In the ever-evolving world of investment, James Altucher’s “Microcap Millionaire” presentation emerges as a beacon for those seeking exponential growth. Promising a staggering 1,000% gain, Altucher highlights five under-the-radar stocks poised to dominate sectors from AI to Bitcoin mining. This article delves into each opportunity, from Innodata’s AI-driven solutions to Bit Digital’s strategic pivot towards AI infrastructure, offering a glimpse into the potential for not just substantial returns, but a reshaping of the investment landscape. Join us as we explore these microcap “superstocks” set to soar in an unprecedented bull market.
Altucher is promoting his Microcap Millionaire service (the list price is $10,000, though I’m unsure of the most recent “special sale price” as the offer had already closed when I reviewed it—typically, it’s around $2,500). To attract interest, he’s offering a series of special reports covering five stocks that he claims have the potential for 1,000% gains.
He mentions that some of these microcap “superstocks” are trading at the steepest discounts in the last decade, which has led to a flood of questions within myself. I’ve been swamped with other work recently and had to sit through the entire presentation to pick up on some clues. While I still need to get a full report on each stock or a detailed personal analysis, I can at least identify the companies based on the hints provided and get you started with your own research.
This pitch comes from another “Summit presentation” by Paradigm Press, where Doug Hill interviews James Altucher, promoting the idea that the start of the Federal Reserve’s rate-cutting cycle will trigger a significant rally in small-cap stocks, which they refer to as “microcaps” or “super stocks.”
Altucher hints at five stocks that could rise by 1,000%, possibly within a year. They argue that this class of “superstocks” is set to experience its most significant bull market in 50 years.
These five stocks are covered in three special reports, the first of which is titled “The Second Wave: 3 Superstocks Leading the AI 2.0 Revolution.”
The concept is that the following big winners in AI will be those focused on software. Altucher suggests the most significant gains will come from companies exclusively concentrating on AI software applications. Each of these companies is worth roughly $500 million or less, and they are leveraging AI across various industries.
As for the first stock in this group, do any clues stand out?
Innodata (INOD) recently revealed an agreement with a “Mag 7” company, which they project will generate $44 million in annual revenue. The company achieved marginal profitability last year, reporting around $86 million in revenue. Currently valued at approximately $500 million, or $18 per share, it trades at about six times its sales and 150 times its expected earnings (note that only two analysts are covering it, so take these figures cautiously). If you’re interested, you can find their latest Investor Presentation here, highlighting good growth, improving margins, and a positive AI outlook.
That’s about all I know about this company.
However, these investments represent only a tiny portion of their overall portfolios.
This refers to Nano X Imaging (NNOX), which many may recall primarily due to a notable surge in its stock price in February when NVIDIA filed its first 13F. This filing reminded investors that NVIDIA has held a small stake in NNOX for quite some time, stemming from a previous partnership between the two companies. Although it’s a tiny business that isn’t currently experiencing significant revenue growth, it arguably benefits from its association with NVIDIA. You can find the latest business update here.
And what would you like for the third one?
My guess is Mitek (MITK).
Mitek initially focused on processing images for mobile check deposits and has since expanded into mobile ID verification for banks and similar organizations. They faced challenges in meeting their filing obligations and needed help submitting accurate financial reports for over a year, which put them in a difficult position with investors. However, they have finally addressed their accounting issues and are showing some growth again. Currently trading at 13 times forward earnings, it could be considered attractively priced, but the filing troubles over the past couple of years have made many investors cautious. Let’s hope they’ve resolved these issues.
What are your hints about the first being a 3D printing company?
This almost certainly refers to Nano Dimension (NNDM), which currently holds about $793 million in cash due to equity raises in 2020 and 2021. They are looking to use some of this money to acquire another previously favored company, Desktop Metal (DM), for approximately $180 million. If this acquisition goes through, the cash balance will decrease significantly, but revenue will increase substantially.
What about “Bitcoin’s #1 Superstock”?
This stock is Bit Digital (BTBT), a Bitcoin mining company that recently branded itself as “a sustainable platform for digital asset production and AI infrastructure.” They have accumulated a significant amount of Bitcoin and Ethereum from their mining efforts, indicating that their stock price may be influenced by the market performance of these cryptocurrencies (and they earn some yield from Ethereum).
Bit Digital aims to generate $100 million in AI-related revenue annually, which would effectively double its current AI operations. It plans to enhance its capabilities by expanding its mining fleet and leveraging its existing 2,000 NVIDIA GPUs housed in a data center in Iceland.
While I can’t provide a more in-depth analysis, but based on the clues given, above are my best guesses of five microcap stocks that James Altucher has been promoting in his recent advertisements. Please share your insights or analyses about these stocks in the comments below.
