When I was 22 years old, I got my first “real job” as a Stock Broker Assistant. I was pretty excited when that opportunity came around. I felt like I would finally have the inside track to a pool of knowledge that was kept from the mainstream.
I soon learned that uncertainty was the only certainty when it came to investing in stocks. For three years, I sat and listened to promises made on the phone of a stock that was certain to shoot up and lead to financial freedom for all those who invested.
The “ten-bagger” was usually the dream. There have been 100-baggers over the years but I never saw one. A ten-bagger though? If you could suggest a stock that increased your client’s wealth 10-fold, you had a client for life. Such an investor would typically start trusting you to invest all his money and that usually led to a very profitable month.. for the stock broker.
Unfortunately, those ten-bagger stocks were few and far between and most investors simply learned the one lesson I still carry with me today about the stock market – over-performing companies will soon under-perform and under-performing companies will eventually over-perform – if they don’t run out of cash.
Your best “bet” for finding a hot stock is finding a company that is under-performing while having a lot of cash on hand. They eventually come around but you have to jump in for the long haul because their timetable for profit might be a few years longer than you are hoping for.
I like proven companies where there is little risk. The recent stock split by Apple was enticing enough to make me jump on board with a company that expects a record number of sales this fall. Apple’s a proven winner and they are a highly profitable company that handles their business well. The stock’s already up $3 in the last month. I fully expect that trend to continue.
I also like the idea of a taking on a little more risk for a little more reward and I’ve got my eye on a stock that you might want to watch. Understanding that my market insight has given me no advantage in determining which stock is going to pop, I’m going to give you my “pick of the pack” and then we’ll watch and see what happens. Is this my ten-bagger?
Here’s the get-rich stock tip you’ve been waiting for. Buy GT Advanced Technologies Inc. (NASD: GTAT).
GTAT is the company that will be building the new sapphire screens for Apple’s upcoming iPhone – and we might even see the display on the new iWatch. Of course, that’s all just speculation at this point and that’s why the stock is priced so nicely right now, at under $15 a share.
But here’s the thing…
In reviewing what we know about Apple and GT Advanced Technologies, this looks much less like speculation and far more like plain ol’ unannounced news.
Apple purchased a new glass facility for GTAT in 2013 for $113 million and they’ve given $578 million in payments to GTAT for sapphire production. Apple has also committed to creating 700 full time jobs (for at least a five-year span) and they’re expected to invest $1.5 billion in the GTAT project.
It seems a pretty logically-safe bet that GTAT will be producing sapphire screens for Apple iPhones and the tech world is certain that the new iWatch is just around the corner. Sapphire screens, maybe?
Why The Low Stock Price?
Apple loves secrecy and to their credit, they’re pretty good at it. The role that GTAT will be playing in Apple’s production has yet to be completely disclosed but there is a signed agreement between Apple and GTAT and GTAT has admitted that Apple is providing the furnaces for new sapphire production. Still, the shroud of secrecy is enough to scare off many investors for now as they wait to hear more details.
There’s also the fear of a yield problem. Sapphire is an incredibly expensive material to create and many fear that there simply isn’t a large enough supply to outfit all the new iPhones coming – an estimated 70 to 80 million units by the end of December, 2014.
Is it possible that sapphire is being combined with other material to make a more durable screen? The “leaked video” at the top of this page suggests that this is the case.
Who is GTAT?
GT Advanced Technologies isn’t just a sapphire manufacturer. The company also deals with the manufacturing of solar equipment.
The demand for solar equipment is on the rise and that creates a growing demand for GTAT services. The company has a HiCz technology that is said to increase cell efficiency by 25%. Such a dramatic improvement to solar technology has the potential to completely shift solar manufacturing as we know it today.
It is clear that sapphire production makes up the bulk of GTAT profit but this is good news when you consider that techonology is the only thing keeping sapphire from being the “go to glass” in many products. It’s one of the world’s most scratch-resistant materials (a 9 on the Mohs scale and second only to diamonds) and it’s highly transparent and tough. It’s also a highly-thermal conductor, making it an excellent material for future electronic projects.
Is it possible that GTAT has created a new sapphire manufacturing technology? It’s what they do, after all – and Apple seemingly wouldn’t be investing billions in a company without a very good reason to do so.
If GTAT has solved the supply and demand barrier of sapphire with a new technology, you can fully expect others to follow suit. Phone companies will likely all start using sapphire in an attempt to compete – and the material will become more commonly used in many places.
I feel confident that GTAT is headed in the right direction to turn some very large profits in the future. GTAT stock has every chance of going north when the iPhone 6 (assuming this is the new name) is released. If the increase isn’t immediate, stay on board for the long haul. GTAT is one of those stocks we may all look back on one day, wishing we had jumped on board when it was less than $15 a share.
In many ways, this might be like grabbing a share of Apple when Apple was still the new kid on the block.
I feel certain that GTAT is a superb buy.. but keep in mind that my certainty is amid the uncertain world that is the stock market.
Still.. I’m long on GTAT.