I’ve seen a few variations on this ad over the past couple days, so it’s time to dig in as the questions pile up — the ad I’m looking at this afternoon is for one of the Stansberry Pacific newsletters, Brian Tycango’s Strategic Wealth Confidential.
That’s a pretty new publication, but Tycango has been a newsletter guy for at least ten years — we covered him quite a few times when he was helming other Asia-focused letters during the time of the last China mania (2007-2011 or so, you can see some of the reader feedback from that time here), before he resurfaced with Kim Iskyan and Peter Churchouse at Stansberry Pacific last year.
Kim Iskyan’s email introducing the ad is really what caught my attention — he headlined his email “Our most impressive find” and tantalized with language like this:
“One of Stansberry Pacific Research’s top analysts, Brian Tycangco, has just uncovered an extraordinary opportunity.
“A global investment trend we expect to eclipse the Bitcoin boom by a factor of 80.
“And to even surpass the Dot-Com boom which was estimated to be worth $3 trillion.
“This $26 trillion wealth event is simply too big to ignore.”
And he throws us to Tycango with the tease that the “rewards could be as high as 670%” … which ain’t half bad.
So what’s the stock?
For that we have to dig into Brian Tycango’s presentation and see what clues he drops. Let’s get started, here’s a little taste:
“How the fastest-growing area of the world can be overlooked is something I’ll never understand…
“…And then again, perhaps the numbers involved are simply too large to seem credible. After all, $26 trillion is a truly astonishing number.
“I’m not exactly sure why this story isn’t getting more coverage.
“But I do know this…
“If you get ahead of a $26 trillion investment wave, no matter what else happens, you have a great chance at making an extraordinary amount of money.”
So what is this “$26 trillion wave” he’s talking about? Infrastructure investment. Here’s a little more from Brian:
“A new investment boom, estimated to exceed $26 trillion, is rollingthrough Asia.
“It’s been called…
‘the largest infrastructure endeavor in human history.’
‘the biggest investment boom in history.’
‘the most explosive era of infrastructure expansion in human history.’Are you getting our free Daily Update
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“This market’s opportunity simply dwarfs Bitcoin or any other current investment trend. It’s even several orders of magnitude bigger than the Dot-Com boom.”
And, naturally, he’s sending out this ad because he thinks this is “precisely the right time” to take advantage.
As you probably know, much of the infrastructure being built in China and elsewhere in Asia is there to support all the mega-cities that are booming as these countries modernize and urbanize. In Tycango’s words…
“From roads to housing to public transport… not to mention water and electricity, Asian cities are in desperate need of new infrastructure.
“Because of this great influx of people, they need new roads…
“New energy grids…
“And the need is pressing.”
So how does one benefit from the trillions being spent in China, India, Vietnam and elsewhere in the region? He talks about three “extraordinary opportunities,” but most of the focus is on the first one, (he says “I feel like this recommendation will become one of the very best I ever make.”)
So let’s check the clues and ID that one for you, shall we? Here goes…
“The company I’ve found is a mid-sized civil works company in Hong Kong – deep in the nitty gritty of this global infrastructure expansion….
“Hong Kong’s legislative council (LEGCO) have approved a US$11 billion infrastructure spending budget for 2018-2019, which will cover capital works like schools, hospitals, cultural facilities, etc.
“Then, LEGCO anticipates spending to rise to $16 billion a year by 2022 – just three years from now….
“This Business Is Tiny, With a Market Cap of Just $150 Million….
“Over the last 35 years, this tiny company has established a solid reputation while working on some huge national projects.
“It built the largest second subway in Hong Kong – the two farthest exits are nearly half a mile apart…
“It built the country’s premier airport, and the world’s eighth busiest…”
And he drops a few hints about their financials as well…
“Over the past six years, its revenue has grown from US$270 million to US$762 million. That’s a 30% annual average growth rate….
“And its net profits are growing even faster – rising at a staggering rate of 163% a year on average.”
We’re told that they have no net debt, and at the end of 2017 they had $91.77 million in cash… and that they are hoping to secure a higher “tier” license that will allow them to bid on big housing projects, but that they have a “very lucrative work schedule” lined up even without that, including a few specific projects he cites:
“- 11/16/2018 – Construction of a