Masters Series: This Is Where 5,000% Winners Come From
Editor's note: While some people have a negative perception of the word "speculation," the truth is that skilled speculators can turn the stock market into a cash register.
That's why we're thrilled to announce that we recently struck a deal with Paul Mampilly, a master speculator who specializes in analyzing growth stocks.
Paul has developed a proprietary method for making money in the stock market that he has used to find big winners. And he's using that method today to make Professional Speculator subscribers huge gains in the market.
Today's edition of our weekend Masters Series originally appeared in the Professional Speculator Owner's Manual. In it, he shares some of his biggest winners... and explains where great speculations are born...
This Is Where 5,000% Winners Come From
By Paul Mampilly, editor, Professional Speculator
Over my 25-year career, I've traded all types of asset classes.
I've traded currencies, commodities, bonds, options, stocks, and some financial instruments you've never even heard of.
But I've found that technological innovation is the most consistent source of huge winning trades in the markets.
In 2002, I was an elite analyst for a multibillion-dollar asset-management company. I recommended a tiny biotech company called Gilead which was selling for about $4 a share. The company had struggled to get its first major drug, Tamiflu, approved by the FDA. And even when it succeeded, investors were nervous that the drug wasn't selling. (People weren't used to the idea of a prescription drug for the flu.)
Tamiflu eventually became a huge seller... governments around the world began stockpiling it as a counter measure to a flu epidemic. But I saw that the real value of Gilead was in the pipeline of anti-viral drugs it was developing... a pipeline that included huge future blockbusters like Viread and Truvada. Today, Gilead sells for $105, or 2,525% higher. Every $1,000 invested in Gilead in 2002 is now worth more than $26,000.
Another innovator that was once considered high-risk is Cerner, a company that makes hospital computer systems. In 1996, the United States passed the Health Insurance Portability and Accountability Act of 1996 (HIPAA). The law required that medical records be confidential, secure, and portable. And that meant they had to be digitalized. Hospitals were forced to spend huge sums to meet the requirements of HIPAA. And Cerner could meet their needs. Today, just about every hospital in the country uses Cerner's systems for everything from administration to medical records.
But in 2002, when I was looking at Cerner, it was a young growth company with a stock market value in the hundreds of millions of dollars. Its growth was already enormous, but the stock was hugely volatile. It was trading for about $5. Today, Cerner is valued at nearly $24 billion, and its stock trades for $75. That's a 1,400% gain. Every $1,000 invested in Cerner in 2002 is now worth $15,000.
Or take Illumina... This stock market superstar makes the most widely used systems for DNA analysis and sequencing. Go inside any lab in the world and you're likely to find a ton of Illumina machines... machines that have helped scientists create incredible new drugs.
But back in 2003, when Illumina was just beginning to release its systems, it was considered too speculative for most investors. You could have picked it up for about $2. Today, a share of Illumina costs nearly $200. Every $1,000 investment in Illumina in 2003 is now worth $100,000.
In August 2004, search engine mammoth Google was also considered an incredibly dangerous stock. Financial media warned people to not buy the initial public offering. Google had no real sales or even a business model when it went public. But it became one of the greatest investments of all time. I bought the Google initial public offering for about $50 a share. I put 25% of every dollar I had into it. Those same shares trade for about $550. It has gone up 1,051%.
How did I know to buy it? I used Google all day, every day to research stocks. Google made it easy to find anything I wanted to know. People all over the world were beginning to use the search engine every day. What used to take months or weeks or days could now could be done in a few minutes. I would have gladly paid hundreds and even thousands of dollars for the speed, accuracy, and ease of using it.
Google decided to keep its service free and now makes billions through simple text-based advertising that shows up alongside your search results. It went from a $23 billion company to a $393 billion company in 11 years.
I could list 100 more success stories like these... but you get the idea. Great innovations can lead to great stock returns.
Regards,
Paul Mampilly
Editor's note: Since 2008, Paul has more than quadrupled his net worth... enough to retire at age 45... all through a simple secret he has developed. And now, for the first time ever, he has joined Stansberry Research to show subscribers how it works... and why it could make his readers multiple times their money on a single speculation right now.
Paul says this is one of the best speculations he has come across in 25 years of investing. This company has developed what could be the biggest medical breakthrough of the decade. He believes this stock could double over the next year... and turn every $5,000 invested into $135,000 over the next decade and beyond.
Plus, right now, we're offering a special charter offer... You can receive the Professional Speculator for life – all for the cost of a normal one-year subscription – just by buying today. Plus, you can try this service RISK-FREE for the next SIX months. Learn more about this opportunity here.