendous Rewards As Its Growth Surges 8,000%…”
And he repeatedly shows the photo of a tiny little doohickey on top of a dime, to emphasize the teensiness. That little doohickey is some sort of sensor, though it’s not particularly specific about what kind — and, as you can imagine just by thinking about the number of chips and sensors that are in your phone, or in smaller stuff like a fitbit or Apple Watch, being tiny enough to fit dozens of them on a dime is not that shocking and doesn’t really narrow it down.
The pitch is, of course, hot and heavy:
“Insiders are calling the science behind it ‘the greatest innovation in history,’ ;the future of technology’ and the breakthrough that will ignite the ‘second Industrial Revolution.’
“That’s because this tiny invention is predicted to ‘rival past technological marvels, such as the printing press, the steam engine, and electricity’…
“Ushering in ‘a period of economic nirvana.'”
I don’t know about that “economic nirvana” bit, but otherwise I generally agree — with the caveat that the world has grown far more complex, and this is far more complex a budding network than was the internet or the railroad int early days, and could be far more distributed and chaotic in its development, so I think there’s a huge amount of guessing that’s taking place about exactly how it will evolve and who will benefit most.
I’ve already gone on for probably too long in chattering to you today, so you can check out his ad if you want to see the rest of the breathless lead-in, but let’s just jump to the specific clues about Mampilly’s current favored stock:
“In a moment, I’ll tell you about the one little device that’s at the forefront of this technological revolution, and who makes it.
“Most importantly, I’ll giv