The latest pitch from Marc Lichtenfeld begins with a walking tour of Palm Beach, which is just cruel to those of us enduring mud season in New England, but, more importantly, it also comes with a good ol’ fake deadline of midnight tonight… so I guess I better cover this one quick! Fortunes await!
The ad is for Lichtenfeld’s Stock Sequence Trader, which I’ve never heard of before — it’s pricey ($2,400/yr, no refunds) and seems to offer a trading system based on just one “ignition sequence” for particular stocks, so I’d imagine that it uses some similar strategies (like options speculation) to Lichtenfeld’s other “high end” trading service, Lightning Trend Trader.
You’d never spend $2,400 just to find out a ‘secret’ stock, right? Especially if they won’t give you your money back if you change your mind next week or decide the newsletter isn’t your cup of tea at all? That would be crazy. So let’s figure out what the stock is, chat about it a bit, and then you can decide what to do. Maybe you’ll love Lichtenfeld’s strategy and will want to rush to subscribe, that’s your call, but don’t do it just to learn a “secret.”
Heres what got our attention right off the bat…
“Why I’m Betting $5.5 MILLION That This Company* Will HAND YOU 859% in a Year!
“WARNING: To Take Me Up on This Bet, You MUST Act Now Before a Critical April 24 Event Ignites This Stock to the Moon.”
And then more hype…
“It’s a big bet, but I’m willing to do it because this fintech company has more profit potential than any stock I’ve seen.
“To start, this company is backed by some of the most powerful people in the world.
“In fact, it was founded by a brilliant executive team known as, ‘The Richest Group of Men in Silicon Valley.'”
He says these folks are responsible for backing huge names like Facebook, LinkedIn and Tesla early on.
So what other clues do we get?
Well, we know it’s a fintech company….
“These guys also have perhaps the greatest track record ever in turning small, new companies into giant winners.
“Yet their fintech company I’ll tell you about today could potentially make ALL OF THEIR previous wins pale in comparison.”
“FinTech” is a pretty broad term, of course, you could use it for anything from bitcoin miners to newer card processing companies like Square and Stripe to new lending companies like Prosper or Lending Club or SoFi to start, but finance incorporates a huge number of companies.
So what else do we learn about this one? Clues, please!
“I calculate record-high revenues will top $19 billion in the year ahead…
“And this company has its sights on a new market worth $642 BILLION….”
OK, so it’s a pretty big company. Many service companies in finance have very tight profit margins, but still, $19 billion is a big revenue number. There are fewer than 150 companies in financial services that have revenue greater than that.
More? How about some details on that “big event” coming in a couple weeks?
“You see, the company is poised to experience a major, once-in-a-lifetime event by Wednesday, April 24, blasting it skyward.Are you getting our free Daily Update
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“Make no mistake… This singular event is THE MOST POWERFUL STOCK CATALYST there is.”
Ooo, ooo, what is it?
“This event happens ONCE in a company’s history… but when it does, look out.
“Because it can send share prices soaring like nothing else.”
He includes some charts to emphasize this, though those are clearly returns not from holding the stocks, but from betting on short-term price movements using call options. He cites Wabash National (WNC) as posting a 1,300% gain, for example, but in the time period noted the stock only doubled.
What was the catalyst? Those three names, Wabash and Aircastle (AYR) and Greenbrier (GBX) don’t narrow it down quite enough… but it’s likely to be dividend-related.
And the further examples he provides do make it very likely that what he’s mostly talking about as an “ignition event” is a company initiating a dividend — announcing that they will pay out a dividend to investors for the first time. So apparently he’s talking up an option bet on a fintech company that he thinks will announce a dividend in a couple weeks.
There may well be other kinds of “ignition events” that he’s looking for — he refers to Skechers (SKX), for example, as a stock he recommended for an “ignition event” early this year, but SKX has not announced a dividend. It could, I suppose, and maybe he was betting that they would since they’re cash rich and have been beating estimates, but his bet worked out regardless of the reason (he claimed 205% returns, which would have been achievable if you bought the right call options before the February earnings beat — the stock itself has risen about 40% on the year).
More clues about which company this is? He again references those “masters of the universe” folks who helped build the company, but begins to clarify that these were actually executives and company builders, too, not just venture capital investors.
What these 13 Silicon Valley geniuses did was join forces to attack the ever-so-slow-to-adapt… GIGANTIC… banking industry.
“Their fintech company – which I refer to as the #1 FinTech – is on a mission to revolutionize the world of money as we know it.
“Here’s why I believe this #1 FinTech could very well end up becoming the biggest HOUSEHOLD name on the planet.
“Bigger Than Amazon, Apple and Netflix… COMBINED?”
And apparently it’s already pretty well-established…
“This FinTech company is eating up market share at an unprecedented pace.
“In the latest quarter, the number of new, active customers it brought on board grew by 45 million.
“Total cash flowing through its business grew by $1.2 billion… up 378% from the year before.
“The big banks are terrified of this new #1 FinTech because it’s stealing all their business.”
“It’s got a huge war chest… with $10.5 billion in cash and ZERO debt….
“… the early business model was actually voted among the ‘top 10 worst business ideas of the year,’ according to Medium.
“Simply put, financial and venture capital firms arrogantly assumed this company would drown trying to compete with the old guard in finance….
“But they were so wrong… they couldn’t have been more wrong if they tried.”
So what does this business actually do? More from the ad:
“This #1 FinTech created a brand-new way of moving money, helping businesses reach customers, increasing security and safety of money online…
“The company created lightning-fast, secure payment solutions. Something the world had never seen.
“It saw its user base jump from zero to 100,000 users in just a one-month span of going live…”
And it has continued to evolve…
“It added instant personal financing options to its product line.
“And it’s quickly becoming the go-to source for small business lines of credit.
“In other words, this #1 FinTech is making traditional banking obsolete….
“This #1 FinTech is now processing nearly 10 BILLION transactions in a year…”
There are a few other clues, but we’ve got more than enough now. I should, though, note that later on in the ad Lichtenfeld does finally clarify that yes, the “ignition event” is the initiation of a dividend…
“I define an Ignition Event as the precise moment a company initiates a dividend for the first time.
“The second a company announces it’s about to pay a dividend for the first time… investors go crazy.
“And here’s why…
“Not only are shareholders set to receive a BONUS on their investment… and a steady stream of dividend income from their shares going forward…
“But the initial dividend announcement is a sort of kickoff for the stock’s best years.”
Will that be the case for this “#1 Fintech” stock? I have no idea, but I can tell you that the stock Lichtenfeld is teasing is PayPal Holdings (PYPL), the dean of fintech.
PayPal is obviously not a startup,