Kris’ note: Your editor has been in the investment industry for nearly 25 years. Over that time, one of the most common things we’ve seen from investors is the tendency to make “yesterday’s trade.”
That is, having missed out on the beginning of a huge trend, they’ll try to make up for it by buying the biggest company in that trend now… and expecting the same gains as if they had bought at the beginning of the trend.
Look, that doesn’t mean you shouldn’t buy those big stocks. Often, they’re market leaders, they have the biggest sales, and they generate the biggest profits. Some even pay a nice dividend.
But the best thing to do… if you missed the last big trend… isn’t to make up for it by buying the biggest stocks in that old trend. It’s buying the small and relatively little-known companies today that could be tomorrow’s biggest stocks.
The biggest problem with that, of course, is knowing what that trend is and which stocks within that trend to buy. It’s not always easy. Fortunately, today’s guest is leading tech expert Jeff Brown… and he has the solution for that problem. Not only has he identified the big picture trend, but he has identified the specific stocks to play that trend. You can join his briefing Wednesday at 8 p.m. ET by reserving your spot here.
For more details, read on below…
By Jeff Brown, editor, The Bleeding Edge
Since the arrival of the original iPhone, investors have had the chance to profit more than 4,500% on Apple’s stock (AAPL). So it’s natural that some investors think the best way to profit from Apple’s success is to simply buy AAPL and watch it rise.
But Apple already sits at a more than $2.5 trillion market cap… and it’s trading at all-time high valuations. At an enterprise value (EV)/sales ratio of 7.2, Apple’s current price is equivalent to over seven years of sales (not profits). That’s the highest valuation that Apple has ever had in its own history.
And we should keep in mind that Apple is primarily a hardware company. More than 80% of its revenue comes from selling lower-gross margin hardware products like the iPhone, iMac, and wearables like the Apple Watch and its popular AirPods.
Apple is one of my all-time favorite tech companies, but at an “expensive” valuation like this, we’re unlikely to double, triple, or 5X our money simply by buying shares of AAPL…
So how can investors position themselves to make life-changing gains from Apple’s success?
Apple’s Ripple Effects
When looking at a company like Apple, it’s important to keep the big picture in mind.
Ultimately, investing in Apple is not the only way to gain exposure to the revolutionary trends that its products – like the iPhone – have unlocked. In fact, there are much better ways to find explosive gains.
So where do we find those opportunities?
Consider a brief history of Apple’s iconic device. Ever since the first iPhone arrived, it has had ripple effects throughout many different industries. Here are just a few examples of the iPhone’s extraordinary influence…
Personal Computers: Prior to the iPhone’s release, around 400 million PCs were sold each year. Contrast that with 2020, in which only 275 million were sold. Why buy a PC when we now carry a pocket-sized computer with us everywhere?
Telecom Providers: The iPhone provided the push for telecom companies like AT&T and Verizon to switch from landline voice delivery methods to digital networks. Their business models have been completely transformed into conduits for digital data.
Entertainment: Can you remember the days when a movie theater or a VCR player was the only way to watch a film? The iPhone developed a mobile platform for watching videos on the go, prodding studios and cable companies to adapt to the new distribution methods. It cleared a space for new innovative companies like Netflix, Hulu, and YouTube to thrive.
These are three simple examples, but they illustrate the power Apple has to influence global industries. In short, the iPhone’s incredible success has often had “knock-on” effects for other technology products and services.
And that’s where we find our opportunity…
An Entire Ecosystem
Earlier this summer, Apple asked its iPhone suppliers – the companies who provide the components that go into the phone – to increase their production by 20% this year. That’s a huge bump. We’re not talking a few percentage points here – 20% is a major increase.
And that’s why Apple’s suppliers can offer investors a great opportunity to profit. As Apple’s request shows, the more successful Apple’s products are… the more demand its manufacturers receive.
This has been especially critical due to the release of Apple’s 5G-enabled iPhone last year. 5G phones require more hardware than previous generations, especially since they still need to be backwards compatible with 4G networks while nationwide 5G spreads.
More hardware means more specialized semiconductors… radiofrequency filters… and sensors… which means more profits for the companies that produce these essential components.
And as many of these companies are currently smaller than Apple, they can still have the chance to double… triple… or more.
In summary, there is an entire ecosystem of companies that benefits from Apple’s existence. And many of them offer far greater opportunities for you to make a small fortune than most investors realize.
And that’s why the news I have to share is so exciting…
Apple’s Big Launch
I’m racing against the clock right now to get this information to readers…
You see, Apple just made a big announcement… a launch that most people don’t yet realize could lead to $12.3 trillion up for grabs in the Apple ecosystem as it rolls out.
Already, I’ve seen investors such as Warren Buffett, Elon Musk, Bill Gates, and Mark Cuban positioning themselves for what’s coming… and I don’t want any of my readers to miss out on this opportunity to invest alongside the big money.
That’s why I’m preparing a presentation to share all of the details with investors. It’ll happen on Wednesday, September 22 at 8 p.m. ET… and to attend, all you need to do is reserve your spot.
I’d like to ask all of my readers to go right here to sign up to attend.
Because this opportunity could be explosive. Soon, this could be front-page news on The Wall Street Journal and the Financial Times. But at this event, I’ll make sure all my readers have the chance to get the scoop on how to profit from Apple’s next big move…
Editor, The Bleeding Edge