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.<