Stansberry’s Teased Pick for “New Arms Race” to “Save the Internet”

What's the Cybersecurity play touted by Stansberry Innovations Report?

By Travis Johnson, Stock Gumshoe, February 5, 2019

The latest ad pitch from the Stansberry folks, a marketing letter/presentation that’s urging you to subscribe to Stansberry Innovations Report ($49/yr at the moment), tells us that…

“This Tiny Firm Could Tip the Scales in… The Battle to Save the Internet”

So you can leave your subtlety by the back door today.

What is this cybersecurity pioneer? Let’s sift through the ad, which is from editor Christian Olsen, and see what we can find.

Here’s the scary beginning o the spiel:

“Legendary Computer Scientist Warns:

‘We Could Lose the Internet’

“Major Flaw Threatens to Take Down Dozens of Popular Websites, Including Google, Facebook, Amazon”

Which might sound good on any given day, but, of course, pretty much everything we rely on for modern living touches the internet in some way, from bank accounts to health care to transportation to the electric grid, to say nothing of just plain old “sitting on the couch watching TV.”

So what’s this flaw? Olsen doesn’t pinpoint one particular thing, but essentially it’s just that the internet has quickly become far more complicated and far more embedded in our daily lives, while security has so far failed to keep up.

And yes, there was a Donald Trump quote about “closing the internet,” which was used in some of the email versions of this ad I saw – here’s how Olsen notes it:

“Fresh off his election win, President Trump said:

‘We have to go see Bill Gates and a lot of different people that really understand what’s happening. We have to talk to them about, maybe in certain areas, closing that Internet up in some way.'”

Which is sort of true, but not really at all about cybersecurity — that quote first aired in 2015, about a year before the election, and it was in response to terrorists using the internet for communication and recruitment. He later said similar things in 2017, following a London bombing, but again it was about cutting off the ability of terrorists to use the internet for recruitment. Which I’m sure is still an issue, but not at all the same thing as countering hackers and cyberattacks.

The basic spiel of the ad is that a “new arms race” is underway for cybersecurity, and that it will lead to profits just like past arms races. Here’s a bit more from the ad:

“How high could cyber-security stocks go?

“Well, this is America’s ‘New War.’

“Years ago, our battles were mainly fought with ships, planes, and missiles.

“And most people don’t know this, but the companies that did all the work to prepare for these old wars have been one of the most reliable… most profitable investments in the world over the past few decades.

“If you don’t believe me, take a look…

“The Dow Jones Index