This latest ad for Matt Badiali’s Real Wealth Strategist has all the stuff I love to see in a teaser pitch… a secret undisclosed location, a mysterious leadership team, a huge “you’ll make a fortune” promise as the company “unlocks a tidal wave of wealth,” and, even better, the combination of two hot ticket investing themes: Gold and 5G.
What else could you want?
Well, the name of the stock, for starters — right?
Don’t worry, we’ll get through the clues and uncover that for you. Then you can decide if you feel like subscribing to Real Wealth Strategist (if you do, be careful — this is one of those sneaky ‘tagged on’ subscriptions, they sell it for $79 but also give you a free trial of newsletter you didn’t ask for, Alpha Investor Report, and will renew both of those newsletters for you at $97/year if you don’t cancel).
So let’s jump right in… here’s the lead-in to the ad:
“Former British Special Forces commander and Silicon Valley Titan recently united to revolutionize an estimated $926 billion industry. Their tactical alliance could send this $13 stock soaring — handing groundfloor investors the opportunity of a lifetime….
“On September 12, 2016, a closed-door meeting took place at an undisclosed location, believed to be similar to this one in Northern California.
“One of Silicon Valley’s most powerful tech leaders met privately with a former British Special Forces commander.
“Since then, details of their meeting have slowly leaked to public news sources — details that point to a very audacious and breathtaking plan.
“Their mission: the rapid, full-scale transformation of a globally vital $926 billion industry.”
Exciting, right? There’s even the grainy photo of the “undisclosed location” — and, later, another one of the “unassuming, unmarked warehouse in the foothills of Nevada” that served as the “launch point” for their plan.
But that’s not all! We’re also told that this is a “19th century” business meeting the 21st century, and that this has something to do with the much-ballyhooed transition to 5G wireless networks….
“Everyone is looking at the ‘usual suspects’ — the Googles, Apples and Amazons of the world — when it comes to investing in 5G.
“But, the real gains won’t come from these tech giants….
“The chances of these companies seeing shares double or triple in the near term are next to zero.
“But NO ONE is paying attention to the one industry that could go from the Stone Age to the Modern Age thanks to this new technology.
“And virtually no one is paying any attention to the two guys I told you about earlier…
“Almost no one is talking about the private meeting they held in an undisclosed location…
“Few people realize that they could soon dominate a global industry estimated to be worth $926 billion…
“Or that they are expected to unlock a flood of huge, triple-digit gains—in the stock I’m going to give you details on in a moment.”
The basic argument, as I see it, is that this mining company started investing heavily in technology a few years ago… and therefore it will reap millions by being an early adopter of 5G and related technologies, making it more efficient and effective and helping them to explode in value. He compares this to other “early adopters” like Netflix and Amazon, and also says that this will compare to the last technological breakthrough in the natural resource sector, fracking, and create huge gains…
“Remember, the last time a technological disruption of this magnitude hit the natural resource sector, investors saw gains as high as 4,336% in record time.”Are you getting our free Daily Update
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And he rolls out some entirely spitballed numbers with the bizarre claim that these are “projections”…
“… the company I’ve been telling you about has a first-mover advantage in digitizing an entire industry.
“And with this technology just entering stage 2 of the adoption cycle…
“Early investors could easily see gains of 100%… 200%… even 300% or more in just months.”
How long is “just months,” by the way? Any guesses? No? That’s why they use the term… if the publisher’s lawyer can stand up with a straight face and say, “he meant 74 months, your honor,” then you’re off the hook. The copywriter’s goal is to imply specific (and huge, and short term) gains without actually promising or tying himself to a number.
Badiali trots out his successes to justify his prediction, the big gains he made in stocks like Silvercorp Metals and Jinshan Gold Mines, and those are presumably accurate claims — I think I remember him recommending those stocks when he was at Stansberry five or ten years ago, and they did surge in value… though that was most likely in the 2008-2011 timeframe when gold and silver shot higher following the financial crisis. Certainly neither of those companies was particularly unique or technologically advanced, but they’re still around — and both went on, as pretty much all miners do, to be quite volatile and to lose most of their value when the prices for gold and silver dropped.
So what’s the stock? A few more clues for you:
“For over two years, this company has been aggressively implementing a plan that could help them take over the entire $926 billion mining industry.
“The company’s Chief Operating Officer looked to the tactics and skills he learned as a Special Air Service commando in the British Special Forces for inspiration when building their state-of-the-art, digitized mining network.
“He saw first-hand how electronic and wireless networks give commanders an edge on the battlefield.
“By signing a deal with one of Silicon Valley’s biggest tech outfits, his vision for dominating the mining industry is unfolding at a rapid pace….
“I expect a massive rollout to ALL their mining locations—worldwide.
“By using 5G technology and teleremote operations to connect data analysis, autonomous controls, digitized drills, equipment, vehicles and operations worldwide…
“They could rapidly grab market share and become the premier mining outfit on the planet.”
Badiali throws out some numbers, too, saying that they produced about $6.5 billion worth of gold last year, and that they expect technology to help them drop their production costs and add “over half a billion dollars” in profits.
We also get some of the quotes from respectable-sounding sources that indicate Badiali isn’t alone in his thinking:
“I’m not the only one who thinks so…
“Forbes called this company a ‘mammoth in the making.’
“MarketWatch wrote that it’s becoming a ‘gold-mining giant.’
“CNN said the industry has ‘a new king.'”
And we’re told that institutions are rushing in, like VanEck, Flossback von Storch, and First Eagle Investment… and, more interesting, that there has been some insider buying:
“Insiders recently bought 2.84 million shares for over $42 million
“One insider alone bought $22.4 million in shares.”
So… who is it? This is, sez the Thinkolator, good ol’ Barrick Gold (GOLD, ABX.TO).
And it’s not at $13 anymore, though it was last month — the spike in gold prices over the past few weeks has lit a bit of a fire under pretty much all gold-related equities, and Barrick is now around $17. Don’t worry, that’s not some top-secret 5G initiative that sent Barrick higher and now the story is over, that was just the kind of leveraged move that mining companies always get when gold prices surge quickly higher. Here’s what Barrick has looked like this year (in blue), compared to the GDX ETF of major miners (orange — Barrick is the second largest component, at about 10% of that ETF) and the gold price (red):