Louis Basenese, The Most Expensive Investing Book, and a couple Teased “Secret” Stocks

Sniffing around some recent teaser ads from Wall Street Daily

By Travis Johnson, Stock Gumshoe, August 21, 2013

The folks at Wall Street Daily are very active in trying to build up their subscriber lists — and Louis Basenese, who writes the WSD Insider newsletter as well as the more small-cap focused MicroCap Tech Trader, has made a couple of hot picks over the last year or so that have gone up abruptly (some have also come back down), so he tends to get a lot of attention from Gumshoe readers who enjoyed some profit from his teasing of Parametric Sound (PAMT) or Unipixel (UNXL) or, more recently, of ImageWare Systems (IWSY).

I’ve never owned any of those three myself, his picks that get aggressively teased in promos tend to be very speculative looking (at least to me) plays on a projected future based on some proprietary technology. That’s heady stuff, and it sometimes works out, but going into it unless you understand the marketplace and the company very well is undoubtedly risky. I take risks with my investments, but when the level of uncertainty makes me queasy I stay away or, if I’m unable to resist the temptation, I only gamble with very small amounts of cash.

Since everything sounds good in the teaser pitch for a newsletter (otherwise, well, those copywriters would be out of a job), I prefer most of the time to wait out ideas and see if I like the stock some day later on, when I’ve forgotten the promises of the newsletter tease and can just assess the company on its own merits. Of course, I make lots of mistakes, I can’t (because of both my trading rules and my personality) be a rapid trader, and I can’t own even every stock that looks appealing without completely diluting my portfolio (I own too many stocks as it is) … so I’ll miss a lot of hot rides. That’s OK. I’d rather write about these stocks for you than try to trade every one of ’em.

But I know that there are a great many of you who delight in trading the stocks that are so actively pitched by the newsletters — some of these letters, after all, have tens of thousands of paying subscribers who can turn an unknown stock into a highly liquid barnburner … at least for a little while (though sometimes the ride ends abruptly), and sometimes those little speculative tech stocks do become “real” companies that generate profits and grow. So we like to get the names of those stocks out there so you can evaluate them for yourself.

I’ve got a couple names for you down below that seem to be getting teased now for his MicroCap letter … but first, the latest pitch from Basenese’s WSD Insider is not for a stock but for a book. What is it?

I’ve been getting a lot of questions about Basenese’s tease today for “one of the most expensive books on earth” — he’s promoting his WSD Insider subscription by promising to send you his crib sheet version of this famous investing book, a book that “normal” folks really cannot buy. Here’s how he describes it:

“This is easily the most intriguing column I’ve written all year.

“It’s about one of the most expensive books on Earth.

“The book reveals a way to accomplish the impossible, wh