Solving Stutman’s “How to Bank 1,343% on the ‘Chip’ EVERY Electronic Device Needs” Teaser

What's being teased in ads for Technology & Opportunity?

By Travis Johnson, Stock Gumshoe, December 18, 2018

We’ve got a new pitch from Jason Stutman’s Techology & Opportunity to take a gander at, and it’s another of those “three parters” that pitches a few different stocks as a play on a theme… so I’m going to try to be economical with the verbiage and get to all of ’em before you lose interest.

Too late? Sorry, old habits die hard. The pitch is for a tiny “chip” that is in hot demand… here’s how the ad starts:

“This Tiny “Chip” Could Render ALL Your Electronic Devices OBSOLETE

“ONE Simple Move Could Make You 1,343% or More in the Next Few Months…”

So what are these little doodads? More from the ad:

“You may never see one of these ‘chips’ in person.

“BUT…

  • There are hundreds of them hidden inside your smartphone.
  • The typical gas-powered car contains thousands of them.
  • And an electric car needs ten thousand of them or more.

“In short, the more sophisticated the device is, the more of these ‘chips’ it needs to run.”

And there’s a quote from the Wall Street Journal, since copywriters love to cite real news sources to make their idea seem like it’s got a solid backing of some kind:

“This shortage will make all electronic devices harder to come by.

‘Can’t find a Playstation 4? Blame it on a part barely bigger than a speck,’ says the Wall Street Journal.”

That Wall Street Journal article ran back in June, by the way, and used the same image as Stutman’s ad (the one with a fountain pen nib pointing at a tiny MLCC).

So yes, those “chips” that he’s referring to are multilayer ceramic capacitors — in the words of that WSJ article: “The part, which costs less than a penny apiece, helps control the flow of electricity and stores power for semiconductors, a function without which virtually no electronic device could work.”

I know nothing about these little doodads, but they sound important — and apparently the manufacture of them is a little bit of a trade secret (at least when it comes to specific “recipes” for their creation), and is dominated by a relatively small number of manufacturers.

And we’re told that supply is very tight as demand climbs, causing tightness and probably raising prices a little (though I imagine most of the big buyers lock in long-term deals), and the suppliers have been investing in expanding capacity as this shortage has gradually emerged over the past year or two. That’s what I understand from that WSJ story and from reading between the lines of Stutman’s ad, at least, can’t claim that I’d ever heard of an MLCC before this morning.

So with that backdrop, let’s dig rignt in to the pitch and see which stocks Technology & Opportunity is touting — then you can think for yourself, take a little time, and make your own decision without the pressure of a hotted-up ad promising 1,343% returns.

Clues, please!

“‘Chip’ Shortage Stock No. 1: Guaranteed Profits

“This company is one of the much smaller players in this market.

“And it is aggressively ramping up its production capacity for these special ‘chips.'”

OK, what else?

“As the company’s CEO explains, ‘We’re gearing up for a strong demand picture. What we are experiencing is not a bubble, it’s a trend. We are increasing our capacity over the next two years.'”

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