There’s a bit of a tendency for some newsletter publishers to use military imagery in their letters, to try to convey an image that you’re like a Navy SEAL, sneaking up on your target to dispatch a terrorist leader with maximum prejudice (or, as the case may be, buy a stock and make some money, but real cool-like). That’s what first popped in my mind when I saw the ads for Keith Fitz-Gerald’s new newsletter called Strike Force — and it’s even got a little crosshairs logo in the “o” … I feel cooler just looking at it.
Yes, I know, insert your own joke here about a subscription service being named for a fictional band of street urchins. It’s OK, I can take it.
But anyway, this is one of those “super premium” newsletters — at least in price. We don’t know how it will do, of course, but they’re charging close to $3,000 (oh, wait, it’s On Sale! Only $695! I guess we’ll find out after a few months of performance if they’re ever going to actually charge the “retail” price for this letter.)
And Keith, in a faux interview ad for the letter, tells us that this next investment idea of his might be the stuff of which legends are made. Or as they put it:
“We asked if Mr. Lin’s new security system could soon be installed in FIFTY BILLION devices, making it the biggest technology of our lifetime, taking his company’s stock from $5 to $300. This is what we learned …”
The basic pitch is that there is such a massive move toward networked devices and mobile data, that the security challenge is massive and this tiny company that’s focused on mobile security will get rich as their technology is installed in billions of networked devices.
Here’s Fitz-Gerald’s pitch, after he describes the huge number of interconnected devices, from smart phones to refrigerators to vending machines, who will need security to protect them from hackers:
“So what happens when one company is the first to build a fortress of impenetrability around those 50 billion connected devices? And what happens if you invest in that company early on – just before all those billions of connections create billions in profits?
“This is what could happen…
“You’re set up for one of the biggest hockey-stick winners you’ll ever see!
“The company I’m telling you about today is already a global leader in mobile security.
“They’ve got more than 100 million subscribers in 100 countries, and for this achievement, they’re already a $5 stock on the NYSE.
“So what happens next? Here are the scenarios going forward:
“Worst case, in our view: They hold onto their global market share as people move from basic cellphones to smartphones. This could mean a billion subscribers in a couple years, and a $50 stock. That’s 1,000% growth based solely on people migrating from cellphones to smartphones that can tap a vending machine and get a soft drink.
“As for the best case: The company grabs the same big share of the 50 billion mobile connections we’ll be seeing. That could make them a $300 stock. And if you’re doing the math in your head, yes, that’s a 6,000% gain on the money you invest now…”
And, to further the argument:
“… the U.N. tell us there are already almost five billion cellphones out there and we know the world population just topped seven billion!
“Five billion of these, and a lot of them are vulnerable. In China alone, there are 277 million people that could be hacked. And a lot of them are being hacked! This global security outfit we’re targeting has reported that some 2.5 million subscribers were hit with malicious viruses in the first quarter of this year.
“That means that in China alone this year, 10 million people could be slammed with stolen identities, credit card loss, unknown service charges, their calls secretly recorded, their text messages stolen, their photos winding up on the Internet…