Jeff Yastine's "Law of Unstoppable Profits" has been teased a lot online recently, but what the heck is he talking about here and what's the stock he's teasing?
In this review I'll be cutting through the BS and talking about what this "Law of Unstoppable Profits" really is and what you need to know, what the stock is that he's teasing, which he claims is a "screaming buy", and more.
The Teaser:
You've probably already come across the teaser for this opportunity. There are a handful floating around. I care across three presentations, and there are likely more...
The formulate for this "law" is UP = OCF - OE... and Yastine claims "Wall Street has been quietly using this precise formula to rake in fortunes for over 25 years".
They've been quietly using this formula? Really?
No, I don't think so. As I'll go over in a bit, this is no secret.
But anyways, back to the teaser. Jeff Yastine tells us that stocks that meet the criteria of the Law of U.P. "can hand you, on average, FIVE times more profit than those that don't"... and that this law can accurately predict when a stock will soar.
Much of the teaser presentation is filled with charts he flashes before us of massive gains, such as Advanced Micro Devices and Western Digital Corp here...
One of the big problems he talks about when it comes to investing is that of financial data corruption, which is when companies fudge their numbers (often legally) to make it seem as if they are doing better than they really are, which is called "stuffing the channel" as he states. And there have been a number of large companies caught doing this over the years... some sued for illegal activity and others that continue to get away with it.
The good news, as far as the teaser claims, is that the Law of U.P. is "almost impervious to the effects of corruption". He claims that this indicator is different from everything else because of this and that it is "unlike any moneymaking tool or opportunity I've recommended before", which is of course something he says in one way or another for just about all of his recommendations.
Yastine tells us that this law has been called "Warren Buffet's Secret Sauce" and that it has identified a specific stock as being a "screaming buy" right now, which he thinks it could make you as much as 300%.
And of course he suggests you act today.
All of the information about this indicator and the stock he's teasing is in his report: Unlock a 300% Gain With the Law of UNSTOPPABLE PROFITS...
Now this is a "free" report... BUT, in order to get this "free" report you first have to subscribe to his newsletter advisory service, Total Wealth Insider.
Total Wealth Insider is a follow-along investment advisory service where Jeff Yastine provides investment recommendations to subscribers on a regular basis, but I'm not going to get into this too much... the point is that in order to find out more you have to get this "free" report and in order to get this free report you have to buy a subscription to his Total Wealth Insider Service.
What Is the "Law of Unstoppable Profits"?
The "Law of Unstoppable Profits", as he calls it, really just refers to the amount of Free Cash Flow (FCF) a company has.
The formula given in the presentation was:
UP = OCF - OE
.. and the generic Free Cash Flow (FCF) formula is...
FCF = OCF - OE, which stands for Free Cash Flow = Operating Cash Flow - Operating Expenditures
There are different ways to write this formula, but the basics are the same.
The reason this is called "The Law of Unstoppable Profits" in the teaser presentation is just for marketing purposes, that's all. They want to make this seem like some amazing new thing that no one has ever heard of before, when in reality it is far from that.
That said, finding out the amount of FCF a company has is important, and has proven to be a very reliable way to find good investments.
The Importance of Free Cash Flow
FCF is important because it shows how much money a company has at its disposal after paying all expenses. You can think of it as money in the bank. This not only helps to ensure a company has some cushioning if times get hard, but it also is important if the company wants to develop new products and services, which is easy to understand.
What's strange is that most investors don't look at the FCF a company has, while this tends to be a better measurement of the fundamental performance a company has than the commonly looked at P/E ratio.
Jeff Yastine tells us that all you do is compare the FCF from the previous year to the current year, and if it's increasing this means that "the stock has the potential to soar".
Now I certainly wouldn't leave a stock analysis at just that, but it's a start.
Who Is Jeff Yastine?
Jeff Yastine joined the Banyan Hill Publishing team in 2015, which is the company that publishes the Total Wealth Insider newsletter service as well as many others, including his co-authored Profit Line newsletter service.
Before being employed here, Yastine was a financial journalist and an investor himself. One of his more notable positions includes being a correspondent on PBS's Nightly Business Report for over a decade (was nominated for an Emmy for this), which gave him the opportunity to meet and talk with legendary investors and entrepreneurs like Warren Buffet and Richard Branson.
He also has a lot more under his belt, and it's worth mentioning that he warned investors about the real estate crisis of the mid-2000's as well as the dot-com bubble, but I won't get into things too much... the point is that he has a good background and often knows what he's talking about, although his teasers can be misleading and somewhat deceptive.
What Stock Is Being Teased?
Supposedly there is a "screaming buy" that the "Law of Unstoppable Profits" has identified... and Jeff Yastine states that he thinks this particular stock could increase by 300% or more... although we are given no time-frame.
The clues Yastine provides in the presentation are lacking. Some of the better hints dropped include:
- "it's an up & coming leader in smart transportation"
- "it's products play a vital role in keeping America's roads safe and manageable"
- it makes components in stop lights and traffic cameras
- 6 million cars rely on its technology
- some of its big institutional shareholders include BlackRock, Fidelity and Vanguard
- and in on of the presentations he states it's a $6 stock (probably means in the ballpark of $6)
When he mentions that 6 million cars rely on its technology, he's likely talking about autonomous vehicles, which makes sense considering he says this company is a leader in "smart transportation".
And could the components that he mentions being a part of this company's influence on "smart transportation" have something to do with the electronic signal transmitters that are found in some of the "smart" traffic lights we are starting to see pop up... which communicate with autonomous vehicles?
Stock Pick = ?
Unfortunately there isn't all that much information given and I don't feel comfortable providing wild guesses as to the company he's teasing here. Normally I'll expose the exact stock being teased, such as in my reviews of Matt Badiali's "magic metal" stock and David Fessler's "The Next Tech Giant" stock... but this just isn't possible here.
*If you have any information on his Law of Unstoppable Profits stock pick, or any guesses, please do share in the comment section below this post!
Quick Recap
- Jeff Yastine claims the Law of U.P. has been used by Wall Street to "rake in profits" for decades
- We are led to believe this is some sort of secret formula or something
- It turns out that the Law of U.P. is really just referring to how much Free Cash Flow a company has
- Yastine tells us that there is one stock that meets the Law of U.P. requirements and is set to soar 300%
- In order to get more information on this stock you can get his "free" report: Unlock a 300% Gain With the Law of UNSTOPPABLE PROFITS
- In order to get his "free" report you have to pay to subscribe to his Total Wealth Insider subscription advisory service
- Normally I'd expose the stock being teased here for free, but the hints he provides are extremely limited, and so I can't
I hope this review helps clear the air a bit. It's unfortunate I couldn't expose his stock pick here, but if you have any additional information about it or clues please leave them below in the comment section... I'm sure it will help out other readers.