Wall Street is salivating over the upcoming public debut for Snap Inc.
And who can blame them?
The initial public offering (IPO) for this developer of the popular instant-messaging service Snapchat will likely be huge.
And I’m not exaggerating.
Once shares begin trading as soon as next month, Snap could be valued between $21 billion and $25 billion – making it the largest U.S. tech IPO since that of Facebook Inc. (Nasdaq: FB) back in 2012. That’s a figure that could serve as a big catalyst for the rebounding IPO market.
Also salivating: thousands and thousands of retail investors… and maybe even you.
But hold on…
As a longtime Silicon Valley insider, I love IPOs. If you’re an investment banker, venture capitalist, or company insider, you can make a fortune with them. (Plus, nothing keeps a bull market running like popular new issues that bring fresh cash out of the sidelines.)
However, most investors should avoid buying Snap – or any other company going public – at the open.
At that point, you’re likely to pay top dollar and very well could see the value of your investment drop immediately and steeply.
But we’ve got a way around that.
In fact, we’ve got a way to cash in on the Snap IPO with none of that risk.
It’s an investment that will bring you many years of profits.
As I predicted in my 2017 outlook a few weeks ago, tech is off to a screaming start to the year. The tech-centric Nasdaq Composite is up close to 7% versus the S&P 500’s 3.9%.
Here’s the key: As the years go by, Silicon Valley will be providing more and more of the technology that’s becoming critical to our society’s existence, like broadband and mobile communications, wearable tech, sensors, virtual and augmented reality and medtech.
However, virtually none of that can exist without the fundamental component I’m going to tell you about right now. It’s absolutely indispensable to innovation, miniaturization, mobilization and utilization.
This little part enables the global spread and adoption of technology – and you bet it enables massive tech profits, too.
Imprinted on the cover of The Hitchhiker’s Guide to the Galaxy – the fictional “standard repository for all knowledge and wisdom” in the comedic sci-fi series of the same name by Douglas Adams – is the phrase “Don’t Panic.”
Arthur C. Clarke, a British science-fiction author even more renowned than Adams, called it the “best advice” that could be given to humanity.
He was right.
That’s why the same sentiment is behind Rule No. 2 of our five-part investing system, which says to “Separate the signal from the noise.”
And I hope you followed that rule back in the summer of 2015, when it seemed like all of Wall Street and Silicon Valley were panicked over Apple Inc. (Nasdaq: AAPL).
At the time, the so-called “experts” said the sun was about to set on the world’s most valuable tech franchise – and fled its stock in droves.
However, if you followed along here and put into action our tech wealth-building strategies when it came to Apple, then you’re sitting on some huge gains.
If you’re new around here, you can do the same thing.
In his first days in office, President Donald J. Trump has made it clear that his tough talk on China was more than just campaign rhetoric.
He continues to criticize the world’s second-largest economy for what he says are unfair trade practices. Not only that, but he’s also suggested slapping up to 45% tariffs on Chinese imports.
Along the way, he has lambasted U.S. tech firms that outsource production to China and then sell those goods here at home.
And then there’s the South China Sea. During his confirmation hearing, Secretary of State Rex Tillerson said China should be blocked from the artificial islands it’s built in this crucial shipping route.
With all this saber-rattling, now would seem to be the worst possible time to invest in anything related to China.
I don’t know about you, but that kind of thinking – that kind of pessimism – just makes me dig deeper… to do more research. Because I know there’s always a place to make money in any market.
You just have to find it.
And my excavations have uncovered a sizzling Chinese tech sector that lies well beyond the reach of the leader of the free world.
Today we’re going to investigate a unique vehicle that allows us to tap into firms that are growing as much as 40% a year.
And that will boost your initial investment by similar amounts.
I know only too well the thrill of finding an exciting small-cap stock set to soar.
Indeed, we regularly talk about how fast-growing stocks can greatly improve your fortune.
But there’s a flip side to that story. You can also find plenty of treasure in what many might see as a “plain vanilla” sector – provided that company is using high tech to shake things up.
Just take a look at the U.S. home-loan market…
Right now, it generates more than $1 trillion in volume a year. And with home sales returning to prerecession levels, the staid and complex market for mortgages is ripe for disruption – and big gains for those who know where to look.
That’s why today we’re using the five “rules” laid out in Your Tech Blueprint to turn up a great tech-centric play on this profitable dynamic.
Lean in – I want to let you in on a little secret.
Much of what the technology crowd – the media, marketers, analysts, etc. – tout to you as “disruptive” often isn’t.
I have to admit, I even do it myself sometimes in an effort to grab your attention. (Though I hope I always follow up those small bits of of hype with solid, profitable guidance – and that’s why you stick around.)
Consider cloud computing.
Many folks think of the cloud as a brand-new innovation. After all, the cloud didn’t really get much traction on Wall Street until five years or so ago.
But really, the seeds for software-as-a-service (SaaS) were sown nearly 20 years ago. Back then, most folks logged onto the web using painfully slow dial-up connections – and so delivering and storing data and software on the internet couldn’t get much traction.
Well, it’s getting traction now: According to IDC, SaaS spending alone will be worth $50.8 billion by the end of next year – and will surpass $112.8 billion by 2019.
In other words, even though cloud computing got started back in the internet’s “Stone Age,” there’s still plenty of money to be made here – if you know where to look.
Of course, you could invest in one of the cloud giants – say, Amazon.com Inc. (Nasdaq: AMZN) or Microsoft Corp. (Nasdaq: MSFT). But I like to dig deeper for you folks.
I like to find under-the-radar, “secretive” companies that can produce bigger and faster profits than those usual suspects. And I’ve found one that got its start as an SaaS provider of human-resources technology nearly 20 years ago, at the dawning of the “cloud era.”
Now, after going public less than three years ago, this firm growing faster than ever – doubling its sales roughly every 2.5 years. (With its share price following closely behind, helping its investors absolutely cream the market.)
Like many of you, I spent this morning glued to the television, watching the Inauguration Day festivities – and chaos.
And I expect to spend some more time tomorrow checking out whatever protests are going on.
But that’s it. No more distractions.
After that, it’s back to following Rule No. 2 of Your Tech Wealth Blueprint – the five-part system we use to identify the companies best positioned to yield hefty profits… the ones we want to invest in.
That means it’s time to buckle down and “Separate the Signals From the Noise.”
Turn off the news for a while and concentrate on following another one of our Tech Wealth Rules – No. 3 – “Ride the Unstoppable Trends.”
And one of the biggest tech trends going today has little to nothing to do with the presidential transition or the new administration’s goals – but it’s still unstoppable, and that means we need to keep watching it.
I’m talking about the need for broadband wireless internet speeds … known in the industry as 5G.
Today, I’ll not only show you why 5G is destined to become a vital Singularity Era technology that will change the way we work and live.
I’ll also show you how the need for 5G speeds affects me personally – and millions of other Americans.
Better yet, I’ll reveal a fast-growing, small-cap company that’s already playing an integral role in bringing 5G to “the masses”… and is poised to hand its shareholders market-crushing gains.
Donald Trump promises to create 25 million new jobs over the next decade with his economic plan.
And as we’ve been discussing over the past few weeks, I think that plan is a good one – and will be very good for tech companies and their investors.
However, there’s also this…
Robotics and artificial intelligence – “automation,” in a word – will eliminate tens of millions of jobs over that same stretch.
It makes many of us planning our retirement – trying to put together enough money and investments to guarantee that our “golden years” are prosperous – wonder how we’ll do it. Moreover, it makes us worry about our children’s and grandchildren’s futures.
How can anyone save or invest if they’re looking at a “jobless future”?
One way to do it – to not just survive but to thrive in this unknowable future – is to profit from the very automation technologies that are threatening humanity’s livelihood.
And to do that, you have to “pick” the best stocks in this sector.
I’ve just spotted such a company – one whose technology could to displace millions of “back office” workers in the coming years. You know, the folks doing data entry and handling the customer service lines.
Its technology is known as robotic process automation (RPA).