I have a confession to make… sometimes I’m too quick to filter through the insane piles of junk email that stack up on my desk each morning. So many email teaser ads from newsletters have a long shelf life, running over and over for years, that I sometimes see the intro to an ad, say “covered it!” and toss it aside.
But sometimes those ads change. So when a reader persisted in following up with me about a Paul Mampilly ad, I thought I should double-check it. This is an ad that has Mampilly’s typical presentation “video” and talks about those “secret warehouses” that contain the future. Here’s how the ad starts:
“These Warehouses Hold the Key to a Potential Multi-Billion Dollar Revolution…
“With a $15 stock, early investors could take advantage of the ‘most important technology since the internet itself.'”
And I thought that was yet another repeat of Mampilly’s pitch for Advanced Micro Devices (AMD) that ran almost nonstop for two years with a similar “in these warehouses” pitch and the same stock photos used as tinsel on the tree… but, it turns out, I was wrong. There have been some little tweaks, like referring to this now as a “$15 stock” in that headline instead of promising “huge profits as this brand new industry surges up to 77,400%.”
So the general push is unchanged, this is still all about how massive data centers around the world hold that “secret” that is blockchain technology, and how that will change the world as it streamlines payment technologies and much of the rest of the internet… but now he’s pitching a different company.
So we wanna know what it is, right? AMD did awfully well, of course, will Mampilly capture lightning in a bottle again?
In fact, the clues in this pitch now specifically rule out the chipmakers who make blockchain possible (which was mostly AMD and NVIDIA in the first crypto boom, though now mining-specific chipsets have been built by others), and he’s hinting at an entirely different kind of company. Here’s a bit from the pitch:
“These processors are made by a few different companies— like Intel and others around the world. But these chipmakers are already expensive and that’s not where you should put your money.
“I’ve identified one company based in Sunnyvale, California that’s been overlooked by Wall Street—it doesn’t make the chips themselves, but the interfacing software that enables these chips to communicate with each other.
“This technology is as obscure as it is essential. And the market is oblivious to this company right now— its trading at only $15 per share.
“This is a huge opportunity.
“Historically, this stock has performed well, gaining an average of 22% every year for the last 23 years.
“And I believe it’s about to explode much higher.”
So… what other clues do we get about this little company?
“This company finalized a historic deal with Visa last October… the credit card giant acquired this firm’s blockchain integration software.
“This tech is about to be integrated with roughly 90% of Visa’s total payment volume…
“That’s nearly $11 trillion worth of global payments every year.
“When this integration is complete, other companies are likely to come calling…”
And there are some numbers attached, too, which always makes the Thinkolator’s job just a little easier… and it helps us to confirm those answers we already suspect:
“…the company is predicting a massive revenue increase over the next year—from $224 million at the end of 2019 to a whopping $350 million just over one year from now.”
So what’s our story stock this time around? Those clues point the Thinkolator to one specific company, Rambus (RMBS), which has been around for about 30 years and is best-known for developing memory interface technologies that speed up the movement of stored data within a computer (that’s an oversimplification, I’m sure). They’ve never been a chipmaker, really, but their goal has always been to license their designs, including RDRAM memory, and over the past 20 years they’ve been asserting that they own important patents in SDRAM and DDR memory technology. For a while they were derided in some quarters as a “patent troll,” just trying to squeeze money out of other companies like Micron and NVIDIA, but they have been somewhat more collaborative in recent years and are trying to do more licensing and joint development of memory technologies. At least, that’s the way their history appears to me — I have not followed the company