Earlier this week, I showed you the second of my five rules for investing in the world’s single greatest wealth machine – tech stocks.
Today, I am keeping my promise to you by telling you how to use Rule No. 3 to become a much savvier and far more profitable tech investor. I’m even going to tell you about a new tech-stock profit play this rule helped me identify.
But first I want to show you how I recently put this strategy to work with a recommendation that enabled my readers to nearly double their money in less than three months.
About a year ago, you see, I spotted an emerging trend that had “Big Money” written all over it. Industry insiders were referring to it as “Mobile TV” and were saying it was the Next Big Thing in tech.
But I quickly realized that all of these experts were looking at this from their own limited vantage points. Engineers were taken with the technology itself. Hardware makers were viewing it as a product opportunity. Service providers were either viewing it as a threat … or were cavorting about as they thought of all the users they could sign up.
I saw the whole picture. As a veteran tech investor, I’m trained to take a step back … and view the entire opportunity. I recognized this development for what it really was – the latest result of the “Mobile Wave,” a truly disruptive technology trend with the power to transform the world around us.
And that transformation was starting right in my own home.
My two TV-loving daughters – tech-savvy teens who define the term “early adopter” – were no longer watching television on the giant plasma that adorns our living room.
They were catching these shows and their favorite flicks on a smartphone, laptop – or on the iPad they like to liberate from my briefcase.
Anyone who’s been on a recent commercial flight has probably seen the same thing.” Perhaps one of their seatmates was watching a TV show that they downloaded just for the flight. Or a movie. Or a History Channel documentary.
Mobile TV (and video) were clearly assuming a vital role in the future of entertainment.
In short, this transformation was playing out right in the open – any investor could’ve spotted it.
I did – and found a way to profit. I put subscribers of my Radical Technology Profits trading service into a sizzling mobile TV play – LIN TV Corp. (NYSE: TVL)
And my prediction was right on the money…
My subscribers pulled down a 102% gain on LIN TV shares in just three months. That’s an annualized return of 408%.
That’s one stunner.
And here’s another. Even after we pulled down this whopping profit on this small-cap leader, the mainstream media never picked up on this amazing story. I mean, you could have scoured the pages of The Wall Street Journal, Forbes and Fortune without ever getting a whiff of the massive profit generator that LIN turned out to be.
It’s almost as if the company didn’t exist … and the Mobile Wave wasn’t happening.
And the Wall Street crowd was just as clueless. There’s basically just one bona fide analyst who covers the firm. Not only that, but The Street.com just “downgraded” the stock from “Buy” to “Hold.”
That’s flat out insane. After a recent correction, TVL is on the move again – and has surged more than 25% in just the last five trading sessions. In early trading Thursday it was the second-biggest advancer on its exchange.
I was able to see what the technical experts, the Wall Street analysts and even the news media didn’t pick up on because I followed the third of my five rules … and one that’s vital if you really intend to amass meaningful wealth.
Tech-Wealth System Rule No. 3: Ride the Unstoppable Trends
I’m able to spot these big, newly emergent trends because I have a bit of an insider’s edge, a talent for identifying opportunities that most of my rivals will miss.
That’s because I started developing this skill as a teenager, under the tutelage of a true master – a walking, talking encyclopedia of critical defense technology.
I’m referring to my Dad – Clarence A. “Rob” Robinson Jr., who remains one of the world’s leading authorities in the field.
To this day, I still meet people who tell me how much they loved reading my Dad’s reports about some of the sexiest technology the Pentagon ever invented.
My “apprenticeship” started back during my senior year of high school, when we were living just outside Washington, D.C.
My father used to regale me with fascinating stories about breakthroughs in semiconductors, exotic new materials, lasers, missile guidance systems and jet fighter avionics. Or some futuristic tech on the drawing boards at the DoD’s world-renowned DARPA division.
And he did more than just list these emergent technologies … he also connected the dots.
He knew how to separate the winners from the losers and could explain with great authority why some breakthroughs were destined to be hits.
Later in the 1980s, I actually worked for him analyzing all sorts of technology involved in Ronald Reagan’s Star Wars program. My job was to uncover and report about the hottest new trends in cutting-edge technology. It was a great gig, and was one that helped me develop the analytical skills that I now use for the benefit of my subscribers.
Indeed, I honed these skills and bolstered my mental arsenal by talking with top Silicon Valley scientists, questioning corporate executives and sitting down for long sessions with computer engineers.
Though the focus of my work was largely defense, I could already see how these discoveries would permeate the commercial world, and bolster the intellectual property portfolios of publicly traded firms in the “civilian” sectors of the economy.
My dad and I often talked about how Pentagon tech – discoveries such as Velcro, GPS, microwaves, lasers, and even the Web – would one day become commercial businesses that were massive in magnitude.
I guess you can say that I’ve actually lived my third rule of tech-investing wealth – for decades.
And my subscribers have been the biggest winners.
Just look at the call I made for my Radical Tech subscribers last year on another “Unstoppable Trend” – a disruptive trend known as Big Data.
Shortly after launching that research service last spring, I recommended one of the sector’s small-cap leaders – and even described it as an-almost-can’t-miss profit play.
And once again we hit the bulls-eye.
As of this week, my Radical Tech subscribers are up more than 107% in less than a year.
This was another winner that the mainstream media and most of Wall Street completely ignored.
I’m talking about Cray, Inc. (NasdaqGS: CRAY)
Several years ago, Cray fell out of favor with Wall Street. The “experts” considered them “out-of-date” because they made supercomputers.
But I knew Cray was a hidden gem because I have followed the firm since the 1980s when I first began analyzing the impact supercomputers would have on Star Wars and other defense programs.
I knew they were onto something big when in 2005 they hired the multi-talented IBM veteran Peter J. Ungaro as president and CEO.
Ungaro had a vision that supercomputers could be relevant if they could be made many times faster.
And Cray makes some of the fastest machines on earth. They’re needed to solve such Big Data puzzles as climate change, using nanomolecules to cure disease and rerouting traffic in major cities to save lives and reduce gridlock.
Like Mobile TV, Big Data is the embodiment of an Unstoppable Trend.
At its heart, Big Data is a simple idea. Companies, research labs, and government agencies have oceans of raw, unstructured data that can be tapped to solve a wide range of problems.
We’re talking challenges as diverse as… using DNA as a cure for disease … to sorting through billions of online transactions per day in a search for patterns that would reveal fraud or embezzlement.
Today, Big Data is growing exponentially. As this desire to tap into Big Data makes its way around the world, Cray has emerged as the technical leader in its field.
Not only does it boast the world’s fastest supercomputer, it’s picking up new multi-million dollar contracts left and right.
In the past two years the stock has rallied for gains of 247%. Trading at roughly $21 a share, the stock sells for just five times forward earnings and has a 38% profit margin and a 63% return on equity.
Because Big Data solves so many problems that can affect the lives of millions around the world, this is an emerging catalyst that’s destined to produce more big winners like Cray
Of course, the Mobile Wave and Big Data aren’t the only trends I’m monitoring – not by a long shot. There are others – like Cloud Computing, Synthetic Vaccines and Miracle Materials – that are creating massive profit opportunities of their own.
In the months to come, I’ll be sharing those (and more) with you, and will show you how to spot, analyze and exploit them – just as my Dad did for me.
And I have a deep database of stocks that are poised to benefit from Rule No. 3.
But before we delve any deeper into those, I first want to provide you with the rest of my tech-investing blueprint.
In my next column, I’ll tell you all about Rule No. 4 on my list of Five High-Tech Wealth Creators.
It shows you how to identify additional opportunities … as well as traps to avoid.
I’ve employed these strategies with great success. Now I want to share them with you.