SPECIAL INSIDE GLIMPSE OF CALLUM NEWMAN’S LATEST EDITION OF SMALL CAP ALPHA…
Get ready for 2019’s
The biggest global communication network rollout in history is about to begin in Australia…
Previous rollouts of wireless mobile networks led to stock gains of 2,438% and 1,980%.
Well, read on…because the potential gains could be even bigger this time.
You’re about to enter the bizarre world of a psychotic.
Someone suffering a psychotic episode can’t tell what’s real from what isn’t.
That’s why an empty room can provoke sheer terror. They might be seeing a demon in the mirror!
The Healthtalk organisation publishes thousands of psychotic experiences online.
These are not limited to visions. Psychotics can sometimes hear voices coming from animals and all other sort of other things.
This is exactly what’s coming to your everyday life.
I’m sure you’ve heard about the coming fifth generation mobile network — or 5G — rollout
You might have heard about the incredibly fast download speeds 5G allows, the low latency, and the awesome streaming power.
But nobody’s talking about the obscure effects that 5G networks will have on our lives.
These psychotic-like symptoms will affect users as soon as 5G phones start hitting the market in 2019.
Yes, after only a few months from being exposed to 5G, you may start hearing voices from your pets, your fridge, your sofa, your electric shaver or any other object.
No, I’m not telling this to scare you in any way…or freak you out.
It’s actually incredibly exciting…and potentially lucrative.
That’s why I’m focussing this issue on this story…to bring it your full attention because of the astonishing investment opportunity that surrounds it.
That’s because people will soon talk to ‘things’…
And far from being the catalyst for a stay in the looney bin, it will soon be something you and all your friends, family and colleagues will be doing on a daily basis.
But that’s only the beginning…
Pets will talk to people...body parts will talk to other body parts...otherwise mundane objects will talk to other objects.
This is literally insane.
At least, it seems that way right now.
But 5G will enable it all.
Imagine a world where everyone is psychotic.
Or should I say…
Where every THING is psychotic.
Just this month, Amazon announced a new hardware product.
It’s a microwave that can listen to your voice commands. The microwave wirelessly connects to Amazon’s virtual assistant, Alexa.
Alexa can already interact through voice, play music, set your alarm and update you on the news, sport and weather.
Now, you can tell her to cook your potatoes the way you like them.
Wired just quoted Amazon’s senior vice president of devices as saying, ‘Just think, one day there will be thousands of these things in the home.’
We can add your office, gym and anywhere else you care to look.
LG is rolling out Google Assistant, which will have your TV talking to you.
You’ll be able to change channels, check the weather and even organise your weekly shopping – without moving off the couch.
And goodbye to hunting around the room looking for your remote control!
There could be 300 million smart speakers like Alexa sold by 2022.
Also coming are smart thermostats, baby monitors, security systems…and the list goes on.
Billions of small, connected sensors are going to get rolled out everywhere. Parking spots will know when cars enter and leave.
Farmers will know exactly how much fertiliser their plants need. Insurers might even know how close your car is to breaking down.
The applications are endless.
This is not a new idea.
But the impending rollout of 5G networks worldwide happening now is going to finally usher in the long-awaited and talked about Internet of Things (IoT) reality.
This is where all devices and things are connected to the internet, communicating and sharing data.
This is what can make self-driving cars a reality…amongst many other things.
Bloomberg expects it to usher in automated manufacturing, remote surgery, driverless cars and traffic control.
Vodafone in the UK just demonstrated a holographic phone call. A young football fan chatted with a player in front of a live audience — despite the two having the conversation being physically 190 miles apart!
5G is going to spark huge opportunities in the investment markets as a result.
This is big — you can think of it as the fourth industrial revolution.
The first three had a core technology that drove innovation, adoption and incredible wealth creation.
Those were steam power, electricity and the original arrival of the internet.
This time will be no different.
A colleague of mine, Brett Aitken, wrote recently in a Stansberry Innovations research report, ‘5G will be so big and so powerful, it will singlehandedly drive all other technologies over the next several decades.’
In September, The Australian quoted Telstra’s head of mobiles Kevin Teoh.
He said, ‘We expect the implementation of 5G technology will facilitate applications and usage for mobile handsets that have not yet been imagined.’
ZDNet says it’s going to ‘…replace the future’.
The Financial Times calls it ‘…a game changer for humanity’.
And MIT Technology Review calls it ‘…the next technological revolution’ and a ‘…paradigm shift, akin to the shift from the typewriter to the computer’.
Read on for why we’re entering the most exciting period of human history…
5G isn’t just a network.
It’s going to be an entire ecosystem of fully connected sensors and devices.
It promises to overhaul the way you travel, communicate and do business…blurring geographical and cultural borders.
Already, the world’s biggest and richest companies are investing billions into this emerging tech.
You need to be on this trend too.
Look at how powerful the previous generations of mobile technology were for early investors…
Getting in on Nokia ahead of the 2G roll out in the 1990s could have made investors more than 20 TIMES their money...
Original Chart Source: Optuma
Or getting in on Apple ahead of the 3G and 4G roll outs in the mid and late 2000s.
Apple’s ‘app’ ecosystem and iPhone sales were only made possible through the 3G and 4G advancements over the original primitive rollout of 1G and 2G tech.
Apple is now up 1980% over the last 12 years. That return doesn’t even include the dividends it’s paid out too…
Original Chart Source: Optuma
There’s no question…
With each new network evolution, there are always companies that benefit the most.
In my view, it’ll be no different this time.
Consider that the current 4G technology is worth an estimated US$6 trillion in revenue.
One research firm suggests 5G will at least double this figure and create 22 million jobs around the globe.
Worldwide, there’s going to be US$200 billion in capital spending to build global 5G networks for the next 7 years, at least.
Life is unlikely to be the same ever again.
5G is going to enable a myriad of powerful applications…
It’s also for this reason that national governments around the world are incredibly reluctant to allow foreign firms access to their home market development.
Australia is a case in point.
In August, the Australian federal government banned two Chinese firms, Huawei and ZTE, from providing equipment to support the 5G network build out across the country.
These are the same two companies that the US Federal Communications Commission voted in April to ban from receiving US federal funds for their networking equipment.
Western governments are afraid anything otherwise could provide a backdoor way for Chinese spying.
One report in the Australian Financial Review in February said US intelligence officials were so concerned that they considered nationalising their 5G network to prevent Chinese firms from providing any equipment at all.
In March, the Trump administration blocked the acquisition of chip giant Qualcomm over fears that it would allow the Chinese to pull ahead in the 5G race.
The coming uplift from the 5G rollout is so huge, you can see why…
5G is going to allow the world to send massive amounts of data at incredibly fast speeds. The download speeds are going to be 10 to 100 times faster than 4G.
And the world gets more data-hungry by the day.
See for yourself…
This is not going to slow down anytime soon…
Finnish wireless network player Ericsson expects there to be 1 billion 5G subscriptions globally by 2023, and for data use to intensify as augment reality (AR) and virtual reality (VR) become more widely adopted.
Firms in the telecommunication industry are now racing to get ahead…
In the United States, communications giant AT&T announced in September it will have 5G services in 19 American cities by the end of 2018.
Verizon is launching its 5G network this year too, in the USA.
The third and fourth largest wireless carriers in the USA are now under a proposed US$26 billion merger, aiming to unite their financial strength to construct a rival network.
We’re seeing exactly the same thing here in Australia.
TPG Telecom and Vodafone Hutchison Australia will create the third biggest telco operator in the market here once their $15 billion merger is complete.
David Teoh is the billionaire boss of TPG Telecom. His personal stake in TPG is 35%. That percentage will drop to 17% if the merger goes ahead.
Why is he prepared to concede ground? The Australian cites him as saying the new firm will be best placed to compete in the ultra-fast 5G market.
We have to be watching this space…
The first 5G handsets are not due to arrive until at least 2019, and the bulk even later in 2020.
The network construction, spectrum allocation and testing for 5G are still happening now.
My colleague, Jeff Brown, is a US technology expert with 25 years’ experience across the industry.
He says the logical progression to expect from here is infrastructure first, devices second and services third.
That’s how we’ll play the investment trend, too.
In that sense, this month’s Small Cap Alpha issue is another ‘Special Opportunity’ report.
The arrival of the 5G network is too big to confine ourselves to the Aussie small cap sector…although we do have one way to play this at the bottom-end of the market.
However, I want to bring you multiple ways to play this massive trend.
Think of it as a specific campaign.
This newsletter is called Small Cap Alpha.
Up to now, we’ve focussed on the ‘small cap’ part. That’s small companies with a market cap usually under $500 million.
But the ‘alpha’ applies to anything that could give you a market-beating return.
And that can involve larger caps in the right place and at the right time. That’s what we have here…
And why not?
There are many investment ideas that you can potentially profit from. I’ve shared some of these with you in the preceding months.
My July 2017 Amazon Jackpot report mentioned US technology firm NVIDIA Corporation [NASDAQ:NVDA]. It was around US$165 then. It’s now over $US260.
We’re shooting for something similar this month.
Today, I have three recommendations for you.
Two large companies, and a speculative small cap.
The two larger stocks will come as a surprise.
I’m sure they will trigger tons of mail.
Because both of them are rising from a troubled past that’s left them hated and misunderstood.
But the sheer scale and money that 5G networks require mean only a limited number of companies are in a position to capitalise on it as of now…
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I look forward to sending you my full research.
Editor, Small Cap Alpha