A different version of this article was originally published on September 25, 2019. The ad in question is still running, this time with a new “key date” of February 24 (it was December 10) and a different price ($7 from $5, to match the move up in the stock), but the main focus is the same… what follows has been updated, and the original reader comments from September are still attached at the bottom.
Today we’re looking at an ad from David Fessler, who’s pitching his Strategic Trends Investor ($49, renews at $79) with a spiel about a “major December 10 February 24 event” that will send a $5 $7 tech stock soaring… and, of course, (eventually) make you 24X your money. What’s not to like, right?
Have no fear, we’ll dig in and see if we can ID what’s real about this story and give you a start on your research, then you can think for yourself and decide if you see 2,400% gains around the corner. It all hinges, per the ad, on a “strange device” that they keep showing images of — a white cylinder that you apparently set down in your home, and which is going to become a “linchpin” behind the next great technological shift.
Here’s a taste:
“Take a look at this strange device.
“It can fit in the palm of your hand… weighs less than a can of soup… and uses less energy than a night light.
“But this little device is the linchpin of a potential $12.4 trillion revolution that will reshape America forever.
“Experts call the technology behind this revolution ‘the holy grail’… ‘the lifeblood of the new economy’… and ‘the mother of invention’… with ‘an impact similar to the introduction of electricity or the automobile.'”
So that’s obviously all in reference to 5G, the incoming wireless standard that is expected to be 100X faster than 4G/LTE, with low latency and the ability to connect all machines in the world together in real time. (As long as there are no walls in between them.)
More from the ad:
“… small companies that own the linchpins behind major technological shifts ALWAYS go gangbusters.”
Well, sure, in retrospect. Hard to ID those “linchpin” stocks in advance, though. Fessler uses examples like Skyworks, with its RF chips in the iPhone, Akamai and its position as an early content delivery network powering increases in traffic from video and social media, and Cree’s silicon carbide wafer for chips as the “linchpin” of the consumer electronics market. And those are all stocks that went up dramatically, though we should always be mindful of survivor bias — plenty of other chipmakers and content delivery networks did not generate fantastic returns for shareholders during those same time periods.
And, of course, the big returns for those stocks that he cites were over 10-15 years or more, and no newsletter wants to promise you a 20-year return… that’s not going to be enough to get you to turn over your credit card number…
“All of these companies needed DECADES to develop these fortune-making returns.
“But things move much faster these days.
“The Next Tech Giant is on track to hand investors substantial gains in a much smaller time frame.”
So who is it, you ask? Let’s get into the clues:
“I call this company ‘the Next Tech Giant’….
“The CEO is a 35-year veteran of the tech industry.
“Before he joined the Next Great Tech Giant, he helped turn another small company into a global powerhouse with $27 billion in sales.
“That’s bigger than Advanced Micro Devices (AMD), Motorola and Activision… combined.
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just click here...“As the Next Tech Giant rolls out its new breakthrough 5G device, it’s already signed AT&T, Verizon, Sprint and T-Mobile to its partner list.”
And some more about its customers and partners:
“The CEO has also created partnerships with big industry leaders like American Water Works, GE, Chevron, Cisco, IBM, Shell, Coca-Cola, Uber, Amazon, Barclays and Wells Fargo.
“It even counts the U.S. Army and the Department of Homeland Security as customers.”
What else?
“… this single device renders most current internet appliances obsolete….
“Our networks are so overloaded with users, we are running out of bandwidth to support them….
“The one device I’ve been telling you about will help solve the problem completely.
“The moment you install this device in your home…
“You can throw away your worthless router…
“And connect to any available 5G network instantly for speeds unlike anything we’ve experienced before.”
In the first version of the ad he made some wild health predictions, too… some of which veer into feeling a little like “gimme your credit card” elder abuse…
“For one, you’ll NEVER have to worry about being placed in a retirement home.
“Imagine taking a bad fall and fracturing your hip.
“It happens all the time. Falls kill 9,500 seniors a year.
“But imagine this: In a 5G-connected world, smart sensors built into the walls could immediately notify your healthcare provider – and paramedics would pull up to your house in minutes.
“What’s more, you’ll be able to access the services of the world’s top medical professionals… even if they’re thousands of miles away!
“5G-powered telemedicine will enable surgeons to operate on patients in different time zones.”
Thankfully, that segment isn’t in the ad anymore. Though yes, those kinds of services could be part of the “maybe this will all be possible” hope for 5G, particularly if you want to be surveilled in your home, but it’s going to take a long time… and really, there isn’t much that 5G could do to alert the authorities if you fall down that your Alexa or a more safety-specific device using your WiFI or boring old 4G can’t do right now if you want.
So… more hints?
“… the first 5G network is already live in New York City.
“But without devices like the one I showed you at the beginning of this presentation, none of it would be possible.
“It’s what I call a ‘linchpin’ technology.
“In short, none of the 5G systems will work without devices like these.
“
That’s an exaggeration, but partly true… but note that he didn’t say “this product,” or even “this company” … he said “devices like this.” Plenty of hopes and dreams have been dashed by believers in investment teaser ads who bought the big picture promise, in this case that 5G will be huge, and then skipped over a bunch of steps (with the help of some ad copywriters) to believe that the hugeness will naturally benefit just “one little company.”
More from Fessler:
“Incredibly, the company that manufactures these devices trades for just $7 a share.
“But that is poised to change very soon.
“It could hand you a retirement fortune, starting as early as February 24.
Other hints and inducements?
“Bill Gates has staked $627 million in this wireless revolution.
“Jeff Bezos has invested $1.7 billion in companies that will benefit from 5G.
“And Warren Buffett has allocated an extraordinary $47.4 billion to a popular 5G play.
“Like me, these men built their fortunes on their ability to predict – and profit from – paradigm-shifting trends.
“I have no doubt that they sense the profits in the air – they KNOW that 5G will hand them enough money to last for CENTURIES…
“And they KNOW that if they fail to lock in a portion of the profits… they’ll regret it for the rest of their lives.
“It’s the same concern that faces you today.
“Do you take a chance on the $7 stock behind the device that will help power the 5G revolution?”
There’s some strong “fear of missing out” pitchwork, yeah? In case you’re curious, that $47.4 billion bet from Warren Buffett is, of course, Berkshire Hathaway’s massive investment in Apple shares… and of course, Jeff Bezos and Bill Gates are betting on wireless. Microsoft and Amazon depend on it, and it’s obviously still a huge growth area, 5G or no 5G. That doesn’t mean these three titans of industry have anything to do with the company being teased, that’s just some name-dropping to make you daydream about your own future billions.
What else?
“Vanguard, BlackRock, J.P. Morgan, Goldman Sachs, Citigroup and others have all taken stakes valued at $180 million.
“Company insiders are loading up on shares as well.
“Its CFO recently purchased thousands of shares… making his position worth nearly $200,000.
“The CEO followed suit – but went bigger. His position in the company is now more than $775,000.
“And a fellow on the board of directors trumps them all –making trades that bring his holdings to 6,401,995 shares – worth approximately $31 million.
“In the past year, insiders have accumulated shares now valued at more than $55 million in the company.”
And…
“The Next Tech Giant is already seeing a big uptick in business as a result of the president’s punishment of China-based 5G companies.
“In a recently filed financial document, its CEO wrote that “that these restrictions caused an acceleration of global providers to direct business from such companies… and to [the Next Tech Giant.]”
And one final burst of hype for you:
“… the shift to 5G is coming hard and fast.
“AT&T has launched 5G Evolution, its 5G precursor, in dozens of markets…
“Verizon just flipped the switch on its 5G network in New York…
“Sprint’s 5G network is LIVE in New York and Los Angeles…
“And T-Mobile has implemented its 5G backbone in more than 1,000 cities.
The time to invest is NOW.“And the stock to buy is not the telecom giant that’s been around since 1885… the chipmaker getting hammered by the trade war… or the patent holder entangled in multibillion-dollar lawsuits.
“The stock to buy is the $7 one set to reap the lion’s share of profits from 5G’s liftoff phase.”
So who is it? This is, once again, Inseego (INSG). There are a few companies who are trying to build market share in this first phase of 5G rollout in the US, which includes “fixed wireless” broadband — meaning not 5G service for mobile phones (though there are pockets of that, and it will eventually be much larger), but 5G broadband to the home that does not use cable or fiber connections.
That’s easier to build, because the technicians can visit your home and place the 5G antenna/router in a place where it gets the best signal, since 5G signals are far less robust than 4G and won’t penetrate walls or other obstacles easily, and they don’t have to worry about the fact that the challenges of genuinely mobile 5G service (wave forming, access through buildings, etc.) are still the subject of experiment. Step one is fixed wireless, and that’s Inseego’s business.
Why Inseego as the match? Well, the CEO details are a precise match — Dan Mondor is indeed a 35-year veteran of the tech industry, and he was working at Nortel Networks when that company became a $10 billion market share leader, per his company bio.
And they do make some routers that look much like the white cylinders teased by Fessler… though they have a variety of other products, and that one isn’t necessarily magical by itself. And that quote from the CEO about “restrictions” on China suppliers did indeed come from Dan Mordor, you can find it in their last annual report from about a year ago if you’re curious. The full text of that quote is:
“During 2018, the U.S. and other governments imposed import restrictions on products made by certain mainland China-based companies. These restrictions caused an acceleration of global service providers to direct business from such companies to Inseego. We are actively designing devices for use within such providers’ networks.”
They’ve also been moving some of their manufacturing to non-China factories, though they do still use contract manufacturers and presumably that just means they’ve been moving assembly to Taiwan or Vietnam or something.
And remember all those “insider trades” notes? I’ll refresh your memory…
“And a fellow on the board of directors trumps them all –making trades that bring his holdings to 6,401,995 shares – worth approximately $31 million.”
That’s Brian Miller, who heads up North Sound Partners and went onto the Inseego board in 2017, when his fund invested heavily into Inseego’s turnaround (at a steep discount, I might add). He does still hold those 6.4 million shares as of the latest filing, but that’s after selling 3.9 million shares at $4.80 back in July (a nice profit in a year, he invested at $1.63 in 2018 and also got warrants, with a strike price of $2.52, which dramatically upped his exposure). So yes, he did make trades that bring his holdings to the current level… but the most recent trades were “sells.”
The other ones? Insider buying is always a positive signal, so it’s worth checking the details…
“Its CFO recently purchased thousands of shares… making his position worth nearly $200,000.
“The CEO followed suit – but went bigger. His position in the company is now more than $775,000….
“In the past year, insiders have accumulated shares now valued at more than $55 million in the company.”
Not really… Stephen Smith is the CFO, and he hasn’t ever bought shares on the open market — his last large transaction was a grant of 19,160 shares in June, which was reduced by an accompanying sale to cover the payroll tax associated with that stock grant. He has also has bought a few shares from time to time, most recently in November, but he bought them at a discount as part of the employee stock purchase program.
Smith currently holds 24,823 shares, which would be worth about $200,000 at the moment.
CEO Dan Mondor, on the job for a year and a half or so as part of the Inseego turnaround attempt, did for a second have about $775,000 worth of shares thanks to a stock award of 54,000 or so shares in July that increased his stake by about 50%, but he didn’t buy them… and his share count, like Smith’s, was reduced by selling some of those shares to cover the tax liability of that stock award, so he actually now holds 140,867 shares, worth a little more than $1.1 million at the moment. He’s gotten more than two million stock options as part of his compensation over the past couple years on top of his $942K pay package, so his holding is meaningful but not a big “bet” that he chose to make — it’s mostly just part of his compensation.
And yes, insiders have “accumulated” shares over the past year that are now valued at over well $55 million… though most of those were bought very cheap in that rescue financing that Miller participated in during the summer of 2018 or were granted to board members and executives (we’re stretching “the past year” a bit, but teasers rarely include perfectly timely research)… nobody affiliated with the company seems to have actually bought shares at market prices at any point in the past year, or even several years, and insiders have been net sellers.
That’s true of many companies, of course, and it doesn’t mean they’re doomed… but it does mean that there is no “positive signal” from insider buying, regardless of what Fessler would like you to think. Insiders do own some shares, and therefore have some “skin in the game,” but none of the executives are buying shares beyond what they’ve been given as compensation, and they are not at all reluctant to take profits along the way.
Now, the absence of insider buying is not a strong negative… nor is insider selling. That has never been as strong a signal on the negative side as “real” insider buying is on the positive side — probably because insiders sell for lots of reasons (diversification, buying boats, putting kids through college, just love spending money), but they really only buy for one reason (they think the stock is going to to up).
(That’s not even true that insiders “buy for only one reason” anymore, actually, in this era of free and open access to information they also buy because they want people to notice that they’re buying, so that’s why you sometimes see token CEO purchases of stock of just a few shares here and there, they seem to be trying to get investors to see their “buy” signal without committing a lot of capital… but I won’t spend too much time down that rabbit hole.)
Does the Inseego router weigh less than a can of soup? Fit in the palm of your hand? I guess you could probably hold it in your palm, if you’re not a child, but the big white cylindrical one that they show images of weighs a bit over two pounds, so it would have to be a big can of soup. They do also have smaller 5G “MiFi” hotspots that are fairly small, similar in size to the 4G hotspots we’ve all seen or used over the past decade, though they’re still new products that are just rolling out in partnership with the big telecom companies.
And will it revolutionize 5G and rise 24X in value “soon?” For the first, I’d say no — there are other 5G routers available, and as the market grows there will be far more competition. Maybe they’ll win more than their competitors, maybe not, but selling this kind of equipment is not generally a high margin business so they’ll need remarkable volume to have huge profit surges. That’s possible, but far from guaranteed.
Inseego has been a tempting teaser target for the newsletter world, probably partly because it’s a recent “turnaround” story and is a small company, with a price right at that $5-10 sweet spot that investors seem to love, and it isn’t a brand name so it feels like a cool new idea… and partly because of real investment potential. It was teased as the $5 “next Cisco” by Jon Markman in June, and twice by Ian King, once as a play on “Spectrum” in July and, earlier, as a play on “Fluorescent Sand” starting back in May. The shares dropped during the China panic in August, probably partly because of some insider selling, but enthusiasm for all things 5G has picked up a bit and the shares are now at new multi-year highs, right around $8 a share.
My guess is that the likely upside potential is far less than “24X,” but that’s true of every stock… and occasionally a huge winner emerges. That depends in large part on whether this is a great company that can build a dominant position, which I’d say is a low-probability gamble at this point (that’s why it trades at $8, which is just 2-3X sales, if people thought it was a higher probability it would, naturally, be more expensive), and on what you mean by “soon.”
Analysts do have some hope for Inseego because of their 5G “MiFi” router and hotspot business, probably largely because of their sales pipeline through Verizon as that company’s fixed broadband service rolls out to more cities, but the expectation is still quite tepid compared to David Fessler’s forecasts — analysts see revenue growing about 20% next year, leading them to profitability (at $8, the stock trades at about 170X 2020 earnings expectations… but a more reasonable 30X 2021 earnings forecasts), with another 20%+ revenue burst after that (though there are only a few analysts making forecasts for this small cap company, and those earnings expectations have moved out by about a year since we first covered the stock last summer, so take that with a huge grain of salt).
If those forecasts turn out to be right, then there’s reason to think that $5 is a reasonable price to pay for the potential that Inseego’s 5G router business could have some strong growth for a couple years if they can grab a decent market share in an emerging business, like their predecessor Novatel Wireless did with 3G and 4G “hot spot” pucks using their MiFi brand 10-15 years ago. But I’d hesitate to assume any big picture 5G opportunity for Inseego beyond that point, there’s so much competition in 5G gear that will emerge, no one is sure what will be popular or successful, and I’d just be guessing at this point about who might “win.” Which makes the stock now, at $8, a lot more worrisome than it was last summer… particularly because the big earnings growth expected for 2020 at that time has now been pushed out to 2021.
There are, of course, other companies that make this stuff — and it’s not just Huawei or other verboten Chinese suppliers (though most of these companies use contract electronics manufacturers like Foxconn, which does a lot of its assembling in China). The most direct competitor right now is probably the larger Netgear (NTGR), whose Nighthawk routers and hotspots are similar to Inseego’s MiFi products (so far Netgear has partnered up most closely with AT&T, Inseego with Verizon) — Netgear is already profitable and has a broader line of business, but also had a huge drop in revenue in 2019 and is expected to grow revenue at less than 1% a year over the next couple years.
And does that February 24 date mean anything? Fessler says that’s when he expects the latest wave of FCC spectrum auctions to finish up, with announcements about who has won… and he thinks Inseego’s partners will be key winners, which could be a critical development for the stock. I don’t think spectrum is what’s holding back fixed-wireless expansion or router sales for Verizon, but I suppose it’s possible that this could have some impact… there’s certainly no reason for it to have an immediate or abrupt impact, so I imagine you’ve got time to think it over.
You could probably do worse, Inseego is a real company with a growing business, and I thought it was a reasonable speculation six months ago at five bucks… but it doesn’t look like it’s exactly poised for miraculous breakthroughs.
I expect the downside risk for INSG is probably limited to 60% or so at this point, since they do have a nearly guaranteed level of business coming right now from the early Verizon rollouts, even if that’s going slower than they initially expected, but their turnaround is still fairly new, management has been on board for only a year or so, and I personally don’t see a lot of potential for the stock to get much above $10-12 in the next couple years, unless fixed 5G broadband becomes a lot more popular than I’m guessing in the next year and the demand for their routers is dramatic and surprising. Which is definitely not impossible, I’m just skeptical.
That’s just what I see in the tea leaves, though — when it comes to your money, it’s your thinking that counts… so please do share that with us. See great things for Inseego? Other favorites for exposure to the 5G rollout? Do let us know with a comment below, and thanks for reading!
Disclosure: Among the stocks mentioned above I have equity and/or call option positions in Apple, Alphabet, Amazon, and Berkshire Hathaway. I will not trade in any covered stock for at least three days, per Stock Gumshoe’s trading rules.
How do I invest?
It’s just a stock — if you wish to buy it, you need a brokerage account and then your broker can give you directions about how to trade individual stocks on their platform. If this is all new to you, spend some time reading up on the process and on stock valuation and trading before you risk your money.
Or just buy 10 shares of INSG on Robinhood for FREE (no trade cost) and see what happens . I’ve made $1.02 already! LOL
i bought a couple hundred shares of INSG at $4.50 /share in mid November… and just now realized that I’ve doubled my money at $9.00/share today! Love it! Thank you for your advise/input on this. I may just want to “Take the money and run”!
same here but bought about a dollar higher than you.
sell 1/2 keep the rest
Dr. Thinko, thanks following up on not worrying about being “in a nursing home” because this stock is/was such a great deal!
Another plan that would never be a retiree’s relief if it goes on is an investment in a company that has been scraping along for as far back as Yahoo’s easy to access history shows! Guessing only; selling consistently at about a stock price of .0001 cents! It claimed it had hit a snag created by difficulty because of company self-described allegations of difficulties a stock purchaser had, that they characterized (by the company) as a circumstance of alleged “insider trading “Diagnose as they choose! The dissolved fuel co “Alumifuel Power Corp,” the “TDAm News” item was listed as NV 2000 1184753, a sort of co licensing number, or dissolution confirmation number?
This” Thinko Rooter” thought of seriously looking at this as a stock product as if only temporarily stressed because of larger negative circumstances framing their stalled “good progress!”
A re-check a week or so later on a convenient service “News” (stock ticker word searched articles on TDAm) items dated separately on 9/10/19 and 9/19/19 embrace all these “researched details”) and those referenced article dates provide this writer’s sources!
But it looked like though there have been a never -ending conveyor belt of stall points. Yet one could extremely cheaply buy a million shares, but this writer could just become another purchaser tripped up by stumbling in a gopher hole…so not worth even a well priced trading fee!
Then innocent but insulted by one’s own credulity wondered if anyone official is watching this chronic picture of repeatedly filling the jet airplane’s tank with expensive fuel and all the passengers never take off ! Instead cajoled by big other news flashes of the company doing this or electing this or that lead person; so stalled into patience! But it feels like a strategy! Just accept a reassuring ground tour, -buckled in to seriously pay attention- driving the plane around the landing field! And for the really disgusted ones, just enough deplaning opportunities !
The company’s registration of some sort is the US State of Wyoming, of which this midget investor took an I-Phone-Screen Shot of !
The name change is pending they say though it looks like it did go through a phase with a dual name already? It was Dinatrum, now “AFPW”!
They own a patented process #89747658000 for producing (in an on-the-go-portable-seeming manner) hydrogen gas for fuel energy using aluminum and a reagent-other “special spices!”
REIT territory? Maybe a ground-floor opportunity… ✔️
They also announced they are purchasing, using millions of dollars [cash reserves held by whom?] (by mere recollection, $3.5M) “some valuable real estate” ( in Mexico), original home country of the CEO! Same source mentions, also investing in “Alchemist-(“AMS”) a vaguely recognized name of a Mj. Company by this writer, they also dubbed it as a California Mj. tech company!
Looks odd as its Enterprise Value is much higher at $6.5 M than the Market Cap of $222.8K, yet a persistent almost non-existent stock value/price. This story here takes alchemy ‘s work to build in an investor magical trust to get actually invested! It seems like a dog-and -pony-show stalling process…often called a confidence operation to get one to buy while schooled (“conned”) into suspending judgment to deny reason and accept the story as justifying the long accident-prone train of events; yet still plunk down funding through a stock purchase!?
Then tantalized this writer looked to an, as yet un-researched source, unknown if accurate, or if respectable, the “walletinvestor , who called it an “awesome” (by recall) one year investment! What are their algorithms like?
Anecdotally this stock here discussed, company head, was recognized in one of these sources as interested in Astronomy since he taught it while still a high schooler in his own country!
Not to take away a person’s dignity until informed otherwise…
His reference foot notes at the end of the news article call on the potential investing value recoverability of his patented product, by referenced honor to the manner by which our Sun shines!
So a real lover of science, but seems he may be making a huge leap from creating Hydrogen with aluminum (possibly in this era-recycled pop/cans) and “special spices” through fusion! So that Sun’s emery output as a parallel justification fails to note any earthly invention lacks the huge mass of the Sun that keeps the sun shine in uninterrupted process for billions of years. Pretty complex since hydrogen becomes helium that causes a nuclear-like bomb. but only works so well because of that huge mass of the sun, surely bigger and stronger than a reinforced cast steel, barbecue grill compressed gas container! [Amateur’s comments only!]
So though $20., plus a purchase commission, could get quite a few shares, it sounds either extremely valuable or “gopher hole joke” sketchy!
Very hard to read it? But looks iffy! Only thing I’d say is keep the wallet shut thus far.
Any insights?
Marion.
Thanks again for your insight! I just saw that add yesterday and have been waiting for your input. Nice write up.
When I saw $5 stock and big player in 5G I immediately thought Nokia. Funny how Fessler comments about about them without mentioning a name, “And the stock to buy is not the telecom giant that’s been around since 1885”.
It’s great to see Nokia come back in the space they’ve always specialized in and could be a huge player with 5G technology, especially after the Chinese Huawei lost it’s key 5G contract in Japan to Nokia.
I wonder if Nokia will ever make indestructible
phones again lol.
%G went on trial today in DC Circuit Court of Appeals. On April 15th, 2019, the IRREGULATORS filed to appeal an FCC decision and expose one of the largest accounting scandals in American history. 19 Years ago the FCC, with the help of AT&T, Verizon and CenturyLink, and with a single stroke was able to manipulate the federal accounting rules to always make the wired utility networks appear unprofitable, and have the state utility customers fund all of the companies’ other services, from the fiber optics for FiOS, or U-verse, to the Wireless to Business Data Services. and in 2018, the FCC decided to continue these rules for 6 more years.
Read more about the fraud at http://irregulators.org
I’m always looking at Nokia to make a comeback, Same as RAD, I held that for years making some money but now it’s in the 20’s. Luckily I caught INSG early and a lot of people have been talking about it, so hopefully it will take off.
I searched up Dec 10, 2019 as well and could not find anything… would be great if it had some meaning, but nothing comes up in search.
Thank you for the honest appraisal of that little $5 stock touted by all the “buy my plan” salesmen.
I just want information honestly and frankly to help make up my own mind after researching… Thanks
I am looking at insg for long time and it’s not going anywhere like nok or eric,so please don’t waste to much time, no return yet.
There is also Marvell or MRVL
Raspberries LOL
raspberries right now who knows
The stock market is A CRAP SHOOT. It is not a Fixed Commodity like Real Estate. Thats where you make REAL MONEY. Just passed 2m mark.
Jerry, Could you be my mentor? …lol
Re real estate: Don’t kid yourself, property taxes, insurance, depreciation, condemnation, maintenance and upkeep, no ready market or market makers, local code enforcement. Good luck. with your “fixed commodities.”
Lever, Re Real Estate: I hired a property manager company that takes care of all the headaches of managing RE property. I tried doing it myself for a time… and NEVER AGAIN!
It all depends on timing (when you buy). Perhaps right now likely not the best time to buy investment properties. I bought 2 houses in Las Vegas in 2012 for a total of $215k. They are currently valued at $530k and generate $3k per month in rent. I have no plans to ever sell the properties although things could change (ie. tax code, property taxes, rental market, etc). Real Estate allows you to leverage money and build wealth but nothing is guaranteed.
Yeah, then get a tenant who moved in with no intention to pay rent, possibly damage the property, and fight in court for 6 months to get a judgment that will be ignored. Rotsa Ruck!
Absolutely love Real Estate…especially money- making Apartment buildings where the checks come in monthly. But… nothing like a long run of profits in the stock market either! I have a stock broker that handles most of my Top Gun Stocks (Microsoft, Amazon, Google, Boeing, Alibaba, FaceBook, Apple, etc) I’m starting to get frightened about a BIG CORRECTION that might come so I just put some type of “Stock Gap” at 10% … so I don’t lose more than 10% in a possible free-tall. Is there a better option for someone like me that gets nervous easily?
Why drop 10 percent of profits. Common to cost average into the market. Suggest to cost average out and sell some position at today’s prices Put sell order slightly above current market. Afraid low interest rates will prolong this run, when the correction comes will be dramatic.
Given the large stock market drops of spring 2020, consider “hedges” to control losses. AGG bond ETF is one. Share price barely moves $1 up or down per day. Small dividend like most bonds. But very stable. Covers total bond market in one ETF. Then gold ETFs and stocks. Barrick Gold , and GOAU give some dividends and growth. But can still lose some value as well, depending on fluctuations in gold market prices. Platinum , palladium, and silver are strictly hedges. Very little price rises for long periods. Not much in gains. Then, higher than normal cash percentage in your portfolio to withstand large stock market drops in value. Perhaps 10% to 12% cash given recent spring 2020 market drops of about 30%. This is of interest for small and beginning investors not “big enough” for options trading. Which usually require 100 shares at a time minimum. Another thing to consider is buying “fractional shares” of really expensive stocks like AMAZON. But 1/4 to 1/2 share at a time and “build up” to a full share. Only a few companies offer this at present. Often restricted to cellphone, no home computer trading. http://www.FidelityInvestments.com offers access at a reasonable $10 minimum stock trade for fractional shares. Other online brokers can charge more. Smaller and beginning investors need stability in portfolio value given uncertainties from world upheavals like corona virus.
Thank you very much for this inside information. I’m new on the US stock market and try to learn how things are structured, who’s reliable and where I have to go to find interesting investment opportunities. Your site is a very good help for that. Thanks for learning me.
I just received this teaser ad for the $5 tech stock. I immediately went to the $tock Gumshoe. This article is great work on Inseego. It turns out that I already own 1000 shares of the stock. I’ve been reading about it and because of the great year I’m having, and it’s low price, I decided to take a shot. It’s down about a buck from where I bought. The $5 Strike, 2022 LEAPS with a .68 Delta are selling for about $1.80, if I decide to get out of the stock to use the money elsewhere I’ll buy some LEAPS to stay in the game.
Travis, you really are the best! I joined your site a few weeks ago as a free member to check it out. Because of your great work and the help it’s giving me with my site, Main Street beats Wall Street, I decided to become an Irregular. With the work you do I had to support you for such a low fee. I highly recommend this subscription for any stock market lover. And I will recommend you on my site also. Thank you!
Thanks for the analysis and company disclosure!
The December 10 date probably corresponds to the 5G bandwidth auction on Dec 11, 2019. Using Dec 10 adds to the mystery since you won’t find anything when you google Dec 10.
I think you’re right about the December 10th date. This guy says the date is December 10th https://www.wyattresearch.com/article/5g-spectrum-government-auction-december-10
I don’t know if he is pushing Inseego, but he could be . . . “One tiny $5 stock is launching a groundbreaking device – and shares could surge before Dec. 10.”
This is from an email from Fessler referencing the 5G spectrum auction on December 10:
“Mark your calendars now.
5G will explode on December 10.
On that day, according to our friends at the Oxford Club, the largest 5G spectrum auction in American history is expected to take place.
$20.4 billion will start GUSHING into 5G networks… with many, many more billions to follow.
The economic impact of 5G cannot be overstated.
The Washington Post calls 5G “the mother of invention.”
And The Wall Street Journal says, “5G will change so much more than your phone.”
5G will completely transform…
The $1.8 trillion energy industry
The $5 trillion agriculture industry
The $7 trillion healthcare industry
The $22 trillion retail industry
The $35 trillion manufacturing industry.
That’s $70 trillion altogether!
And one company holds the cornerstone technology that will help make all of this possible.
Without this key tech, 5G won’t have a FRACTION of its expected impact.
Get the details now…
Be well,
David Fessler
Contributing Editor to Strategic Trends Investor
P.S. December 10 is the big day. This 5G spectrum auction is a watershed event. If you don’t get a piece of the action surrounding 5G now, you could miss out on some MASSIVE profit-taking. Get the details on the No. 1 5G stock here.”
I made over 30% in one day with Inseego 12/20 options. Thanks Travis for confirming my research!
What is “Inseego 12/20 options.”? That is NOT a standard description of options trading from the people I read.
12/20 is the expiration date for the Dec monthlies
a bit late to the party … i just this morning got a “5g play” from Oxford Club via Wealth Insider Alert teasing the same $5 stock (Inseego). as a relative newbie to the investing scene, I have completely oversubscribed to the newsletter crowd – but still found myself trying to guess what they were flogging in teasers usually aimed at upselling me some further product or access to retired market gurus now sunning themselves in (wher else?) Palm Beach. that pastime, naturally enough, led me to to Stock Gumshoe!
anyways, the teased make or break Dec 10 “deadline” has now come and gone – so content recycled for my supposed benefit. because investing in Inseego is going to change my life, right? here’s what I did, as I do now anytime one of the day’s dozens of teased “miracles” hits my inbox: what does Stock Gumshoe say (most of you seem to be veteran fans – so yay, Travis!) I also crosscheck analysis on Motley Fool newspages because – even though they also have the “tease disease” when it comes to self-promotion – I find their regular public free website to be an excellent site for sober and often forward-looking intel on stocks. plus, their portfolios are really pretty awesome – would that i had a lot more $ to invest … and they don’t take themselves so effin seriously like Jim Blowhard nee Rickard and muddle their analysis with politics … anyways I just wanted to share this with the Gumshoe community. I enjoy – and profit from- reading Travis’ insights and sleuthing , as well as commentary from the crowd. I still have much to learn from all of you so thanks! have a lovely day! jennifer
Funny I did sign up with Oxford as well thru WIA. I’m disliking all the emails I get…watch this…watch that…sign up with this…and that with no clue of the stock. But it has made me query more and researched stocks often on my own. I solved my curiosity and found it was Inseego. We just need to educate ourselves to be informed of the times. Good Luck making some cash in this market.
Inseego seems like a good bet for reasonable returns. I need to look into the leadership team though? Has anyone done that yet?
Sounds like a stock that could catch fire. And apparently it did last week at the opening of CES in Las Vegas, where it gained from early 7’s to $8.91, then retreated later in the week.
I think Verizon does have the potential to sell a lot of these fixed- and wireless- routers. Verizon has about 30 areas covered now, and 2020 will be a year of buildout for all the carriers. Verizon has 4 models of Inseeco products on MyVerizon. US Cellular is also offering at least one model.
Also, the company has 2 other branches that serve other markets, and is selling for about 2x price/sales now, even if they arent profitable yet, I think they are priced right now for the long-term. (I heard that Beyond Meat is selling for 60x sales, and that means that they would have to sell product for 60 years (with no expenses !) to justify the market cap! Templeton used to sell any stock that hit 20x price/sales.) Many newsletters are touting INSG (Inseeco). I am a buyer, also of longer-term low delta call options.
Personally, I am ready to buy and try out a US Cellular or Verizon mobile router as soon as they build out on 3 cell towers that are bring upgraded locally by March 31. I expect a mobile router to be dramatically cheaper then our current fiber optic service of 100Mbs/sec up/and down which costs $75/month, and to have faster speed and will be mobile. How fast? Dunno yet!
There are valid health concerns about cellular technology in general and esp. 5G, and I am concerned about the health of 5G. It is being banned by governments in Europe and everyone should know about the risks. In our corporatocracy, the FCC has chosen to not investigate the electromagnetic effects of 5G so that the IoT can proceed quickly, health be damned!
Apple is coming out with their first 5G-enabled cell phone in November, 2020.
Thanks to Travis for highlighting and evaluating this company. You rock!
Nice writeup good stuff… read that article and another one earlier. Did research and found INSG product and bought at $3.80…now it’s $8.21.. so doing well and hopefully VZ will use more so that not and at 100Mil phones.. profit will be good enough to move on and buy something else.. most of us only buy up to 1000 shares or so, unless we get rucky… Keep the write-ups did buy some stuff from mampilly/brown… cheap stuff … still have to research and sift thru their BS… so hard work reading & research..thxs.
Thanks, Travis, my top pick to benefit from 5G is GLW. I think it will at a minimum double over the next 2 years & downside is minimal