Archive for August, 2013
Let me share a secret with you.
If you really want to get rich in stocks, don’t waste your time trolling the headlines for investment ideas.
All you’re doing, you see, is following the herd.
And a follow-the-mentality crowd can only have two outcomes …
You’re either late to the party on the good ideas – meaning all the profits are gone.
Or you end up getting shunted away from the winners – and into the losers.
Either of those outcomes takes money right out of your pocket. And one investment in particular really makes my point.
If you followed the headlines over the past six months – even in the venerable Wall Street Journal – you’d have wanted to get as far away from this market – and this stock – as possible.
The reason: The headlines couldn’t have been more negative in tone.
But the stock has rocketed 175% during that short stretch.
Don’t worry … that’s just the beginning.
I can show you why this stock can be an easy double from here – even though the headlines will continue to be as negative as can be.
Back on Aug. 14, Cisco Systems Inc. (NasdaqGS: CSCO) said it would lay off about 4,000 workers – roughly 5% of its staff.
That wasn’t the only thing that rattled Wall Street…
CEO John Chambers also slightly lowered earnings guidance for this fiscal year. That sent Cisco into a tailspin: The shares dropped 7% that day and are off 9.7% since Chambers announced the cutbacks.
Once again, however, both Wall Street and the mainstream media missed the real story.
You see, Chambers isn’t just cutting workers to cut costs and cover a shortfall due to slowing revenue. He’s also trying to reallocate the company’s resources to capitalize on a new business opportunity that he sees for Cisco.
And here’s the best part.
This emerging business opportunity could be worth $14 trillion – meaning it’s almost as big as the entire U.S. economy.
That makes this high-tech bonanza one of the biggest profit opportunities we’ll see in our lifetime…
And we’re going to get you in on the ground floor.
I get the same question every time we double our reader’s money:
“How do I handle the really big gains?
I mean, what should I do now that my stock has zoomed past 100%. Cash out? Hold? Load up on more? What’s the best move to make now?”
Clearly this is a great “problem” to have. And, I admit, every time I get this question, it gratifies me to know I’m doing my job: Helping my readers make a bundle investing in tech.
Yet, it’s completely understandable why many investors, not use to making so much money and experiencing the thrill of victory, suddenly freeze when facing the daunting prospect of ‘what to do next.’
The last thing you want to see is your gains skyrocket past 100%, and then watch your profits dwindle as the stock recedes.
That’s why today, I’m going to show you one simple strategy that can ensure this never happens to you.
It’s a strategy I follow to a T every time I double my money.
And it’s incredibly easy.
In fact, this single strategy accomplishes something absolutely critical for your future investing success: It removes risk… while still giving you the chance for infinite upside.
Let me show you how this incredibly powerful – yet amazingly simple – strategy works…and how you can start using it for massive gains right away.
We’ve shared quite a journey over the past several months.
We’ve talked a great deal about how most Americans have saved less than $25,000 – meaning they have virtually no net worth and can’t really hope to retire.
But we’ve also seen how well-chosen investments in the fastest-growing parts of the bio- and digital technology sectors can help you make up for lost time – hence our mantra that “the road to wealth is paved by tech.”
And we’ve even shared the five-part strategy I use to spotlight the most promising profit plays.
To succeed with all this, of course, we need to identify tech stocks that have a good chance of doubling in price.
Several of the stocks we’ve recommended are already well on their way.
But one of my most recent recommendations has me especially stoked.
In a minute – after I share my latest updates on this particular stock – you’ll feel the same way.
If you’ve followed along with me over the last few months you know I’m a big believer in U.S. technology.
But I’ll go anywhere in search of profits for you.
So if there’s a foreign firm that offers us a chance to diversify our holdings — and make a killing in the process – you can bet that I’ll tell you about it.
In fact, that’s just what I’ve found – a non-U.S. firm that’s actually one of the world’s most-successful e-commerce plays.
The company’s name is Spanish for “free market.”
But the folks who truly understand the company’s potential have dubbed it the “eBay of Latin America.”
It’s a company that targets some of the hottest sectors in technology.
And its growth potential is immense.
But the company isn’t a household name.
So you can fly under the radar – but still have a pretty good shot at doubling your money on this well-run, high-tech leader.
Let me tell you all about it – and demonstrate how my five rules for generating wealth from tech stocks helped me find it.
There’s an old joke out here in the Silicon Valley region that says you can always spot a tech-market pioneer.
Just look for the guy with the arrows in his back.
It’s a funny line, to be sure. But it makes a great point: It’s not enough to be “first” with a new technology … there also has to be a market to sell to. Any innovator – be it an individual inventor or a big corporation – that reaches a market too early and alone could end up being savaged by the wild frontier.
That’s not an issue with InvenSense Inc. (NYSE: INVN), a Sunnyvale, Calif.-based sensors firm that we talked about here back on May 17.
InvenSense, I told you, is a market pioneer. And it’s also a terrific way to play the zooming surge in mobile technology – and for a very simple reason: The company’s timing was spot-on. InvenSense developed the right products for the right market at precisely the right time.
It’s a pretty basic formula. But it’s also very powerful. Indeed, InvenSense’s market-leading technology is a key reason I said there’s a good chance these shares could double in less than three years.
That wasn’t hype: InvenSense has soared almost 40% in the 10 weeks since I introduced you to this stock, which is why I’ve been forced to alter my outlook for the company’s share price.
And that’s just for starters.
Obviously I now believe that this stock could double in a much-shorter time period.
But that isn’t the biggest change to my forecast.
You see, I also now see a much, much greater possible upside for INVN shares – and a much-bigger potential profit for InvenSense shareholders.
All because of something that happened last Wednesday …
I invested countless hours and thousands of dollars putting together a state-of-the art home theater at our house here in Silicon Valley.
It’s so good, in fact, that family members and friends tell my wife and me that it’s actually better than going out to the movies.
Just last year, I upgraded the theater space with a new 60-inch plasma technology high-definition TV (HDTV). Watching Blu-ray DVDs on this monitor makes the movies we watch seem so realistic that you duck during explosions and want to reach out and touch the actors that are right there before you.
So, imagine my frustration when I recently learned that the largest and most expensive “appliance” in my home is about to become obsolete.
And the odds are pretty doggone good that you’re facing the same dour realization …
But the news isn’t all bad.
With every change, you see, come new opportunities.
And today I’m going to tell you about a great one – small-cap firm that offers us a killer way to profit from the $3 billion shift to this new type of high-tech TV set …