This article was originally published about a month ago, on August 20, but there is a new push behind the stock, premised on the idea that “a ferocious short-seller ‘hit piece'” has suppressed the share price — “temporarily,” they believe. So we’re re-publishing our answer here for you, and I’ve added a deeper look into the updated info and the short attack at the bottom. Most of what follows has not been updated since I first published it on 8/20/20.
Chris Wood is peddling his Project 5X Portfolio ($2,497, 30 day refund period) with a pitch about a new chip design company that will soon strike a royalty deal with a big chipmaker, sending its shares soaring. So who is it, and is such a deal expected by other folks? Let’s dig in and check it out.
The ad is full of urgency, as is no surprise — they say that there are “only 50 openings” for subscribers, and that “this microcap is going to make its big announcement as soon as tonight” so “it’s now or never” you have to sign up NOW NOW NOW to be ready.
You won’t often find a newsletter actually turning away subscribers, of course, though some small cap and option newsletters do have to restrict their subscriber base to make it possible for folks to follow the recommendations without blowing up the share price… but the primary reason for talk of “limiting signups” is that it spurs you to make a decision, quickly, before you’ve had time to think it over. And things like “only 50 openings” often refer to a single day of a long-running ad campaign, or some other technicality, but who knows. At $2,497/yr, getting even just 50 signups is a decent campaign for a smaller publisher — that’s $125,000 in recurring revenue. Even those of us who sit on golden thrones here at Castle Gumshoe would sit up and take notice of that.
This is the lead-in to the ad that got so many readers excited:
“An imminent announcement is about to 109X this microcap’s business OVERNIGHT!
“A tiny startup with just 17 employees (mostly PhD scientists) has made a game-changing breakthrough that Amazon, Apple, and Intel are dying to get their hands on.
“This microcap is about to announce a landmark royalty deal that could 109X its annual revenue overnight!
“Here’s how ordinary investors can buy into this American microcap for pocket change before it explodes to $25+/sh.”
And the reason Wood says this company’s facing a near-term deal? They’ve “fixed” the fact that Moore’s Law has essentially ended. Here’s a bit from the ad:
“The basic idea of Moore’s Law is that computers continuously double in power and shrink in size.
“This constant doubling has led to ‘exponential growth’ in computing power…
“… which is why one iPhone is 4.3 MILLION times more powerful than the supercomputer that guided Neil Armstrong to the moon.”
Just think… the next Neil Armstrong might be able to snapchat a photo from the moon. Maybe with some cute bunny ears or a heartfelt emoji.
And why have people been pulling at the reins of Moore’s Law lately? More from Wood…
“Today, at the ‘bleeding edge’ of tech, parts of computer chips are so small they’re measured in atoms!
“Problem is… physics says you can’t get smaller than an atom.
“Microchips are as small as they can get.
“That’s right… Moore’s Law is dead in the water.”
So “smaller and smaller” progress is slowing up, but that doesn’t mean chips can’t get better and faster in other ways. And apparently this company Wood is teasing has invented a new semiconductor material for just that purpose…
“They’ve fused silicon with another element to create a new material.
“Unlike silicon, this new material does not exist in nature.Are you getting our free Daily Update
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“It was quantum engineered in a Silicon Valley lab to be ‘superconductive.'”
They include a photo of part of the patent, which means this gets awfully easy for the Thinkolator — and, frankly we don’t even need to pull it out of the garage for this, anyone can look up a patent number. This one is patent 10,636,879 B2, from April 28, 2020.
And that patent was originally filed on June 13, 2018 (these things tend to take a while), and has been assigned to Atomera (ATOM). The patent can be viewed here, should you be so inclined.
It’s about a “Method for Making DRAM with Recessed Channel Array Transistor (RCAT) Including a Superlattice.” But, uh, you totally knew all about that before, right? Yeah, me too.
Sorry, I can’t resist being a smartass. I know almost nothing about chip design, and I can barely understand a quarter of what they describe.
But sure, let’s take them at their word when the teasermeisters tell us this is the critical invention that will keep advancements moving forward now that Moore’s Law is “broken.” What exactly is the point of these inventions? More from the ad:
“According to tech news publication New Electronics, the technology can ‘improve the performance and power efficiency of devices,’ while also ‘reducing their cost.’
“MarketWatch says this breakthrough has already proven to deliver a ‘performance improvement of up to 50%.’
“And this new breakthrough microchip technology is the ‘only game in town.’
“It’s protected by a fortress of 234 patents.
“The latest one was just approved by the US patent office.”
And, of course, there’s some urgency…
“… the $8 microcap is in active negotiations with the world’s four largest chipmakers.
“I believe a game-changing royalty deal is imminent.”
And Wood provides a little back story as well, he says he has been following the stock for a while and looking for a good entry time…
“The $8 microcap passed my strict ‘tiny stock, BIG BREAKTHROUGH’ formula a year and a half ago.
“So I immediately got to work talking to my Silicon Valley contacts.
“When I confirmed that its breakthrough was the real deal…
“I knew it would likely be the biggest score I ever delivered to my readers.
“After all… the world needs its patented technology.
“We need faster microchips for 5G, self-driving cars, artificial intelligence, and any other lucrative tech you can think of.
“Which means this tiny company’s tech could soon be in billions of cutting-edge devices….
“But I refused to recommend the stock until I knew a big announcement was imminent.
“Now, after a year and a half of “stalking” this $8 microcap…
“It’s GO TIME.”
Then we get into the “urgency” bit…
“The company has a history of making big announcements around 5PM PST.
“And I DO NOT expect them to wait until a scheduled quarterly earnings release.
“This is too big to sit on.
“As early as tonight, this company is going to announce a landmark deal that causes revenue to jump up to 109X overnight.”
Why would it jump so fast, you ask? The ad explains his reasoning:
“Which is only possible because the $8 microcap is a royalty collector.
“It doesn’t produce a physical product.
“Instead, it licenses its patented material to the highest bidders.
“Then it gets paid every time they use it to make a microchip.
“Royalties are the only way a business can 100X its revenue overnight….
“The $8 microcap barely pulled in half a million dollars last year.
“And my calculations show that just one signed royalty contract could cause its revenue to jump to $58 million.”
He also hints at the company being acquired…
“I know for a fact that several giant companies like Intel are looking at acquiring the $8 microcap.
“Given the game-changing nature of its breakthrough, I doubt it’d sell for less than $100/share.
“But let’s be conservative and say it gets bought out for $75/share by Intel.
“If you get in today, before the big 109X announcement, you’re looking at a nice 838% profit.”
And just to be sure it’s really Atomera being teased, Wood does drop a few other hints:
“The $8 microcap was founded by a bona-fide genius.
“He’s an English physicist from Oxford…
“Who helped invent the fiber optic network the modern