“The Apple partner set for strongest 2012

"Urgent Update" teaser from Yiannis Mostrous for "Taiwan Builds Tomorrow" Special Report

By Travis Johnson, Stock Gumshoe, December 7, 2011

This particular ad, or one very much like it with a few edits, has been running for about six weeks — it’s a pitch to get you to subscribe to Global Investment Strategist from Yiannis Mostrous ($497, thanks very much), and it’s all about a key Apple (AAPL) supplier.

Which has been a hot investing theme for a long time — pitch the companies that are component suppliers to Apple’s super-hot iPhone or iPad products (or before that, the suppliers who made key parts for iPods), and sometimes these ideas work out pretty well … though the big bumps tend to be for small companies who get their first contract for an iPhone chip (or something similar) that lets them dramatically ramp up production.

And of course, despite the fact that this ad first ran over a month ago, we get the “Urgent” headline about this stock that will have the “strongest 2012.” Is it urgent? And will it be a good buy for you for the next year? Well, how about we identify the stock for you … and then you can then dig deep into your heart to make your investing decision.

Here’s the meat of the ad:

“I was discussing one of Apple’s new contracts with a friend. Specifically, it was about Apple’s new manufacturing contract for the A6 processor, the next generation in the cutting-edge processor series that powers the iPad and the iPhone. At first, I wasn’t surprised by what I heard; I’ve known since mid-August about Apple’s preliminary manufacturing trials. I’ve spent months profiling this company for our subscribers, and I don’t miss a detail when it comes to the latest news.

“But what my friend said next caught my attention. She lowered her voice and detailed the very latest (but legal) information on this new Apple contract, and how Apple’s recently released iPhone 4S will boost its importance. Her perspective offered an important window into the hidden clockwork of Apple.”

Sounds pretty exciting, right? Here are a few specifics from the ad that we’ll be able to toss into the hopper of the Thinkolator in a moment:

“My new pick is especially strong: They have 30 years of experience in their industry, and they’ve never fallen behind, gaining more momentum and technological experience with each passing year.

“This year has been no exception. They’ve pulled in $13 billion in the last 12 months, profiting at a margin of 38%. Their earnings growth is up over 90% in the last year, but, as I’m about to show you, this is just the beginning…

“My stock pick is run by some of the most competent executives in the world. A group of 870 investment professionals at Institutional Investor recently voted the CEO of my stock pick as #1 in the world, chosen from a list of over 1,000 companies! In fact, my stock pick swept the voting, winning 8 of the 10 categories.”

Why now? In part, Mostrous says that it’s largely because capacity was cut during the recession, but demand didn’t really drop that far — especially for hot products like Apple’s — so this manufacturer had some huge premium-priced rush orders:

“When it became clear that demand for processor-powered devices wasn’t declining—it was, in fact, increasing!—then device companies scrambled to submit rush orders for more processors.

“My stock pick has been working day and night for the last year to fulfill some of the largest rush orders in history, at premium prices. They fulfilled six major rush orders this year alone.”

And it’s not just Apple, they’re a Taiwanese company and they get a lot of business from their neighbors in mainland China:

“My stock pick has become the go-to manufacturing house for the most impressive Chinese contracts.

“Here’s a recent example: One of the largest communications companies in mainland China (think 56% market share) recently completed the design of a special 40-nm chip that only consumes two-thirds of the power of the previous design. My stock pick was chosen to manufacture this ground-breaking technology because they are uniquely positioned to handle the delicate manufacturing process and stream of contracts from China.”

And the catalyst of that new processor?

“The executives of Apple have spent the last few weeks traveling to Taiwan to negotiate with my stock pick. The result is a new contract order for the hotly anticipated A6 processor, which will replace the currently used A5 processor th