Yastine says “This Unheard-of Tech Stock Can Set You Up For Life … If You Act Before November 4th”

What's being teased in "5-Minute Blueprint for Becoming a One Stock Millionaire" Ad from Banyan Hill?

By Travis Johnson, Stock Gumshoe, August 19, 2019

An earlier version of this article was published on January 30, 2019 — at the time, this was teased as an “inconspicuous $20 stock” that would create one-stock millionaires beginning on February 15. Now, a very similar ad with slight updates is circulating promising “one stock millionaire” status from an “unheard-of tech stock” that can “set you up for life” — with a new made-up deadline, this time it’s only “if you act before November 4th.” So we’ll dig in again, see if anything has changed and update things as needed, and get you your answers.

Here’s what the original headline was on this story, FWIW:

“Yastine says ‘This Inconspicuous $20 Stock Could Create America’s Next Wave of Millionaires … Beginning February 15th”

So, since the ad’s still running and hasn’t changed much, we’re re-posting this article from January with some mild updates… he’s still teasing the same company.

There’s no beating around the bush with this one — Jeff Yastine is telling us he has found the…

“One Stock That Could Make You Millions

“The company I’m going to discuss today is one of the most powerful yet unknown technology providers on the planet….

“… its revenue is projected to double within the next 60 months.

“That alone should grab the attention of any investor who wants the chance to become a One Stock Millionaire”

All that from a $47 newsletter… what could go wrong, right? Heck, they even say on the order form that this subscription is somehow a $995 value! (Though do be careful, that $47 for Total Wealth Insider seems to include trials to a second letter, and your subscription will automatically renew to both for a total of $194/year.)

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Anyway, we’d like to ID that “Inconspicuous $20 stock” for you so you can think for yourself, do your own research, and not be committed to a subscription based on a hype-y presentation. So let’s get started… here’s the intro promise of the presentation, which Yastine gave on a stage to some sort of group of Banyan Hill subscribers:

“Think of what it would be like to turn $10,000 into $100,000 … then as the stock keeps shooting upward, watching that $100,000 turn into $1 million.

“The secret of course is buying the right stock at the right time—before everyone else hears about it.

“That’s why I’m here today.

“I’m here to tell you about that one stock….”

And here’s the wording on the actual order form:

“I’m going to show you the best way to hit the million-dollar mark with just ONE stock.

“You are just one click away from discovering the $20 stock that could turn every $10,000 into as much $1,000,000.

“This company is set to dominate both the broadband and the 5G wireless markets across an ENTIRE continent.

“Insiders are buying up shares hand over fist.

“And, for the moment at least, very few people outside of Wall Street are even aware this opportunity exists.

“This is it. This is your best chance to turn $10,000 into a million-dollar windfall.”

That “insiders are buying” part is specified here:

“They have virtually an unlimited audience. And insiders have scooped up more than $20.6 million worth of shares in the last 18 months.”

And, of course, this windfall of wealth is coming your way “beginning February 15th November 4″ — mostly, I assume, because the Banyan Hill copywriters know full well that ads without deadlines don’t spur people to subscribe as quickly.

So what does the company do? Here are some clues:

“Millions of people across 20 nations depend on their technology each and every day to shop online, download movies, store family photos on the cloud, post on social media, and much, much more.”

And we’re told that their technology is used by all the biggies — Amazon, Netflix, Walmart, Facebook, Disney, Google, IBM, Microsoft, etc.

We’re also told that “its revenue is projected to double within the next 60 months” — which is an awfully specific and useless forecast… no one, of course, has much visibility in what any market is going to be like in FIVE YEARS.

Other hints?

Insiders have bought “over $4.3 million worth in the last two months”

(yes, that clue is the same as it was in January — so presumably it’s not “the last two months” anymore).

What else?

“… shares of this company never had an Initial Public Offering.

“Other than company insiders and a handful of major players on Wall Street, few are aware their shares have even gone public.

“They began trading on the NASDAQ with zero—and I mean ZERO fanfare.”

OK, that’s interesting. What else?

“I believe this company will make an announcement on February 15 November 4 that will put it front and center on Wall Street’s radar.”

Yastine says that there are three big things he looks for in stocks…

First is an “unlimited audience” for the product… and this one apparently has that potential, with 6.5 million monthly users but on their way to more than 600 million in 2040 (who’s making projections like that, I don’t know).

And he drops a new clue…

“With operations run out of Denver, Colorado, they’ve already become a broadband technology provider in more than 20 countries.

“And they are now positioning themselves to dominate an ENTIRE continent (… of 639 million people)”

Apparently they also have experience doing just that… he says…

“Within 12 years time their parent company completely dominated the broadband market in Europe….

“Now they’ve spun off this entirely new company —headed by some of their most senior executives—in order to do it again.”

OK, so we’ve got some kind of spinoff, and the folks behind the parent company apparently posted 995% gains for investors at some point.

Second is that “insider ownership” bit… the biggest insider is a “rainmaker,” apparently, and Yastine says that “in the last 18 months he has purchased $16.3 million worth of stock in his new company.”

And unlike most teases about “insider buying,” these guys are apparently buying:

“They didn’t exercise options to get the shares.

“And they didn’t receive them as bonuses or compensation.

“They have been buying shares hand-over-fist on the open market … with money out of their own pockets.”

And the third thing Yastine says he looks for is a “profit accelerator” — which I guess most investors would call a “catalyst,” some future event that is likely to cause a stock to rise in price, a restructuring or new management team or new product release or big earnings date or expansion plans or something like that.

And apparently for this stock, the “profit accelerator” has something to do with 5G:

“Well, for the past 18 months this company has been working on not just one but two projects that will allow it to dominate 5G in all its markets.

“They’re already poised to dominate broadband across an entire continent.

“Now they’re expected to control the flow of 5G wireless data for a quarter of the globe as well.”

OK, so the hints about this “rainmaker” who has made more money than pretty much anyone else in recent decades are clearly pointing at telecom/cable magnate John Malone, who has so many spinoffs and tracking stocks that it’s almost impossible to keep track of them all.

So, one gathers, we’re being teased here about one of his more recent spins… some company that is aiming to dominate internet access on some continent that isn’t Europe. Which means, dear readers, that Yastine is hinting at… Liberty Latin America (LILA for the common shares, LILAK for the more liquid non-voting shares, super-voting shares get 10 votes each and trade OTC at LILAB).

Liberty Latin America is a telecom company that provides fixed-line telephony (declining in Latin America just like it is elsewhere), video and broadband internet service, primarily under their VTR and C&W brands, much like AT&T or Comcast in the US, and they also have 3.5 million mobile subscribers, most of whom are still being upgraded to 4G. 5G is not really on the radar yet for Liberty Latin America, that’s an expensive upgrade, but presumably it will be at some point.

And yes, the CEO and CFO and a director did combine to buy about $4.3 million worth of shares fairly recently, though the presentation that Yastine initially gave must have been a while ago because the buys were in August last year. So pencil that in under “last twelve months,” not “last two months.”

On the positive side, those insiders last bought at average prices a little over $18, so if you want the common stock it’s cheaper than that now at about $16. Most of the insider “acquisitions” are a result of stock grants, not purchases — in 2018 the executives were given a total of almost 24 million shares and options, which today would be worth almost $400 million… so we shouldn’t overreact too much to those smaller insider buys, though they have continued to varying extents over the past year (not nearly in the million-dollar range, but steady).

And yes, John Malone owns a gajillion shares of this one, too — and has bought and sold tons of them. Barron’s did a nice profile of John Malone and his dozen or so major companies (Liberty Braves, Discover, Liberty Broadband, Lions Gate, etc.) back in November, and that’s worth reading if you want to try to get a handle on his strategy and thinking. They note that Malone had 25.5% voting control of Liberty Latin America, in case you’re curious, and I don’t think he’s sold any so that’s probably still the case.

It’s hard to understand the web of Malone companies, but it’s also hard to complain about his peformance — not every one of the companies has done well, but shareholders who have followed him in general have very likely done well in most of the Liberty stocks. He is a big fan of using cheap money to lever up equity, giving himself and other shareholders a better return, and that might be a risk if money stops being cheap — but it’s not an immediate risk for Liberty Latin America, at least, their maturities begin to hit several years in the future and they pay only about 6% interest, with fixed rates.

Liberty Latin America seems to mostly be a play on Puerto Rico’s recovery at this point, levered by the value of their big subsea fiber-optic network in the caribbean that bolsters their mobile subscriptions, and by the continuing upgrading of customers to 4G service in PR, Costa Rica, Panama and elsewhere, and make investments in places like Chile. They are facing the same cord-cutting and phone-cutting trends as we see in the US and elsewhere, but their broadband business and business telecom services seem to be doing well and it may be that Liberty LatAm will have an easier time growing and doing acquisitions in Latin America than it did in Europe, where the competition is much stronger and more entrenched and the antitrust sentiment is robust.

So I have no idea how it will work out, of course, I have not looked at LILA before, but aside from the fact that I don’t think it will be a meaningful 5G story in the next year or two it does look interesting as Puerto Rico continues to recover… and betting against John Malone has usually been silly, even if you can’t quite understand his complex web of financial engineering. Maybe a few years of rising rates will finally put a dent in his empire, and LILA is still quite concentrated in a few major markets, mostly in the Caribbean, so there’s absolutely the risk that a weak economy (or another natural disaster) could hurt them, but it might be worth considering if you like the Malone strategy of rolling up controlling stakes in telecom companies.

And as far as that date goes… the February 15 date was when they were expected to report their earnings, which were fine but not hugely impactful (and they actually came out on February 20). The November 4 date is a few days before they are expected to release earnings next (November 8 is the day that’s penciled in right now).

I don’t know any reason to expect a big change on that date, but they could always announce something or surprise one way or another (earnings guesses are all over the map, but analysts see the company growing revenue at about 4% a year and EBITDA at about 5% — Liberty trades at an EV/EBITDA ratio of about 15 now, much higher than companies like Comcast (9) or Millicom (7), and higher than the 12 multiple earlier this year, but perhaps not wildly out of line if they can get their acquisition game going and grow faster than that).

The biggest news earlier this year was that they called off their attempted takeover of parts of Millicom, which would have given them a much bigger business in South America to complement Liberty’s strength in the Caribbean… so it might be that Yastine was counting on that deal to help Liberty grow more quickly, I don’t know. Liberty would presumably be a little bit challenged to grow with major acquisitions without selling more stock, since they already carry a pretty hefty debt burden, but that hasn’t stopped Malone companies before.

And yes, EBITDA is a made-up thing… but it’s pretty widely followed for debt-heavy “steady cash flow” companies like cable providers, and it was popularized (perhaps even invented) by, you guessed it, John Malone. He used it to explain and justify the decisions and valuations he made when building prior cable empires and growing cash flow without paying taxes– particularly TCI in the 1970s and 80s. That focus on cash flow growth (rather than income, which is taxable) became his hallmark, and it certainly served him (and his investors) well, even if it probably introduced a very damaging concept that has been abused by other companies in other sectors.

And that’s about all I can tell you after a few minutes of research — but yes, that $20 investment (now about $16) that Yastine thinks will turn your $10,000 into a million bucks must be Liberty Latin America… and I would be delighted to know what you think of it. Any longtime Malone followers out there who have favorites in his stable of stocks? Think LILA is well priced after a slow year, or too levered or growth-challenged? Let us know with a comment below.


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Miles
Member
👍8
Miles

My guess after hearing the teaser was ATUS (Altice USA inc)

david
Guest
david

funny, i was just wondering what stock he was touting. thank you as always

lsfrancis
Member
👍11
lsfrancis

yes, it is LILA a medium risk stock (according to tradestops)

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edw2269
Irregular
👍51
edw2269

Liberty Latin America (NASDAQ:LILA, OTC Link: LILAB)) announced on Jan 17 that it agreed with its third-party insurance provider in late December 2018 to settle claims for a gross total of $138.5 million under its integrated group property and business interruption insurance program for the damages caused by Hurricanes Maria and Irma. After the deduction of $30 million of self-insurance, the net third-party insurance proceeds for Liberty Latin America are $108.5 million.

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QSB
Guest
QSB

re: LILA Not sure if the link at the bottom will copy through, but though John Malone does not seem to be listed with the insiders, starting in November it seems institutional investors are generally buying not selling https://www.marketbeat.com/stocks/NASDAQ/LILA/ Which institutional investors are buying Liberty Latin America stock? LILA stock was acquired by a variety of institutional investors in the last quarter, including Genesis Asset Managers LLP, PenderFund Capital Management Ltd. S&CO Inc., First Manhattan Co. and Bank of Montreal Can. Company insiders that have bought Liberty Latin America stock in the last two years include Balan Nair, Christopher J… Read more »

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contractorr
Member
👍58
contractorr

Mr. Johnson, you always come up with answers to teasers but have you gone back and verified how many times you on target? I am not challenging you, just curious.
About LILA, I would be very careful as long as Puerto Rico progress. There has been no real economical growth in last 30 years.
Thank you.

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missviv
Member
👍34
missviv

I rely a great deal on your comments, when looking to purchase stock, in regards to your take on teased stocks. I love your honesty about these teasers. Don’t ever stop!

Chris
Irregular
👍5
Chris

LILAK up over 8% Mid-day, Looks like some people like it…

oregon don
Member
👍2
oregon don

TOOK A NOSE DIVE ON 8/23/19 TO $15.29

Ross
Guest
Ross

You are 100% on target the company is LILA
And it is a special report of Jeff Yastine he took a position in the stock 1/28/19 at 16.32 a share. I subscribe to Yastines investment news letter, however it is extremely important to do your own analysis before investing in anyone’s recommendations.

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Matt
Guest
Matt

He actually paid $16.15 a share for LILA.

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Albert
Guest
Albert

Hi Ross – so which symbol is he referring to LILA, LILAK or LILAB? or is it the same just on different boards? Thx

Albert
Guest
Albert

Join the discussion…LILAK more liquid, non voting shares, LILAB super voting shares get 10 shares and trade OTC… ?

allang43
Irregular
👍4
allang43

I bought shares of Liberty over 10 years ago on the recommendation of John
Dessauer(Investor’s World-retired), who still manages investments
here in Naples, Fl. I’ve received more than a dozen tracking stocks with
one buy out. I’ve held and added shares on market corrections.
I highly recommend reading the Barron’s article. Liberty Broadband
did well today.

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dweiss60
Member
👍11

Fwiw, this stock does screen cheap on ev/ebitda, and if they focus on free cash flow and share repurchase (as opposed to m&a), there is a fairly clear path to $2+ fcf /sh over the next couple years. That’s obscured by very high depreciation, which is typical of cable companies, but not a lot of that plant needs to be replaced near term, and unlike some US markets, a lot of these markets are smaller and won’t face new competition from 5G for many, many years. So it’s not a particularly expensive stock. Regarding what could go wrong, a lot… Read more »

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tsteele93
Member
👍36
tsteele93

You are such a party pooper. I mean, I read these e-mails – realize that I’m going to be rich and my friends are going to be so envious, then I come here and find out that there is a catch. It is so frustrating.

Could you just please give us a sure thing so I can retire already?

Thanks!

Your pal,
Tom

Gina
Guest
Gina

LOL, tsteele93 !

backoffice
Member
👍315

He changed the date to May 8.

nilsmellquist
Irregular
👍36

Looked at this a while ago. Lot of goodwill. Big waste of money buying cable & wireless assets. Really have a hard time believing this is going to be a 20 bagger. You can “bet my bottom dollar” that this is not on my top priority lists for new money investments.

backoffice
Member
👍315

Thanks Travis for the insight, and saving me some money

art
Guest
art

FYI
Buffet owns 2.7 million shares along with 130 0ther institutions

the lates insider buy was the Pres, CEO +13k shares

Joe R
Guest
Joe R

LILA– Banyan Hill sent out an update after hours on Friday, March 29. I would expect some volume on LILA come Monday, April 1. Anyone else get the Yatine teaser video? If so, what kind of reaction usually occurs after these are circulated and other investors look for and find the mystery stock in places like this website?

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65_sohc
Member
👍10
65_sohc

Yastine is running an updated version of the same teaser. Now the big day is May 8. According to Ideas by Tradesmith both Buffet and Gates own shares.

dan yariv weisbuch
Guest
dan yariv weisbuch

the yastin-mampilly banyan is boring with the same copywriters juggling with millions in all directions. if one follows their prose (god help those those that follow their investment recommendations) for 3 years and make the arithmetic, one is already billionaire. i would make a rule of not following. about the 5G they demonstrate a total unknowledge of the market and worse, of the company trumpeted to the world.is almost an insult to the intelligence. shows a disdain of the eventual readers. i may give examples of the same sort like $PH, $TSM, $STM, $MYGN, the method seems to be the… Read more »

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SageNot
Guest
SageNot

Questionable as this stock is still in a slow downtrend for over 4 years!
https://finance.yahoo.com/quote/LILA?p=LILA
Evidently Yastine c/b wrong, AGAIN!!!

kevinrawle
Guest
kevinrawle

Jeff Yastine claims to have stocks that will go up by 5-20,000% but so far in 2019 not one of them has hit the 25% mark – so what gives, are we supposed to sit here losing money for years while we wait for one of his picks to explode, and since there are no guarantees, this smells like a total crap shoot or lottery. I think you have the same chance of hitting it big with Jeff’s stocks as winning the lottery.

FRANK8MORRISS
Guest

Dear Gum Shower’s
I don’t know how long these promises or Promises until they say “nothing is garnetted in the stock market”. It’s pretty much a promise, all these future tellers, are correct? How many times has the Guru been correct with their call?
Thank :-: You
FRANK eight MORRISS

Tom8
Guest
Tom8

the question is Frank8, how many times has Gumshoe been right?

toi333000
Member
👍0

What is the difference between LILA and LILAK ? I had placed them on my watch list, I’d watched some John Malone’s interviews, I think he will not throw his reputation away by owning 25% of this company and fail. What is the best price point to enter, if interested ? Mr. Malone also said buy gold as a hedge too ! Physical Gold.

livelyrock
Guest
livelyrock

Puerto Rico just went though a hurricane. Did this affect the stock price or will it in the future?

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backoffice
Member
👍315

Since Puerto Rico still hasn’t recovered from the last hurricane and more damage is expected shortly I think I’ll skip on this one. I’ll wait for the next date change on this one.

Bakes
Guest
Bakes

Well today wasnt a good day for LILA. I lost my shirt. It crashed without anyone news that I could find that caused the stock to crash.
Is there anyone out there that knows anything as to why LILA took the nose dive….and would you suggest that i hold on praying for a recovery or take the loss.