Motley Fool is back at it, this time teasing what they're calling a "10x Turnaround" where they have supposedly identified a bunch of "10x Sweet Spots".
The enticing part of all of this is that we're being told that we can 10x our money off of the investments they've identified.
Sounds pretty good to me, but let's not forget that The Motley Fool's marketing team is pretty darn good and just about any promotion they come out with will have you dreaming of mansions and sports cars in the near future.
You have to take what they say with a grain of salt. Their marketing pages are no stranger to catchy lingo, as was evident from their "All-In" buy alerts, that recent "Triple Buy alert", and, what we've covered most recently from them... their "Tesla of Canada" stock pick (which we identified as Magna International Inc. (TSX: MG) by the way).
This isn't the first time they've mentioned their being "10x sweet spot"s and screaming to "buy the dip". In fact, they held a "Buy the Dip" summit back in June of 2021 that I know of, and probably others that I'm not aware of... and well, the results from this haven't panned out that well to-date (more on this).
What They're Saying About This "10X Turnaround"
It's a "10x turnaround".
They're saying they've identified a handful of "10x sweet spots".
Is it really time to "buy the dip"?
According to TMF:
We could be smack-dab in the middle of a “10x sweet spot."
What is a "10x sweet spot"?
In their own words:
Simply put, a “10x sweet spot” is a specific time window in the aftermath of a market crash when the rate of stocks with 10x potential skyrockets to extraordinary levels.
We are told that there was a big juicy sweet spot after the dot-com bubble bursted and that the "the 10-bagger rate was DOUBLE the average rate."
Then, there was the 2008 financial crisis and after this crashed the market, it was almost 5x the average rate.
Now, it's (at the time of me writing this and TMF's latest promo) summer 2022 and here's the spot they've identified...
If all goes as TMF plans, investing in the stocks they've narrowed in on "could put you on the path to an early retirement" - their words, not mine.
But, of course they aren't giving you these stock picks for free. No way José.
In order to get your hands on these stock picks, which come in a special report titled "10X Sweet Spot Stocks", you'd first have to buy into their Stock Advisor service.
At the time of me writing this, buying in to this will set you back $89 for the first year. This is supposedly with a 70% discount applied.
The following year the full $199 fee will be applied if you don't cancel.
HOWEVER, keep in mind that, as mentioned, this isn't the first time they've talked about these "10x sweet spot"s.
Past "10X Sweet Spot" Teasers
Before we go further, let's talk about the past "sweet spots" that TMF has identified as having 10x potential and how they've played out.
*Note: The latest teaser that mentions a "10X Turnaround" and "10X Sweet Spot" is for their Stock Advisor Canada service. However, what I'll be talking about below was for their 10X advisory service, also a service of Motley Fool Canada.
On June 15th, 2021 they ran a special online event for their 10X service from Motley Fool Canada. Leading up to this special event they provided 3 free stock picks released in a teaser promo before the online event aired.
These three free picks, which let me remind you were teased as having 10x potential, were...
- CuriosityStream (Nasdaq:CURI)
- Invitae (NYSE: NVTA)
- Compass Pathways (Nasdaq: CMPS)
Did these picks go on to give investors 10x gains?
Well, it's too early to say although it's already been over a year since they were first teased, but let's look at how they are doing at the moment... VIEWER DISCRETION ADVISED.
CuriosityStream was trading at $14.47 on June 15, 2021. As I'm writing this it's trading at $1.67. That's a return of -88.42%.
Invitae was trading at $30.96 on Jun 15, 2021. At the moment it's trading at $1.97. That's a whopping return of -93.64%.
Then we have Compass Pathways. It was trading at $37.53 on June 15, 2021. Now it's trading at $16.05... not nearly as bad as the previous two, but still that's a return of -57.23%.
All in all, the average return here is -79.76%.
How does that sound for a 10-bagger? These are closer to negative 10-baggers at the moment.
I understand that the market is taking quite a hit overall, with the S&P 500 being down nearly 21% halfway through the year (at the moment), but these stock picks were all in rather fledgling industries and, while "hot" and "new" with potential "exponential" growth potential, many would have said they were overpriced at the time... and it seems the market agrees.
Yes, we're in a a bear market, but just because the stock market overall is performing badly doesn't mean you can't still have big winners. Even during the Great Depression there were stocks that performed well.
It's the deep value, still needed for the functioning of society-type of stocks that my recommended investment newsletter, Insider Weekly, looks for and this is why their portfolio picks are still beating the market by a long shot.
What Stocks They're Teasing
So, what are their "10x Sweet Spot Stocks"?
They say that their special report contains "5 high-octane stocks that have been recommended in The Motley Fool Universe."
So, first off, what the heck does that mean?
Furthermore, we're told that "These stocks are guaranteed to give you immediate exposure to some of highest potential stocks with the highest quality business models."
And then for some reason they state that "We think it'll give your portfolio an instant shot in the arm!"... whatever that's supposed to mean.
Unfortunately, they don't even leave us any bread crumbs to follow. Their are no clues as to what these stocks are.
All we know is that they supposedly have "high quality business models" and in another part of the teaser it was stated that they are "beaten-down, deep-value investments".
They've already been recommended?
These are stocks that have been "recommended in the Motley Fool Universe", so it sounds like they have already been TMF picks in the past.
This is nothing out of the ordinary. TMF often pounds the table over and over again on stocks they've previously recommended.
BUT, although this teaser is for Moley Fool Canada's Stock Advisor service, it sounds like these aren't necesarily stocks that have been recommended in the past through Motley Fool Canada - could have been recommended through their American Motley Fool branch too.
In the past, some of the picks they've teased that we've looked into include:
- The Trade Desk (TTD)
- They've teased this one quite a lot over the years, even as an "All In" stock buy alert. It's been called their "cord-cutting stock" and they even called it the "Netflix Killer" at one point.
- Markel (MKL)
- This is one they teased as a "Mini-Berkshire" and they put out a "triple buy alert" for it.
- Fastly Inc. (FSLY), Appian Corp. (APPN), Zoom Video Communications Inc. (ZM), Elastic N.V. (ESTC), and Roku Inc. (ROKU)
- These were the 5 "FAZER" picks that they teased as having 400% gain potential and being the "Next FAANG Stocks."
- Block Inc. (SQ)
- This one was teased as their "top crypto play". They've been bullish on this company for years.
- Magna International Inc. (TSX: MG)
- Magna is the company they've been teasing as the "Tesla of Canada".
Are any of these the recommendations they're making here for their "10X Sweet Spot" picks? I have no idea to be honest. The only way to find out is to get the information from a subscriber or to subscribe yourself, but it's possible that they are reteasing some of these.
Quick Recap & Conclusion
- The Motley Fool is teasing a "10X Turnaround" and some "10X Sweet Spot" stocks that they think you can make 10x from... although how long they want you to hold onto these stocks is left undefined.
- By looking at their track record of "10x sweet spot" stocks that were teased in June of 2021 via their 10X advisory service, of which the average return of the 3 free picks they gave is currently sitting at -79.76%... well... things aren't looking too good.
- The "10X Sweet Spot Stocks" that they are currently teasing are unfortunately unknown to me, due to no clues being given.
So, the big question here is: Should you buy into their Stock Advisor service to find out the names of these stocks? Is it worth the money?
Well, you can see how their previous 10x picks performed. That said, they think that the market is about to turn around, and that their 5 picks are the perfect stocks to get into to make a killing from it.
The choice is ultimately yours, but I'll stick to the Insider Weekly newsletter service. These guys do an amazing job looking for deep value sectors that are, in their words, "unloved and totally off the radar of the average fund manager."
Basically, what the guys running this service do is look for out-of-favor sectors that are often hated and lack investment, yet are still vital for the functioning of society. These generally present deep value and low risk.
Can't recommend them enough. You can learn more about the Insider Weekly service here.