Archive for October, 2013
In the July 26 Strategic Tech Investor, we explained why we believed that search-giant Google Inc. (NasdaqGS: GOOG) was a “must-own” stock.
Using the five rules we created to identify the biggest-potential stocks, we told you how the Mountain View, Calif.-based tech innovator was continuing to position itself as a company that will continue to create wealth for its stockholders.
Not long after, several folks wrote in to say that Google’s $885 share price made the stock too pricey for them to own.
We countered with the same response we always make to such comments: On a given amount of cash, a 30%, 50% or 80% return will net the same profit – no matter if that cash is invested in a $50 stock or a $550 stock.
And, with Google, we’re already on our way: The share price has already advanced 15%, meaning that $885 stock is already trading north of $1,000 a share, and closed Monday at $1,015.
Sometimes, you’ll find, the stocks that appear the most expensive actually turn out to be the cheapest at the time you buy them.
That got us thinking … and prompted us to ask this question: What other companies are destined to join the “Thousand-Dollar Club?”
It was early 1981 and the so-called “Big Three” U.S. automakers were all on their backs. Chrysler Corp. barely dodged bankruptcy – thanks, in part, to $1.5 billion in federal loan guarantees, and Ford Motor Co. would incur $3 billion in losses during a four-year run that ended in 1982.
Chrysler, General Motors Co. and Ford were getting their clocks cleaned – by Japan.
Knowing that California, as a trend-setter state, would be a good place to assess how the U.S. carmakers were faring against the Japanese small-car juggernaut, my newspaper had sent me out from Detroit to assess the outlook for America’s once-dominant Big Three.
From the time I landed at Los Angeles International Airport (LAX) it didn’t look good. The number of imports I counted in the LAX parking lot was dwarfed by the number I saw on the LA freeways.
And in a stunning bit of candor, California Gov. Jerry Brown told me that the future looked bleak for Detroit.
As we all know, the Big Three ultimately beat back the Japanese threat, and weathered several lean periods that followed.
Then came the financial crisis of 2008-2009, and the “Great Recession” that followed. Two members of the Big Three followed the example set by the nation’s biggest banks and accepted government bailout handouts.
One automaker did not.
That company opted to go it alone. It has transformed itself into a high-tech powerhouse, is grabbing market share back from the top Japanese nameplates in their “home market” of California, and just this week unveiled a superb quarterly earnings report and boosted its forecast for 2013.
This company’s stock is up 72% over the past year, but don’t let that scare you off.
The share price of this surprisingly high-tech (and suddenly very cool) company could easily double from here …
The sci-fi flick “Gravity” is tearing it up at the box office.
The film, which stars Sandra Bullock and George Clooney, tells the tale of a “routine” space shuttle mission gone wrong, grossed $55.8 million for its weekend release earlier this month. Reviews have been stellar. Oscar talk has already started.
Audiences are saying that the amazing special effects – known as “F/X” in the movie biz – are a key reason they dig this film so much.
And critics are saying it’s the amazing digital sound effects that make the movie seem so realistic and that could lead to an Academy Award nomination for “Gravity’s” audio quality.
But here’s what I want to tell you – and it’s something that moviegoers and critics know nothing about.
There’s a great way for tech investors to cash in on this revolutionary audio technology. It’s a company I know very well.
In fact, it’s a stock that could easily double your money.
I have such an intense enthusiasm for Apple Inc. (NasdaqGS: AAPL), that my collection of the company’s products sounds a lot like the lyrics of a famous Christmas song: Five iPhones, four wireless routers, three MacBooks, two Apple TVs and one pair of iPads.
And while my love for the company’s products is great, and would certainly be a factor, I can assure you that my analysis of the profit potential posed by Apple’s stock will be like any other recommendation I make – completely objective.
But with a polarizing “cult” stock like Apple, that’s clearly not a claim that every analyst can make. You see, when I compare the current bull and bear stock-price predictions for Apple, I feel as if I’m reading about two completely different companies.
With Apple, it seems, there’s no middle ground.
This intense disagreement is actually one of the factors that have been holding down Apple’s share price. Coming, as it does, on such a high-profile stock, the tug-of-war between the opposing camps plays out in the headlines each day. And it’s causing so much confusion – and outright frustration – that most potential Apple investors are sticking to the sidelines, and are choosing to ignore the stock altogether.
That’s unfortunate … because this stock is actually one of the most intriguing profit plays that I see right now – a big-name brand in turnaround mode, and a tech stock that poses less-than-average risk.
And as profit opportunities go, this is a big one.
I see two major catalysts here that are perfectly positioned to drive the stock higher.
Indeed, this has the double-your-money profit potential that we target for you here at the Strategic Tech Investor.
And when this stock rallies, the folks who listened to the bears will realize they’d been suckered.
And we don’t want you to be part of the crowd that misses this trip.
No matter how the current debt-ceiling debacle plays out on Capitol Hill, one thing is clear: We need to protect ourselves from Washington.
Unfortunately, just taking steps to protect ourselves isn’t enough.
You see, we also need to send a message – to let the “Inside the Beltway” crowd know that we’re less-than-thrilled with the brand of “leadership” that they’re providing.
Fortunately, there’s one single move that will fulfill both of these objectives.
It will provide you with some protection against Washington’s malfeasance.
And it will tell the Capitol Hill fraternity that their lack of concern about Main Street Americans is no longer acceptable.
I like to refer to this as “Beltway Bandit Insurance.”
And if you execute it correctly, this insurance strategy will pay off by fattening your tech portfolio.
It’s destined to be one of the biggest IPOs in U.S. tech history.
And with good reason.
This company has only been around for six years, but its social-messaging technology is already an indispensable part of everyday life.
The messages are “tweets.”
And the company is Twitter Inc.
The stock offering is expected to raise $1 billion when it takes place – perhaps as early as this month. But retail investors will have a really tough time getting a piece of the deal.
But don’t let that get you down.
You see, I’ve uncovered a “backdoor” way to play the Twitter IPO – and this investment has absolutely dwarfed the stock-market return of the past year.
If you’ve been joining our twice-a-week get-togethers for some time now, you’ve learned that I’m a focused and disciplined investor – and know that I ignore fads and refuse to chase “hot tips.”
I’m also very price sensitive: Although I’m hunting for stocks capable of delivering “moon-shot” price gains, I won’t pay a penny more than my charts or “black box” system tells me they’re worth.
To enforce that discipline – and to help pass along to you all that I’ve learned through the years – I developed the set of five rules that we talk about here each week.
But one of my best tools is also one of my simplest. It’s a roster of companies whose stocks I’d someday like to own, but that don’t currently meet my stringent criteria.
I call it my “Watch List.”
And through the years, this simple shopping list for stocks has ended up delivering some of my all-time-biggest winners.
And wait ’til you see my next winner – the “Watch List” stock with stratospheric profit potential that my system just upgraded to “Strong Buy.”
As many of you know from our past chats, sailing is one of my real life passions.
And living out here in the San Francisco Bay Area, I was thrilled to get to see some of the just-concluded America’s Cup competition, which was one for the ages.
In fact, Yachting World‘s David Glenn called it “a comeback story of unbelievable proportions.”
Down a stunning eight races to one, and facing elimination, the U.S. entry known as Team Oracle refused to accept defeat – and won eight straight races to take yachting’s most prestigious prize.
I found myself thinking about Team Oracle’s miracle rebound yesterday for one very good reason: It reminded me of another comeback saga – a turnaround involving a tiny-and-troubled robotics company whose “we-won’t-quit” attitude has thrust it back toward the top of the heap.
But the best part of the story is still to be told.
And that means that this $7 tech stock still has plenty of room to run …
“Dear Michael: I subscribe to your Strategic Tech Investor newsletter, and am a big believer in your message that investing in technology stocks is the single-best way to build up my savings and secure my future. And I want to do this – very much, in fact. But I don’t have a lot of money to get started. Can you help me?”
Hearing from you folks – and knowing that this Strategic Tech Investor project is making a difference – is an incredibly gratifying part of my work here at Money Map Press.
Each week, I get dozens of comments, suggestions and encouraging testimonials.
I also get loads of questions.
But there’s one specific question I receive that dwarfs all others in terms of its frequency, and that affects me more profoundly.
It’s the question that starts today’s column.
And today I’m going to give you the most-complete answer possible.
Indeed, I’m going to show you a strategy that will allow you to invest in the top tech companies – and invest in the key explosive growth trends – that we talk about here each week.
If you commit to this plan, and follow it diligently, years from now you’ll look back on Oct. 1, 2013 as the day that changed your life …