JR Butts ad says “A major Wall Street ‘slipup’ means you can buy stock in a little-known satellite company at a price as much as 20X below its real value”

Top Stock Advisor teases that this is "Like Buying a Brand-new Corvette for $1,000"... so who is it?


This article was originally published in February 21, 2020. We’re still getting questions about it, the ad is still running and appears unchanged, and what follows has been lightly updated.

This is from an email I received from J.R. Butts, pointing at a teaser ad from StreetAuthority for his entry-level Top Stock Advisor newsletter ($39 “on sale” for the first year), a service I haven’t covered before …

“If you could buy a new Corvette today for $1,000, sell it tomorrow for $50,000…

“And pocket a quick, risk-free $49,000 profit…

“Would you do it?

“If you would, you’re going to love this opportunity…

“Because a major Wall Street ‘slipup’ means you can buy stock in a little-known satellite company at a price as much as 20X below its real value.”

So no, the newsletter ad copywriters haven’t forgotten that most newsletter subscribers are retired dudes who yearn for the sports cars of their youth… and they even manage to slip in some photos of the sexy Corvettes that get the heart of those folks to skip a beat or two on a cloudy February day.

But aside from copywriters using any excuse to slide in a photo of something aspirational (Corvette, yacht, etc.), what’s the ad about? Here’s the headline once you click through:

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“Former Wall Street Insider Reveals…
‘One Obscure Footnote is Your Key to Unlocking a $201,873 Windfall’

“REVEALED: How One Small Detail Wall Street Analysts Missed Could Add Six-Figures or More to Your Retirement Account… Starting Today”

And theres even that partially obscured “secret” document with the highlighted footnote to make it all seem every so official — though it turns out that the ad is mostly about satellite communications and spectrum, and the footnote they highlight is citing an appellate court decision (94 S.W.3d 163) reconciling some competing laws in regards to a personal injury case having to do with some oilfield workers (thrilling stuff… Negligence! Indemnification!). I don’t know for sure whether there’s some rational connection, or if they just made up the footnote, but the latter seems most likely — there are “footnote” specifics in global spectrum allocations that often come up with satellite companies, since they typically have to follow through to actually launch a service by a particular deadline in order to “hold” the spectrum they’re granted instead of just banking it, but I don’t see how those contractual agreements could have anything to do with this particular citation from the Texas Court of Appeals.

The profit story here apparently begins with a prescient acquisition… more from the ad:

“In late 2019, a little-known satellite company quietly purchased an Internet tech startup at a bargain basement price.

“How’d the stock market react to the news?

“Bupkis… no one cared….

“But this time…

“They missed something.

“They completely overlooked a detail so massively important, it could add $100,937… $201,873… even as much as $504,685 to your investment account in the next 12 months.”

Butts says that this “obscure footnote” could be worth as much as $10 billion a year for the satellite company he’s teasing us with… so that’s our mission today, find out which company it is and let you make your own call about whether there’s $10 billion hiding in there somewhere. Ready?

There’s always some urgency in an ad like this — after all, you wouldn’t sign up if it wasn’t urgent, right? We want to win NOW, not in five years.

And the argument is basically that this satellite company has a “hidden” revenue stream that could be $10 billion a year, and which the market isn’t “pricing in” — but that these missed opportunities don’t get missed for long, so the market is bound to catch up… though the urgency isn’t tied to a specific date in this case:

“How soon will it take for one of those ‘rocket scientists’ to discover the massive profit opportunity I’m hand delivering to you today?

“It could happen tomorrow… the next day… or a few weeks from now.

“There’s no way to know for sure.

“That’s why taking action today is the only way to be 100% certain you can stake your claim in this hidden gem…”

And this hidden revenue stream was apparently part of the acquisition this company made late last year…

“The satellite company I’ve been following paid a measly $26 million for the tech startup it bought in 2019.

“That’s an amazing price for the assets, intellectual property, and brand name it got in the deal.

“But it’s just a small fraction of what they received for their $26 million.

“The startup they bought owned exclusive global rights to not just one frequency…
But a huge slice of satellite communication ‘channels’ in what’s called the S-Band.”

And he says the S-band spectrum “channels” they own could support as many as five billion “smart devices,” and that they can charge the manufacturers of those devices at least $2 a year to communicate over their spectrum, which is where the $10 billion number comes from.

Which leads to some more clues…

“to a small company like our satellite firm…

“That has just under $2 billion in annual revenue today…

“An overnight increase of $10 billion a year is a HUGE deal.”

Well, it’s not “just under $2 billion” anymore, they’ve been slightly above $2 billion for over a year now when it comes to annual revenue, but this is clearly hinting at Echostar (SATS), one of the many competing satellite companies that’s trying to build a global network to offer seamless connection for Internet of Things (IoT) devices.

And yes, they did make an acquisition last year that brought them some rights to S-Band spectrum, in this case through a little bit of a back door move as they acquired little Helios Wire (yes, for $26 million) and almost immediately moved to launch the first inklings of a low-earth orbit (LEO) constellation to test their S-band network. Helios had filed for worldwide mobile satellite service through its Australian subsidiary (Sirion Global), which meant that they gave EchoStar the possibility of global coverage on the S-band which would help their competitive stance, since most of their current satellite network focuses on Europe.

That doesn’t mean they’ll have a network up and running and be offering a service in the next few months, but it does mean that in order to hold the spectrum rights they have to launch at least one of the satellites and operate the network — apparently the deadline for Helios’ filing with the International Telecommunication Union (ITU) is April of 2021, so they’ll almost certainly be beating that deadline (they intend to launch by the end of this year, or at least in the first quarter next year) to keep those licenses (which were the key reason for the acquisition, of course)… but how far they go to build out the network and actually offer services beyond that, and when, is still pretty much up in the air.

There are a lot of companies aiming to offer satellite-based IoT coverage, both existing satellite networks (like Intelsat, Iridium and Inmarsat) and the many low earth orbit startups (SpaceX, OneWeb, etc. — EchoStar’s Hughes division is making ground equipment for OneWeb and is a OneWeb investor, incidentally), and I imagine there will be a lot of coordination and communication in the next few years… as well, hopefully, as some international standard-setting to make sure these various networks and devices can talk to each other.

EchoStar is probably best known for its roots in satellite TV, but is no longer in that business — they spun off Dish Network (DISH) more than a decade ago and bought Hughes Network to expand their satellite services, and finally sold the last piece of their broadcast television business (back to Dish) late last year, to focus entirely on global and broadband satellite connectivity. Founder Charlie Ergen is Chairman and the largest individual shareholder of both Dish Network and EchoStar still, and I have no idea where his focus lies but DISH is also in the midst of some major upheaval and is a far larger company (they’re the buyer of the Sprint spectrum and assets that have to be divested as part of the merger with T-Mobile, and intend to build a fourth mobile network).

EchoStar reported earnings about a month ago (transcript here), and as in February the earnings report was not monumental, no real “shock” either way. They lost money, and the numbers for this year are tough to compare because of the spinoff of assets back to sister company Dish Network (including a bunch of satellites as well as some Echostar-owned assets that were primarily used for Dish television customers, like their call center), but they still expect to eventually be able to reinvigorate growth now that they’ve gotten rid of the shrinking satellite TV business and can focus on expanding their broadband business… perhaps including this planned LEO satellite network that’s just being started now.

Does that mean they’l have $10 billion in revenue next year? No, definitely not. There isn’t a lot of analyst coverage of EchoStar, but the likelihood is that they won’t even get back to $2 billion in the next year. Whether they’re able to build a meaningful global IoT data network on the S-band and boost sales in the future remains to be seen, that’s likely what they’re trying to do, but it will take years — and even if you discount the cost and challenge of operating satellite networks (which has, to be fair, improved with the new smaller satellites and variety of private launch companies), there’s a lot of competition angling to build similar global connectivity businesses using low earth orbit satellite constellations.

I have no idea how it will shake out with EchoStar in the year to come, but it’s certainly true that investor interest in satellites has not been this hot in years — just in the past few months we’ve seen newsletter teases from Charles Mizrahi for Iridium (IRDM) and E.B. Tucker for Gilat (GILT), to say nothing of the ongoing Ray Blanco “Halo-Fi” pitches about OneWeb that then morphed into something he called “Apple-Fi” (which hinted at Aerojet Rocketdyne (AJRD), EchoStar again, Virgin Galactic (SPCE) and likely Maxar (MAXR)), or the rising chatter about a possible SpaceX spinoff or IPO of Starlink, its planned satellite broadband company, or Amazon’s latest satellite ambitions, or whatever else.

Space is pretty hot these days, and the demand for global data has certainly never been higher, so maybe building satellite constellations won’t just be a money-losing project for billionaires this time around, but I can’t say I’ve got any real conviction about how the next few years will play out.

And so I’ll leave you there, dear friends — yes, Top Stock Advisor is teasing EchoStar based on the impending launch of its first couple of nano-satellites to test their S-band network and hold their ITU license, but by “impending” they mean “sometime in the next nine months or so”… and no, they’re not going to make $10 billion in revenue from those satellites in the next year or two. Whether the possibilities of that network and their existing satellite broadband services is enough to inspire you to invest, well, you’ll have to make that call. Please do let us know what you’re thinking with a comment below… love SATS, or have other favorite satellite stocks? We’d love to hear.


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Benito FeFe
Guest
Benito FeFe

ORBC

bluegrew
Member
👍-17
bluegrew

has stock gumshoe given uo on Enlish? This is just wasting my time

bunion132
Irregular
👍250

bluegrew, I realize that you mistook stock symbol ORBC for what you thought was an acronym for some pop culture phrase. However, please be cautious about “casting stones” since you misspelled the words “up” and “English” plus seem to have a problem with sentence construction in your own brief post.

tripp3
Irregular
👍6
tripp3

idiot

bunion132
Irregular
👍250

Benito, thanks for the idea. An explanation for suggesting this company would have been nice but I didn’t find it absolutely necessary. My initial research reveals that its price performance over the past 3 mos exceeds 100% . Miscellaneous analyst ratings favor the stock very well, too. I almost wish Travis would provide a contrarian view because, on the surface, it’s hard to find what not to like about the stock.

Malcolm Jensen
Guest
Malcolm Jensen

I’m not going to follow the recommendation of anyone who suggests that a stock is available for “20 times below value.” What those words mean in English is that someone will pay you 19 times value to accept the stock. I doubt the intelligence of anyone who is that inarticulate (Exceptions allowed for those just learning the language).

JOHN WATERS
Guest
JOHN WATERS

HI I cannot add much to all of this….just bought some Gilt but found out that the CMTL takeover is a done deed, whereas holders of GILT will receive mostly cash……ugh! Looks like the Israelies don’t see a lot of worth by selling out…….I’d like to cover my bases and will buy some CMTL. Looks like I will have to sell something to get some Echostar to stay in this new 5G game. Travis, we thank you heartily for how you educate us……My little old SHOP purchase went to $530 a share…Ta! and SAND has doubled…Ta! again….wish I had more… Read More »

jeffreyl
Irregular
👍37

Travis did me right with SHOP . But it’s not $ till I sell. Fingers crossed. I’m too selfish to sell half my holdings. Boy do I need some discipline.

artemio alvarez
Guest
artemio alvarez

try
c-com satellite (cysnf)
maxar technologies (maxr)

Fngwave
Guest
Fngwave

Varian associates had a division in the eighties working on a twt involved in the iridium project. 66 satellites around the globe. Varian sold that division (twt, super power)
Do you have any updates on this?

Carbon Bigfoot
Guest
Carbon Bigfoot

On September 23, 1998, 66 satellites, launched into low orbit by the Iridium Corporation, commenced broadcasting to the first ever satellite telephone service. But telephone interviews revealed that on that day exactly, electrically sensitive people all over the world experienced stabbing pains in their chest, knife-like sensations in their head, nosebleeds, asthma attacks, and other signs of severe electrical illness. Many did not think they were going to make it. Statistics published by the Centers for Disease Control reveal that the national death rate rose 4 to 5 percent during the following two weeks. Thousands of homing pigeons lost their… Read More »

Carbon Bigfoot
Guest
Carbon Bigfoot

https://ehtrust.org/ehtlegalaction-againstfcconhealtheffectsofcellphones/ The above link depicts the action that the Environmental Health Trust that they brought against the FCC for not revising safety standards on the Telephony Utilities and Equipment Manufacturers in TWENTY FOUR ( 24 ) YEARS. This is one of many actions that have been recently filed against the “Captured FCC Agency” a revolving door of corrupt Industry Officials that DO NOT have the health and safety of the USA in mind. They do not have even one Safety Professional, or Medical Doctor reviewing specifications or policy. Another favorite charity of mine, “ The People’s Initiative” is also preparing… Read More »

bernie201
Irregular
👍4
bernie201

I wonder if they have a Satellite Harvester on the drawing boards somewhere, yet.

talbotce
Guest
talbotce

Travis I find your Teasers articles to be very informative and educational to the lay investor. The potential of the Echostar investment I feel is overblown. I will have to say that your teaser article of Feb. 18th “Dark B urst” business from Micheal Robinson prompted me to invest $5,000 in the company Enphase. I knew there was great risk in purchasing a stock the day before the company releases its Earnings. I am please to say the investment was good one . A 40% gain in 2 days.

ebe
Guest
ebe

looking for The Oxford Club “linchpin device” for 5 G but the website doesn’t allow one to search anymore?

tgnaylor
Member
👍7
tgnaylor

Dave Fesslers article of sept 2019 uses the phrase ”linchpin device for 5G” if you search for that phrase on the Oxford Club website!
Stock mentioned is ”Inseego” buy up to @20

kingdomwar
Irregular
👍65
kingdomwar

Sometimes you make the most money by NOT looking for the next big thing.

Bob
Guest
Bob

Good point. I’m looking at electric buses, that displace a thousand times more carbon than a Tesla car. In the developing world, many more people are more likely to use public transport than they are to buy Teslas or call Uber. On top of my watch list is BYD, the Chinese company that is the largest producer of e-buses, with Buffet as its largest shareholder.

Bob
Guest
Bob

a very famous writer once wrote: “the past is not dead. It’s not even past.”

Jay
Guest
Jay

Look at: https://www.greenpowerbus.com/

Exchange: TSX Venture
Stock Symbol: GPV
Exchange: OTCQB
Stock Symbol: GPVRF

ytse
Irregular
👍49
ytse

Travis,
It is truth that some paid members just posted a ticker, it is nothing wrong with that if other
members want to do their DD. It is more fun……
I read articles and I am very interested in reading other members’s ideas too.
I mentioned to you a couple articles back about VTIQW, IF someone here picked up my signal and bought some warrants, they have a lot of capital gain already, right?
VTIQW at $6.25 now is NKLAW at 29.19!
Here is another one: FMCIW, it cost me at $0.27, today is at $4.60……
Do your own DD.
Good luck.

ytse
Irregular
👍49
ytse

Travis,
May I make a suggestion?
Your website has not been changed a bit all these years besides adding Doc Gumshoe, I think you should add an Irregular Members HOT tips column. Paid members post a ticker or tickers
and give a very brief reason why they are HOT! Let the members do their own DD before they invest. That will be fun and it will increase a lot of traffic or comments in your website.

bwa123
Irregular
👍6
bwa123

Great idea. However Could attract a lot of trolls making fake recs. Will need a monitor.

janet2wealth
Irregular
👍0
janet2wealth

Pls which stock can i buy and make money am a beginner am new int stock and shares

Add a Topic
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frank
Guest
frank

i did have this ORBC about 5 years ago made no money was to soon now is doin well but i will wait to buy it again, for all i know we will have another black swan in about a week or so, i decided to put may hands in my pockets and buy no stocks.

advantedges
Irregular
👍110
advantedges

So What does Seymour Butts Have to Say?