Ian King’s No. 1 Stock (Fintech) – The “End of the Dow” Pitch

In his latest pitch, “The End of the Dow”, Ian King talks about a disruptive new technology that will eventually remove 90% of the Dow Jones Industrial Average companies, replacing them with start-ups and smaller companies in more diverse industries related to technology – think 5G, artificial intelligence, virtual reality, precision medicine, autonomous vehicles, and others. 

Our author goes on to pitch his investment newsletter, Automatic Fortunes for $47 per year. Included in the price, you will get an easy-to-follow model portfolio, 12 issues of the newsletter, daily tips, trade alerts, and six free reports, one of them being “How to Make a Fintech Fortune”, the one teased in this video presentation. In the same video, King promises to provide information about a “Fintech stock so revolutionary that it is one of the most disruptive stocks in the whole world”. If you decide to skip King’s investment newsletter, here is what we were able to find out for you, for free.

Ian King has over two decades of experience in the financial markets, having worked for one of Wall Street’s most prestigious companies, Salomon Brothers. He became a specialist in long/short equity hedge funds and also has over 10 years of experience as the head trader for Peahi Capital. King is the editor of Banyan Hill’s popular Crypto Profit Trader, a weekly investment column, and has appeared numerous times on Fox Business News, Investopedia, Seeking Alpha, Real Vision, and a host of other media outlets. 

He holds a psychology degree from Lafayette College and worked his way up on Wall Street, after starting out as a desk clerk at Salomon Brothers before moving on to credit derivatives at Citigroup. Back in 2017, King collaborated with Investopedia Academy to launch Crypto Trading, an online course that teaches investors how to profit from crypto asset volatility. He successfully predicted the economic crash of 2008 and is an avid promoter of new technology, advising his clients to invest in many of the latest emerging tech stocks.

The Revolutionary Opportunity 

In his latest marketing pitch, King talks about “a massive tech boom”, bigger than everything else we have experienced before. He claims that we are on the verge of a new world, expediated by the Coronavirus pandemic, which has created a new paradigm for how people work, live, and entertain themselves. 

As many companies invest heavily into new technologies, it is unlikely that we will return to our old habits, even after the pandemic is over. Over the next couple of years, we will experience a change in many aspects of our lives – working from home will become more common, telemedicine will slowly replace minor visits to the doctor, while video calls for business meetings will replace boardrooms full of people traveling from other corners of the world.

In King’s opinion, “the biggest gains are yet to be made”, which means that you can still get ahead of this tech boom and “see profits of up to 10,000% in less than 10 years” by smartly investing in the right stocks. 

He goes on to mention that his presentation will reveal three key things:

1. How to profit from this tech boom with his no.1 stock pick
2. Why Wall Street’s favorite stocks are destined to fall by 90% or more 
3. His secret for spotting tech stocks before they soar.

King calls this secret “the innovation breakout curve”, and the key is to invest in companies in certain sectors right as they enter their “breakout phase” and sell them before they enter the “maturity phase” and become well-known to the public. 

However, with many potential investment opportunities, how can you identify the right one? The author mentions that he focuses on five key markers in his research to make sure he recommends a solid opportunity for his clients. These are:

1. The company should be in a billion dollar (or larger) industry
2. It should have a proven CEO 
3. Its profit margins should be > 20%
4. The owners should be willing to invest cash 
5. The requirement of a catalyst

According to King’s belief, this new tech boom will be seen and felt in all industries and “will produce dozens of new opportunities to profit”. He goes on to mention that you could turn a $10,000 initial investment into a $100,000 profit in up to 10 years but doesn’t rule out the possibility of also seeing such profits in less than a year. 

He also claims that many of today’s most prestigious and profitable companies, including Boeing, Coca-Cola, McDonald’s, and others will see a downfall of up to 90% in their market caps as a result of this new tech boom. Therefore, he encourages his clients to sell their stocks in these mature companies and focus instead on smaller companies in industries like Artificial Intelligence (AI), 5G, precision medicine, robotics, and others. All sectors in which we have covered teasers in the past: Million-Mile Battery Stock and 5G Volta Company – Power Grid Play

The Fintech Stock Being Teased 

King doesn’t just tell his clients to focus on several industries that are considered to be the future, but also teases a specific company which, in his opinion, will produce gains of up to 10,000% over the next few years.

• He starts his pitch by claiming that a few famous investors have already invested hundreds of millions, if not billions in this new company which “is disrupting the $74 billion payment processing industry.”
• The next clues we’re given are that “it’s a leader in the financial technology industry or Fintech for short” and that “it allows any business owner to turn a smartphone into a cash machine.” 
• Also, according to the company King refers to, “a business owner can start using this device for free”. In return, the platform takes a “2.65% fee on every payment they process”.
• The fintech company the author refers to is also “helping businesses manage employees, disrupting the 322 billion business solution industry.” Allegedly, “you can use the system to pay employees, send invoices, pay taxes, and everything else in-between.”
• King claims that “it has the potential of being bigger than VISA and ADP combined”, which is a far stretch, at least for a few more years, as many other investors and newsletter authors have also predicted a surge in Visa’s stock price as many more payments are processed online due to the current pandemic and a change in customer behavior.
• The most important clue that gives away the name of the company quite easily is that “the CEO started companies like Twitter” and also helped Disney create its online streaming channel, Disney+. 
• Given all these details, we were able to identify the company Ian King talks about as Square (NYSE: SQ)

Here are some of the things that led us to our conclusion:

• Square was indeed founded by one of Twitter’s co-founders, Jack Dorsey, back in 2009
• It also checks off two of the criteria considered important by King when identifying a new investment opportunity, namely being part of a multi-billion dollar industry and “their top three directors have over $60 million at stake”, ticking another one of King's markers we highlighted earlier.
• Square also charges a 2.65% processing fee as was mentioned by Ian King.

Is This Stock A Good Opportunity?

Square has already established itself as a leader in the payment processing space while continuing to remain relatively unknown by the masses, which makes it an interesting choice for investors. The company is on the verge of entering its more “mature” phase as King dubs it, but it will probably still take a few more years to solidify its position in the market. 

As for the million dollar question, does Square really have 10,000% profit potential? Don't hold your breath, looking at Square's stock today, it is already massively over bid with a whopping price to earnings (P/E) ratio of 347x. Given this, we would lean towards staying away until a more reasonable purchase price can be had.

Quick Recap & Conclusion

• In his latest marketing video, financial advisor and author Ian King talks about the latest technology revolution, teasing a fintech company that will allegedly disrupt several industries and grant investors gains of up to 10,000% in just a few years. 
• To find out the name and ticker symbol of the company he talks about, King urges people to sign up for his investment newsletter, Automatic Fortunes, for $47. Included in the price, clients will receive 12 issues of the newsletter, an easy-to-follow model portfolio, daily tips, trade alerts, and six free reports. 
• For those who don’t want wish to pay up, we identified the company he talks about in the “End of the Dow” pitch for free as SQUARE Inc. (NYSE: SQ) the point of sale solutions firm.
• We consider it an overvalued play at this point in time (along with the rest of the market in general) so hold off on taking the plunge and maybe just dip a toe instead, if anything.

What do you think about King’s stock pick? Would you invest in Square and similar companies? Let us know what you think in the comments below.