News Details – Smallcapnetwork
Advance Notice: New 'Recurring Revenue' Idea Coming Monday
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February 2, 2024

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PDT

Happy Saturday everyone. I know it's been a very long time since you heard from me on a Saturday (July 2nd, to be exact), so the fact that you're reading this now - today - should suggest to you something noteworthy is going on. Well, as it turns out, there is. I'll tell you about it in a second. First I want to ask you.... how 'bout that AtheroNova (AHRO)? It's up a whopping 45% since we told you all about it before Thursday's open. Nice. Hope you were in. Anyway, like I told you on Tuesday, AtheroNova was just the first of three Featured Stocks we were going to be unveiling back to back to back. The second one of the trio is going to be introduced to you on Monday, BEFORE the open. As it stands right now, the third one is going to be launched on Tuesday morning. I've got a feeling the next two are going to yield trading results similar to AtheroNova's, so be sure to check your inbox. Of the three though, Monday's stock is the most 'no-brainer' of the group for one simple reason... it's got a history of rising revenue built around a brilliant business model. Remember the point I made to you about Warren Buffett in Tuesday's newsletter? The world was a little shocked that he bought $10 billion worth of IBM - a stock from the technology sector, which he has made a point of avoiding his whole life. I wasn't a bit shocked though, because IBM isn't really a 'tech stock' in the traditional sense of the term. It's a 'services' stock for corporate world. In the same sense that you and I buy consumer staples like groceries and soap month in and month out because we have to, businesses buy IBM's consulting and support services month in and month out because they (basically) have to. I can sum the beauty of it up in two words: recurring revenue. With a recurring revenue model, the sales effort happens once, but the income flows in perpetuity. That's how IBM has managed to increase yoy earnings every quarter since 2003.... it just kept adding new customers while continuing to collect from the old ones. I can't tell you the name of Monday's new Featured Stock now, but I can tell you it's following the same recurring-revenue model that made IBM so great. The big difference between it and IBM is that this so-far-unnamed company is building its business in what's becoming one of the hottest growth arenas out there - digital advertising. The dollars spent on digital advertising are expected to double between 2010 and 2015, and this company is positioned for that mega-trend better than any other company I can find. Frankly, I'm shocked this company's shares are still available at their current trading levels given the underlying story, but I'm not gonna' complain. Be sure to check your inbox Monday morning for this new name.