Here’s How You’ll Make 700% Gains This Year With Your Own Private “Money Machine” By Teeka Tiwari on January 18, 2018 Print
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Strolling the docks of superyachts in Cannes last year, you might have caught a glimpse of a reclusive gray-haired billionaire sauntering the polished teak decks of his $100 million superyacht, Archimedes. What’s so special about spotting a billionaire in Cannes? The place is full of them… Well, this particular billionaire holds a key to making you richer than you can imagine.
His name is Jim Simons. Jim started as a math professor at Stony Brook University in New York. Today, when he’s not on his $100 million yacht or flying on his $45 million jet, he’s checking up on his $18 billion net worth from the comfort of his $20 million Long Island mansion. He built his wealth from a hedge fund business called Renaissance Technologies. He’s most famous for his successful Medallion Fund. According to one report, the Medallion Fund has created more billionaires than any other hedge fund in the world. By any yardstick, Jim and his team at Renaissance are the most successful investors the world has ever seen. For 29 years, they’ve possessed a secret that has created what one Bloomberg reporter called “a fountain of money unlike any other.” In this month’s issue, I’m going to peel back part of that secret and show you how to gain access to some of the same type of information Jim has used to fund his lavish lifestyle. I’ll also show you how you’ll make at least 83 times your money this year— and as much as 333 times your money over the next 2–3 years. That would turn every $1,000 into at least $83,000. That’s the kind of lifechanging, asymmetric trades we look for in Palm Beach Confidential. Before I show you how we’ll do that, let me tell you a little more about the company behind the Medallion Fund, Renaissance Technologies.
Crypto Corner We’ve recently renovated the entire Palm Beach Confidential Crypto Corner. If you have questions about anything cryptocurrencies, chances are you’ll find the answers there. There, you can access our research and step-by-step videos on web-based wallets, hardware wallets, and other cryptocurrency services. Be sure to check out our wallets and exchanges list to see which exchanges you can buy all our recommended coins on and which wallets we recommend holding them in.
The Closest Thing to a Crystal Ball Renaissance has two unique features: 1 If you previously worked on Wall Street, they probably won’t hire you. 2 They do zero fundamental analysis. The company is staffed almost entirely with astrophysicists, string theorists, and all manner of mathematicians. Three hundred scientists—including 90 who hold Ph.D.s—spend all day doing one thing… Analyzing the price movements of stocks and commodities. This is what a Bloomberg article said about Medallion last year:
[B]ased on models that find signals hidden in the noise of markets, [the Medallion Fund] has become probably the world’s most
successful money machine. Powered by millions of lines of computer code, it has made about $55 billion over the past 29 years, thanks to average returns after fees of an astounding 40%. If you want to invest with Renaissance, forget it. They stopped taking outside money in 2005. Want to get a job there? I hope you have an advanced degree in astrophysics or you’re an expert in string theory… Otherwise, you have no shot. For decades, the ordinary investor had no access to funds like Medallion and its unique strategy. You had to be to be very well-connected… very rich… or smart enough to work there. But all that is about to change… A small team of blockchain coders has figured out some of Jim Simons’ juiciest secrets. This small band of computer scientists, neuroscientists, mathematicians, and linguists have put their brains together to create a money machine unlike any I have ever seen outside of a hedge fund like Medallion. Here’s a sample of the publicly released test results of nearly 900 financial events their analysts have predicted: • On January 19, 2017, five minutes before the markets opened, the team published price predictions on gold, silver, the U.S. dollar, the Russian ruble, and Brent oil. Each prediction included an entry point, stop-loss, and profit-taking point. Over a three-week public test period, the team had average annualized gains of 47%. • On December 11, 2017, their computers said to buy Valeant Pharmaceuticals (VRX) at $20. At the time of this writing, the stock was around $24. That’s a 20% rise in just 27 trading days. • In early January 2018, they publicly announced that Netflix would beat estimates. On January 18, Netflix reported earnings of $1.15—a 15 % earnings beat—and the stock shot up 9%. But it’s not just stocks; they also released test results of their crypto trades: • On December 11, 2017, they said to buy NEO when it was at $35. As of this writing, it’s over $115. • On December 14, 2017, they said to buy the CRED token ICO. As of January 5, 2018, CRED had peaked 20 times higher. • December 20, 2017, they said to buy Ripple at 70 cents. Two weeks later, Ripple was at $3.30. What’s amazing about their results from January 19, 2017, (when they predicted the prices of gold, silver, dollars, rubles, and Brent oil) was that 40% of their analysts had never made a trade on an exchange in their lives. Just like Renaissance, these guys have found out how to make money from the markets without using a traditional Wall Street staff.
They have figured out a way to tap into a brand-new form of research called hybrid intelligence. I’ll explain what that is in a moment. What you need to know now is that hybrid intelligence can make you richer than you ever thought possible.
The Wisdom of Crowds The way to access this intelligence is through a crypto token called Cindicator (CND). We recommended Cindicator in the short-term trading portfolio on December 18. Let me explain to you why I am adding it to the long-term portfolio this month, and why, if you don’t yet own it, you absolutely should get some right now. The insiders of Cindicator are a group of scientists from across the world. They’ve come together to create what I believe is the most undervalued crypto token on the market today. Cindicator is a utility token. That means you need to use Cindicator tokens to access the project’s trading signals. Here’s what took my breath away: It’s been trading on the exchanges for just 14 weeks. It’s largely unknown, which makes the following information even more impressive. Relative to its launch date, Cindicator is the most heavily used utility token I’ve ever seen. Again, I have never seen a token gain so much utility so quickly. 20% of its tokens are already being used to secure Cindicator’s prediction services. Compare that to other prediction coins such as Augur, Gnosis, and Stox. 100% of their coin holdings are for speculation. That’s because none of those projects have a live service yet, and they’ve been trading since October 2015, May 2017, and August 2017, respectively. So what makes Cindicator so different from Gnosis, Augur, and Stox?
Tapping Into Collective Wisdom Aside from having an actual working product, Cindicator utilizes hybrid intelligence. Hybrid intelligence works in two parts. The first part uses something called crowd intelligence… Crowd intelligence is a method of making predictions of future events by polling a group of people and averaging their answers. The average opinion of the crowd is generally more accurate than that of a single expert.
The Bull Display and Jelly Bean Jar Experiments A famous example of the Wisdom of the Crowd phenomenon was in 1906. That’s when British scientist Francis Galton visited a rural fair where he invited fairgoers to guess the weight of a bull on display.
About 800 people—some of them professional farmers, others not—wrote their figures on tickets. After collecting the tickets for analysis after the fair, Galton averaged all the guesses. The result: 1,197 pounds. The actual weight of the bull was 1,198 pounds. The collective wisdom of the crowd came within less than one-tenth of 1% of the bull’s actual weight. A more recent example was in 2011. That’s when Professor Marcus du Sautoy, a presenter for the BBC, asked 160 colleagues how many jelly beans were in a jar. The guesses ranged from a low of 400 to as high as 50,000. The average of all the guesses—4,514. The actual amount of jellybeans in the jar was 4,510. What’s remarkable about this experiment is over a hundred years after Galton’s experiment, the wisdom of the crowd once again came within onetenth of a percent of the actual number. Sophisticated hedge funds like Renaissance and intelligence agencies like the CIA already use crowd intelligence models to forecast outcomes in economics and geopolitics. Cindicator has done something a little different. It merges crowd intelligence with artificial intelligence (AI). By adding AI, the company can make even better predictions than by using crowd intelligence alone. Cindicator proved this when it released the prediction results from the January 19, 2017, test on gold, silver, dollars, rubles, and oil prices. Its very best of crowd participants averaged annualized gains of 25%. But when Cindicator added its AI component to its human component, annualized returns leaped to 47%. They call this merger of human intelligence and AI hybrid intelligence. What’s amazing about hybrid intelligence is that it can be used for just about anything. Stock market research, political polling data, consumer research, sports betting… The applications are endless. This means the potential market for Cindicator is huge. Think about this… • During the last election cycle, spending on political polling topped $6.8 billion. • Wall Street spends $50 billion per year on research. • Over $1 trillion annually is spent on sports betting. • Large corporations spend an estimated $12.5 billion annually just on consumer market testing before launching a new product. • Insurance companies pay $185 billion per year trying to predict risk. Each of these industries is a potential buyer of the Cindicator token. For now, the team focuses on the finance sector, but as it grows, you’ll see a slew of new services being offered to other industries.
Just How Does Cindicator Work?
At this point, you might be wondering, “Exactly how does Cindicator work and how do I make money from holding the token?” Cindicator gathers data by polling 30,000 analysts through its Android app. These analysts answer questions about future events. (The analysts are paid proportionally from a reward fund based on the accuracy of their forecasts. The more accurate their predictions, the more they are paid.) Cindicator then aggregates the polling data and runs it through the AI component, which sends trading signals to Cindicator token holders. The more tokens you own, the more (and better) information you receive. To date, Cindicator has been correct 72.4% of the time across all of its predictions (according to its published forward test results). As I’ll show you below, certain data packages have done even better than that. To access Cindicator’s data, you have to either spend (i.e., send tokens to Cindicator) or “stake” a certain amount of coins. Let’s focus on staking for now because that’s my recommended way to access Cindicator’s predictions. When you stake Cindicator tokens, you put them into a wallet that proves your ownership. So long as the coins stay in the wallet, you continue to receive trading signals. Cindicator offers four tiers for data access. They require as little as 5,000 tokens for the beginner package and as much as 1 million tokens for their “Cryptometer” Bot 2.0 package. (Trading bots automatically execute trades based on preset algorithms, indicators, or parameters.) Earlier in the report, I wrote that I thought Cindicator was the most undervalued token on the market today. Here’s why I think that… The cost of each level of service is way undervalued relative to the gains users can make from each tier. There are four tiers of service: Beginner, Trader, Expert, and Cryptometer. I’ll explain them in more detail in a moment. But first, let me share with you Cindicator’s outstanding results… I was able to obtain and review Cindicator’s published test results from their crypto-asset indicators. (Keep in mind, though, that Cindicator also has indicators on stocks, indexes, and commodities.) Here’s what I found: • Its weekly bitcoin price forecast indicator did 38 trades between January and June 2017. Of those trades, 24 were winners. And the average return for all trades was 0.95% per week. That works out to 49.5% annualized. • Its monthly price forecasts on bitcoin, Ethereum, and Litecoin executed 15 trades between January and May 2017. There were 13 winners and two losers. The average gain of all trades was 58.2% per month. That works out to 708.1% annualized.
Since its release on December 11, 2017, the Cindicator Bot has issued 128 alerts: • 17 Beginner Package Alerts • 29 Trader Package Alerts • 82 Expert Package Alerts Of those total 128 alerts, 58 have closed with a 72.41% win rate. (Below, I break down each Cindicator alert package.)
Cindicator Packages Cindicator offers several trading packages. The more tokens you use per package, the more services you receive. If you want to know how Cindicator will make money, then you need to understand what each package entails. (If you’re not interested in buying a Cindicator trading package, you can skip this section.) Beginner Package: 5,000 tokens will cost you around $350 at current prices. That will get you access to the Beginner Package. This package gives you: • Community choice indicator: One crypto pick per week • Market events probability indicators: A weekly prediction that can cover traditional markets, politics, or cryptos As an example, the Cindicator Bot sent an alert to Beginner traders on December 20, 2017 to buy Ripple (XRP) at 70 cents. It rallied to over $3. Trader Package: 200,000 tokens will cost you around $15,000 at current prices. That will get you access to the Trader Package. The Trader Package includes everything from the Beginner Package plus the following: • Weekly support and resistance levels: Projected highs and lows of a selection of cryptos and traditional financial assets • ICO ranking: A ranking of upcoming ICOs from best to worst • Price level indicators: Predictions on whether a crypto will reach a certain dollar value by a specific date As an example, the Cindicator Bot sent an alert to traders on December 11, 2017 on Valeant Pharmaceuticals (VRX) before the market opened. VRX made 8.5% in just a few days. Expert Package: 700,000 tokens will cost you around $52,500 at current prices. That will get you access to the Expert Package. The Expert Package includes everything from the Beginner and Trader Packages plus the following: • Price level indicators: Tracks a basket of the most popular stocks and indexes and predicts they will reach a certain dollar value by a specific date On December 14, 2017, the Cindicator Bot indicated Verify (CRED) as the highest-growth ICO on its list. Those who acted on the alert when it was sent made 20 times their money priced in U.S. dollars.
Cryptometer Bot 2.0: 1 million tokens will cost you around $75,000 at current prices. That will get you access to the Cryptometer Bot 2.0 Package. It includes everything from the Beginner, Trader, and Expert Packages, plus the following: • The Cryptometer Bot generates 1–5 arbitrage trades each day. An arbitrage works by buying a token on one exchange (where the price is lower) and selling the exact amount of the same token on another exchange (where the price is higher). Here’s a published sample of some arbitrage opportunities you would have had access to over the first two weeks: • An opportunity to make 13.7% on Bitcoin Cash (BCH) as it traded higher on Poloniex compared to Bitfinex. • An opportunity to make 14.1% on Ripple (XRP) as it traded higher on Kraken compared to Poloniex. • An opportunity to make 152.9% on NEO (NEO) as it traded higher on Bittrex compared to Bitfinex. Cindicator says you should expect to make 1–3% per day with Cryptometer Bot. During its first two weeks, five trades could have made you 5% or more. The NEO trade was notable. A flash crash on Bitfinex on November 29, 2017 caused NEO to plunge. There’s no way you could manually find such an opportunity. But Cryptometer Bot 2.0 users had a full five minutes—an eternity for cryptocurrency arbitrage —to make over 150%. If you can make 1% per day with Cryptometer Bot 2.0, that’s 3,678% annualized. Does a $75,000 cost for the potential of 3,678% annual gains sound rational to you? You can see in some of the trade examples generated by each trading package above that, relative to the potential returns, the price of Cindicator tokens doesn’t make sense. In fact, they’re radically underpriced. But that’s about to change. Cindicator is on the cusp of launching a global marketing campaign that will put its market-beating trading signals in front of every major hedge fund in the world. Cindicator says the strategy includes reaching larger audiences through finance, tech and business media… increasing online marketing… and working with opinion leaders and influential bloggers. We have a unique opportunity to jump ahead of the hedge fund elite and get into Cindicator before they’ve even heard about it.
What’s It Worth? The way you access Cindicator’s signals is by proving you own a certain number of tokens.
To keep getting the information, you have to maintain your ownership. This effectively shrinks the pool of available tokens. To date, more than 20% of CND tokens have been removed from the market via staking. The total token count is capped at 2 billion. (There are 1.4 billion actually in the market; 5% of the tokens have gone to rewarding contributors and the rest are held by Cindicator under a two-year vesting schedule.) That means there can never be more than 2,000 users of Cindicator’s most valuable product, Cryptometer Bot 2.0 (It costs 1 million tokens. 1 million x 2,000 = 2 billion). So how high do I think this can go? This year, I think we’ll see at least $5 per token. Here’s why… Let’s assume users have the ability to make 1.5% per day using Cindicator. A $100 million hedge fund dedicated to this strategy would make approximately $1.5 million per day. Let’s ignore compounding for now and assume over the year, the fund continued making $1.5 million per day. By the end of the year, the $100 million fund would have made $547 million. That’s more than a 5x return. How much would an institution pay to make nearly a half-billion dollars? $5 million? $10 million? $20 million? $50 million? As a former hedge fund manager myself, I’d have no problem green-lighting a $5 million spend on research if I thought we could make $1.5 million a day from it. That’s why I think funds will easily pay $5 million for a shot at those types of gains. Remember, funds will have to own 1 million CND tokens to access the best research. That would suggest that Cindicator could reach $5 this year and still be a highly profitable research source for a hedge fund. After a solid year or two of predictions, we think we’ll see a widespread surge of institutional buying of Cindicator tokens. Now match what we expect to be an excellent track record with a slew of new prediction products that cover all manner of financial and nonfinancial predictions… and we think the price of the token could be pushed to as much as $20. Your initial response might be, “Hold on, Teeka. You said you think this will hit $5–20. That means you’re looking for a $10 billion–40 billion market cap. That’s crazy!” (Cindicator’s current market cap is about $140 million.) Before you write me off as a lunatic, think about this… Unlike any other coin I have written about, market cap doesn’t matter when it comes to CND. It’s not market cap coin. What matters is the expected return on investment of the research versus the cost to access it. The experts I have spoken to in the institutional research space tell me institutions will pay as much as 20% of the expected return for a research source.
So for instance, a customer would pay $100 million for an expected payoff of $500 million. As you can see, buying 1 million tokens and investing $20 million (assuming $20 per token) is actually a conservative number relative to the potential value of the research. You might be concerned that if everybody has access to this great research, it will cause the profit opportunities to disappear quickly as big-money hedge funds jump on the ideas. Here is what you need to remember… The number of data users is capped by the number of tokens in the float. If every potential user decided to buy 1 million tokens to get access to the best research, only 1,400 spots could be taken because the float is 1.4 billion tokens. Even when every single token is in the market, the maximum number of users (assuming everyone wanted the top package) could never be more than 2,000. This hard cap of users ensures that token holders will be part of a very small and elite group of traders. Here is my prediction: Over the next two years, every major hedge fund, day trader, and bank trading desk in the world will buy Cindicator. You will be priced out of this resource if you don’t take action right now and own some. As the value of Cindicator grows beyond the reach of all but the very wealthy, you’ll share an enormous edge with the richest investors and traders in the world. If you’ve ever dreamed of owning an investment that could fund your lifestyle forever, then you must own Cindicator. It’s a holding that will continue to make you money year in and year out. It has the potential to be your very own money machine the way the Medallion Fund has paid for Jim Simons’ superyacht, private jet, and lavish Long Island mansion.
Here’s What Takes It Higher We believe we’re in the early stages of a mass migration from traditional assets (like stocks) to crypto assstes. In the past, we’ve written about the non-correlated aspects of crypto. That means crypto prices are not affected by movements in the stock and bond markets. As we told you last month, research suggests that money managers can reduce the volatility in their overall portfolio by adding crypto assets. We think as much as 10% of the money in traditional assets will migrate into crypto assets. Institutional money managers will be hungry for proven research sources in the crypto space. That makes Cindicator an easy choice for them. Over the
short term, we think the biggest buyers will be hedge funds. This is where Cindicator will be focusing its marketing efforts. There are 150 new crypto funds launching in 2018, with hundreds more coming. All of these funds will own at least 1 million CND. On top of crypto funds, there are an estimated 15,000 hedge funds worldwide. If 10% of them add crypto exposure, that’s 1,500 hedge funds that are likely buyers of Cindicator tokens. Remember, the top-tier research package requires holding 1 million tokens. So that means if 1,500 hedge funds need to buy 1 million tokens each, that’s 1.5 billion in potential token demand. But guess what? There aren’t enough tokens to go around. There are only 1.4 billion tradable CND tokens. 20% of those are already locked up. That leaves 1.12 billion tokens facing a projected demand of 1.5 billion tokens. And this demand projection is just for hedge funds. It doesn’t include the 7 million global crypto traders… the 20 million traditional stock traders… or the 10,000 mutual funds. You know what else it doesn’t include? The projected demand from: • The $6.8 billion spent on political polling research during election time • The $1 trillion per year wagered by sport bettors • The $183 billion spent each year on insurance risk research • The $12.5 billion spent each year on corporate research • The $50 billion spent each year spent on traditional Wall Street research That’s why we think you’ll see a massive demand-driven rally in CND tokens that will take them to $5 this year and $20 over the next couple of years. At the time of this writing, we can buy them around 7 cents.
What Is B.I.T.S. Saying? B.I.T.S. is designed to automatically alert us to ideas when investor sentiment is low. We call this buying at the bottom of the fear curve. You can read how the system works here. B (Business Value Ratio): The business value ratio measures the daily dollar value of all transactions compared to the total value of the cryptocurrency. When the business value ratio dips below its average, it’s a sign the crypto token is cheap.
The Cindicator business value indicator rose higher recently as trading volume in CND has dropped. As buyers come into the market, the ratio will drop and put Cindicator back in the buy zone. Also keep in mind that Cindicator has only been trading for three months… so there’s minimal data to work with. I (Insiders): When the business value ratio is flashing, I go to my insiders. Two advisers to Cindicator that you may be familiar with are Anthony Di Iorio and Charlie Shrem. Anthony is one of the founders of Ethereum and Charlie is one of the earliest investors in bitcoin. When I asked them why they chose Cindicator, they told me they loved the idea, but most importantly, they respected the team. Here’s what I discovered… Cindicator received over $500 million in buy orders for its ICO. Instead of being greedy, they capped the ICO at $15 million. They took the time to find investors they thought could add value to the Cindicator ecosystem. They also limited the size of each investment so trading wouldn’t be dominated by “whales.” Cindicator isn’t a money grab for these guys. If it was, they would have taken the $500 million. The team is devoted to the idea of helping people make better decisions through hybrid intelligence. The restraint and maturity they showed in the ICO says a lot about the integrity of the team. T (Technicals): We use technical analysis to tell us when the selling is over. The Relative Strength Index (RSI) measures how strong a cryptocurrency is based on its previous trading history. If today’s price is higher, the RSI moves up. If today’s price is lower, the RSI moves down.
The RSI is showing us that the current sell-off is overdone. It hasn’t flipped to a buy yet, but given the recovery in prices, we expect it to flip to a buy signal in a day or two.
S (Social Media): Our research has shown that before a cryptocurrency takes off, we always see a surge in “chatter” on our social media tracker.
As you can see, our social media “chatter” indicator broke above its baseline in December 2017. While it has tailed off recently, we put that down to the recent crash we’ve seen in the overall crypto market.
Bringing It All Together Cindicator is a unique crypto token in that it’s incredibly useful right now. We’re not waiting for a testnet or alpha launch. You can start extracting value from your token ownership immediately. At the time of this writing, Cindicator is relatively unknown. But that’s about to change. The team is getting ready to unleash a global marketing blitz that will put Cindicator in front of just about every major hedge fund, family office, and serious trader across the globe. The time to buy is now, before the media blitz happens.
Action to Take Cindicator is a unique utility token in that it’s up and running right now. Even when I recommended Ethereum at $7, it wasn’t being used as much as Cindicator is right now. Remember: 20% of the tokens have already been staked to get access to their research. Can you imagine what will happen once the team gets this idea in front of every hedge fund and family office? The demand for the token is going to skyrocket. The time to take action is now. As always, place no more than $200–400 for smaller accounts and $500– 1,000 for larger accounts into this trade. Trade to Make: Buy Cindicator (CND) Buy-up-to Price: $0.30 Stop Loss: None Buy It On: Binance, HitBTC Store It On: MyEtherWallet Important note: Immediately after our buy recommendations, we often see an initial price spike. We understand that this can be frustrating. But don’t worry. This is par for the course in the cryptocurrency space. Most of the time, the recommendation falls back below our buy-up-to price. The best approach to take: Place a limit order. Then, just be patient and let the price come to you.
Introducing Our New Analyst: Chris Wood Teeka’s Note: Friends, we first started Palm Beach Confidential as a smallcap advisory service. But then we started making huge amounts of money in
cryptocurrencies, and so, naturally, our focus shifted to providing you with the best crypto information in the world. But we haven’t forgotten the importance of stocks. Here at Palm Beach Research Group, we take a holistic approach to wealth building. That means we look at the whole picture. We embrace all manner of assets from incomeproducing real estate, to private business ownership, to options and stocks, and of course, cryptos. I believe we will soon see a proliferation of new blockchain-enabled businesses emerge in the public markets. That’s why I’ve wanted to add small-cap stocks back into Palm Beach Confidential. As you know, I live out of a suitcase… chasing down the world’s best crypto investments. I no longer have the bandwidth to do the level of due diligence necessary to find world-class, small-cap stock plays. That’s why I “poached” one of the best small-cap analysts in the world from my friend and legendary speculator Doug Casey, the founder of Casey Research. I’m only joking when I say “poached.” Over an overpriced breakfast in San Francisco, Doug graciously gave his blessing for me to approach his top small-cap guy. I am very happy to report that he said yes to joining our team. Friends, I’d like you to help me welcome our newest member of the Palm Beach Confidential team: Chris Wood. Chris is a rockstar, small-cap stock analyst. In his former career, he valued private companies. When it comes to ripping apart balance sheets and sniffing though marketing B.S., no one I know has Chris’ raw analytical ability. His track record is amazing. Over the last nine years, he’s delivered an average gain of 19% per recommendation. I know to us in the crypto space that seems like small potatoes… But in the stock world, that puts Chris’ performance alongside such giants as Warren Buffett, who has averaged 19% per year across his career. We are incredibly lucky to have an analyst of Chris’ skill on the team. I’ve asked him to focus on blockchain ideas. Since that market is just developing, I’ve also asked him to look at other small-cap sectors he thinks are ripe for profits. So in addition to blockchain stocks, Chris will be looking at biotech and cannabis stocks. Chris has already had huge success in these areas. For example, when Chris recognized the potential of small drug companies developing painkillers that don’t get you high and don’t lead to addiction, he recommended buying Nektar Therapeutics and Cara Therapeutics in October and November of 2016. Less than eight months later, his subscribers cashed
out a 233% gain on Cara. And they only had to wait 11 months to book a gain of 153% on Nektar. In April 2017, Chris recommended 22nd Century Group. This company is a biotech firm developing tobacco with less nicotine and cannabis with less THC. Chris called it “one of the safest marijuana stocks you can buy” because it had a potentially lucrative tobacco business to fall back on if a hiccup occurred in the marijuana legalization movement. Subscribers made 131% in just nine months. In total, Chris booked 100%-plus gains on seven stocks in 2017. I’m looking forward to bringing his ideas to you throughout 2018 and beyond.
Blockchain Opportunities in the Stock Market
By Chris Wood
Thank you for the kind introduction, T. I couldn’t be more excited to join this team. Now, on with the show… Last night, while I was researching small-cap stock opportunities as usual, snow fell in New Orleans. It was the first time I’ve seen snow here in a long time. It wasn’t much, just a dusting, but it brought me back to my early days in this business when I lived in the very snowy ski village of Stowe, Vermont. I usually arrived at my office there early in the morning and left rather late. So, on occasion, when the snow storms were really bad, I’d get stranded at the office by myself… sometimes for a couple days at a time. No joke. While stuck at the office during one really bad storm in early 2011, I inadvertently discovered the secret to this business of finding great opportunities in the stock market. It was about 3 a.m. My car was the only one in the parking lot. But you could barely see it; the snow was so high. I was analyzing a small-cap biotech company called Seattle Genetics—which was developing what seemed like a sort of “smart bomb” for some cancers— when I wondered how many other analysts out there were burning the postmidnight oil looking for opportunities like this. It couldn’t be many, I thought.
Seattle Genetics ended up being one of the first three recommendations I made to subscribers that more than doubled. I’ve had many more since. But that night at my office really drove the point home that the secret to this business is no secret at all. It’s really about being willing to go to greater lengths than the next guy or gal to find great ideas. Whether it’s spending longer hours at the office, attending conferences, visiting companies and industry experts, or just going where the action is. And that’s what I promise to bring you in the months (and hopefully years) ahead… great ideas that come from going to any length necessary to find. With that in mind, I’d like to shift gears just a bit and give you a brief introduction to the idea of capitalizing on the crypto/blockchain trend by investing in stocks. So, the value of all cryptocurrencies currently stands at about $450 billion, according to CoinMarketCap. That’s up nearly 2,000% since January 1, 2017. And things are just getting started. Blockchain-based systems could eventually surpass the impact that the internet has made in our lives over the past 20 or so years. So how does the average investor get in early on this trend? You can buy the cryptos themselves, of course. Many regular readers of Palm Beach Confidential have already made life-changing gains following Teeka’s crypto recommendations. But just like buying and selling options or trading futures, many investors are confused by the new digital assets and would rather have their money in more traditional markets. It’s understandable. Buying cryptos is certainly not as easy as buying stocks from your online broker. The good news is that you can play this trend in the stock market. But before we get into that, let’s briefly review what we’re really talking about. Regular readers of Palm Beach Confidential know that cryptocurrencies run on blockchain technology. Notice I didn’t say “the blockchain.” That’s because “the blockchain” is not a thing. Different cryptos run on different blockchains. A blockchain is like a permanent ledger of accounts that’s been digitized, encrypted, and shared across a network of computers according to a set of software rules. The software rules that run a blockchain take the place of a trusted authority like a bank. The technology is great for running cryptos, but it can do more than just manage currency. The transactions recorded on a blockchain do not have to be financial. They can describe any digital aspect of any asset or transaction. Land titles or global treaties could be recorded on a blockchain, for example. Tech analysts claim that blockchain technology will eventually revolutionize basically everything: financial services, insurance, medical care, social media,
voting, supply chains, data storage, gambling, and on and on. Virtually nothing is beyond the reach of this new revolutionary force. To put it simply, blockchain platforms will bring lower costs and add value to countless industries in the years to come. That’s why we’re seeing so many companies investing in the space. Well-known, large firms like IBM, Microsoft, Walmart, Samsung, and Google are pouring money into blockchain technology. Buying stocks in these types of companies is one way to slip some blockchain exposure into your portfolio. But these companies are so big that the trend is unlikely to move the needle very much in the next few years. So, I’d recommend going after smaller fish. There’s a lot of opportunity here. And it’s growing every day. GMP Capital reports that at least 50 blockchain-related firms are going public in Canada in the coming year. Meanwhile, we’ve seen huge jumps in the stock prices of small blockchainrelated companies here in the U.S. recently. Now, I’m not saying you should go out and buy all the stocks with the word “blockchain” in them. Fundamentals have been thrown out the window for a number of these plays. Today, you see companies with no assets or revenue achieving big valuations on nothing more than the hint of a blockchain promise. In December, for example, a tiny company called Long Island Iced Tea simply changed its name to Long Blockchain and saw its stock rise about 300%. The point is that investors are excited about blockchain technology. And they’re clamoring for ways to play it in the stock market. This bodes well for those of us who are willing and able to separate the wheat from the chaff. In future issues of Palm Beach Confidential, I’ll have specific blockchainrelated stock recommendations for those of you who want to diversify your blockchain holdings or who want to get in on this trend without buying cryptos directly or trading bitcoin futures.
Where to Be Invested Now
How to Navigate Volatility in the Cryptocurrency Market By Teeka Tiwari and Greg Wilson After a massive rally in the so-called alt coins (an alt coin is any coin other than bitcoin), we’ve run smack dab into a good, old-fashioned sell-off. As of this writing, many big cryptocurrencies have dropped as much as 40%. Welcome to crypto! I know this sounds counterintuitive… but you need to welcome these vicious sell-offs. Like a cleansing fire, they clear away the excess optimism, fluff, and chicanery that very often follow a massive bull market.
Sell-offs are a process of moving coins from weak hands to strong hands. Over the last three months, a lot of uninformed money has come into the crypto space, many of whom I would imagine have bought high in the hopes of selling higher and are now panic-selling. If you’ve been with us for any period of time, you’ll remember that we’ve seen far worse markets than this. Last summer, most of our portfolio experienced peak-to-valley drops on the order of 60–85%. Boy, that period produced some interesting feedback emails! But then, like now, I said the same thing: Take a deep breath; the sun will shine again. Rely on your rational position-sizing and just ride out the volatility. I don’t try to time these sell-offs because they’re often driven by what ends up being no news at all. For instance, fears of crypto crackdowns by South Korea, as well as China, are driving the recent sell-off. Well, let’s clear up the fake news. South Korea has said it will not ban crypto trading. But the government insists that exchanges collect identifying information from their customers the same way you would for a normal brokerage account. That is hardly an onerous requirement. As for China, it’s already banned crypto trading and will ban mining. So what’s the news that has the market quaking in its boots? The news is that China now wants to clamp down on peer-to-peer trading through sites like LocalBitcoins. Friends, compared to shutting down all of its exchanges that were running billions of dollars’ worth of trades per day, clamping down on LocalBitcoins (which does $17 million per day) is a nonevent. We view this as a buying opportunity and have adjusted some of our buy-upto prices to take advantage of the pullback. Before this recent sell-off, we had quite a nice rally and used it to “scoop some cream” off of our big winners and duck back into bitcoin. We think bitcoin is really cheap here. The recent surge in the alt coins has also caused some to abandon bitcoin in favor of alts. You can see it by the bitcoin dominance ratio, which measures the bitcoin market cap as a percentage of the entire cryptocurrency market cap. A month ago, it was over 60%. Now it’s under 35%. We’d urge caution. A concentrated portfolio of fast-moving alt coins could result in big losses should the market turn south. That’s why we recommend taking a uniform approach with small, asymmetric bets. By making uniform bets, we spread our risk across our positions. And small, asymmetric bets enable us to handle the volatility. Long-time readers know it’s a strategy that works.
For example, if you had invested $400 in Ethereum at the time of our original recommendation, you would have sold 50% for an 11,000% gain worth $22,000. By selling and moving into bitcoin, not only have you taken some profits, but you’re also ready for our next round of opportunities. Let’s take a look at what’s buyable today. All new actions to take are highlighted in yellow. Bitcoin (BTC) Now consolidating for over a month, bitcoin is out of the limelight. However, behind the scenes, advancements toward scaling bitcoin continue. (We first wrote about them in May.) One scaling solution is SegWit. Today, over 12% of bitcoin transactions are SegWit. We expect that to accelerate as Coinbase announced it would be implementing SegWit in the near future. This will help alleviate the congestion you’ve likely experienced in the network. The other is the Lightning Network, which should be adopted some time this year. Lightning Network will drop transaction costs by 99% and enable instant payments. We believe this will cause BTC to explode higher this year. Action to Take: Buy bitcoin (BTC) up to $25,000. Ether (ETH) On January 4, we issued a profit sell alert on Ethereum (ETH). Congratulations to those who took advantage of our original recommendation. Let’s say you invested $1,000 at the time. If you followed our January 4 instructions, you’d have booked a $55,000 gain and still be sitting on a position currently worth over $58,000. Action to Take: Hold ether (ETH). Monero (XMR) As one of our original picks, we bought XMR in two lots in 2016 for an average price of $8.45. XMR finished 2016 at $13.65, for a nice 62% gain. 2017 was even better as Monero advanced 2,457% to finish the year at $349.03. Congrats to everyone who jumped on Monero. 2018 is shaping up to be another banner year. Developers are working on improvements to security, privacy, and scalability. On the marketing side, Monero plans to continue Project Coral Reef, which has recruited over 50 mainstream artists, including Mariah Carey, to accept Monero. Action to Take: Hold Monero (XMR). Steem Power (STEEM) Steem broke out of an 18-month consolidation when it broke $4 in December. It quickly reached $8 and has since settled in the $4–6 range. One thing we’ve learned over the years is the bigger the base (i.e., the consolidation period), the bigger the breakout. So, we’re holding on tight to Steem.
In January, Steem partnered with Datawallet. With Datawallet, you can create a data profile of yourself, which you can then monetize by sharing it with companies. It’s one step closer to taking back our data from the internet giants. Action to Take: We’re raising the buy-up-to price on Steem Power (STEEM) to $3.50. Lykke (LKK) In 2018, Lykke aims to be the best fiat-enabled and regulated crypto exchange. It also wants to be the first global marketplace to allow easy trading of digitized assets. To that end, Lykke is working on Alpha Engine, an automated trading model that will provide liquidity to the market. Also in the works are cards and payment systems to bridge the crypto and fiat world, adding LTC, ETC, BCH, and ERC20 tokens, and a web-based trading platform. Action to Take: Hold Lykke (LKK). Peerplays (PPY) Last month, we informed you that Peerplays was starting beta testing and its sports betting decentralized application (dApp) called Bookie. In early January, Peerplays announced a partnership with iGaming Creative Agency, Vegas Kings, to build the website. It will go live in the first quarter of 2018 and the Bookie dApp will be launched later in the year. In other news, Peerplays also announced a partnership with eXeBlock Technology. eXeBlock will develop four dApps for the Peerplays platform over the next 24 months. There are now seven dApps being built for the Peerplays blockchain, with more to come. Action to Take: Hold Peerplays (PPY). Neo (NEO) NEO finished the year at $75.96. And those who bought at the time of our original recommendation are enjoying a 60,426% gain. It was a great year for NEO. It successfully rebranded (from Antshares), updated its smart contract infrastructure, and developed the NEP-5 token standard. The NEP-5 standard is like the ERC20 standard for Ethereum tokens. A standard token contract makes it easier to list tokens on exchanges. And that makes it easier for the NEO platform to launch ICOs. NEO now has over 25 projects preparing to launch ICOs on its platform in the first quarter of 2018 alone. Continue to hold NEO. Action to Take: Hold Neo (NEO). Gas (GAS) All of the projects coming to the NEO have one thing in common: They’re going to need GAS to operate on the platform. That’s why on January 5, we raised the buy-up-to price to $45.
Action to Take: Buy Gas (GAS) up to $45. Factom (FCT) Factom got a boost to start the year as security expert John McAfee made it his “coin of the week.” He noted Factom’s partnerships with the Bill Gates Foundation and U.S. Department of Homeland Security. And he mentioned how Factom is one of the only fully functional cryptocurrencies in existence today. Thankfully, we told you about all that nine months ago, when Factom traded at $4.20. McAfee’s tweet sent FCT briefly over $80, and it now trades around $65. This one is now above our buy-up-to price. Wait for a pullback before getting in. Action to Take: Buy Factom (FCT) up to $50. Ethereum Classic (ETC) Ethereum Classic finished the year by releasing its Daedalus wallet. Keep in mind it’s new software, so use it for low-value transactions for now. The work on Ethereum Classic will accelerate in 2018. Lead developer Charles Hoskinson noted how over 2017, they grew the development team and now have eight full-time developers. And it will continue to grow over 2018. On tap for 2018 is achieving Ethereum Classic scalability through the use of sidechains. (A sidechain is a separate blockchain attached to the parent blockchain.) The team will also be working with third-party developers to build apps on top of ETC. And the team plans to develop proof of concepts for how ETC will be used for the Internet of Things. Action to Take: Buy Ethereum Classic (ETC) up to $25. Ripple (XRP) Congratulations to those who followed our January 4 profit sell alert. We sold 50% of our Ripple position, locking in gains of 1,140.7%. That means if you invested $1,000 in Ripple, you were just able to take out over $5,700. Plus, you still have a stake worth over $3,000. Action to Take: Hold Ripple (XRP). Dash (DASH) Dash continues its rapid global expansion. Last month, we filled you in on Dash’s partnership with Uphold. That will enable 94% of the world’s population to buy DASH. Plus, we informed you of Dash’s partnership with KuvaCash, which seeks to bring DASH to Zimbabwe. This month, Dash partnered with Spanish firm Bitnovo. It will enable DASH usage in over 10,000 retailers throughout Spain. Latin American cryptocurrency exchange BitInka also added Dash. Now citizens of Argentina, Bolivia, Brazil, Chile, Colombia, Peru, and Venezuela will be able to purchase DASH.
Action to Take: We’re raising the buy-up-to price on Dash (DASH) to $800. OmiseGo (OMG) The OmiseGo software development kit (SDK) recently went from alpha to closed beta testing. This is crucial, as it’s one of the final steps before releasing the SDK. Once released, developers will be able to incorporate the OmiseGo wallet into their own programs. Further, one of OmiseGo’s strategic partners, a large multinational company, is now using the OmiseGo SDK to develop one of the first live use cases. Expect more news in the first quarter of 2018. Action to Take: We’re raising the buy-up-to price on OmiseGo (OMG) to $20. ZenCash (ZEN) When we originally bought ZEN, we put on just a half position due to its volatility. The plan was to buy the second half on the first 50% pullback from the high after we buy. ZEN never did fall 50%. But with the positive developments we see in the pipeline, we wanted to make sure everyone got a full position. So on December 22, we put on the second half of our ZEN position. It’s now well above our buy-up-to price, but continue to hold ZEN if you own it. Action to Take: We’re raising the buy-up-to price on ZenCash (ZEN) to $40. Storj (STORJ) Storj recently released an upgraded billing platform, and it now accepts STORJ as a form of payment for storage space. It’s part of Storj’s plan to increase the utility of its token. Plus, for a limited time, those who pay in STORJ will receive discounted pricing. The company also announced a bounty program that covers everything from development to marketing. The way it works, individuals can earn STORJ for completing specific tasks. Storj is looking to improve its Libstorj library, provide more translations, do marketing videos, and more. Expect to see more of Storj in the news cycle in 2018. Action to Take: Buy Storj (STORJ) up to $1.
Short-Term Cryptocurrency Portfolio
Iconomi (ICN) Iconomi and the crypto funds on its platform finished the year with $200 million in assets under management. That’s an impressive feat considering it’s been open less than half a year. And it continues to improve the platform. DAA managers can invest in even more coins now. Iconomi added 15 new coins to the platform last month. Iconomi is now open to users in 187 countries (but not the United States). That may not matter soon, as funds that meet the minimum requirements will get tokenized. And that means we’ll be able to buy them on cryptocurrency exchanges like Binance. Action to Take: We’re raising the buy-up-to price on Iconomi (ICN) to $2.
NEM (XEM) We added NEM to the short-term cryptocurrency trading portfolio in early June. At the time, it traded around 24 cents. It then went sideways for the next six months. Kudos to all the patient holders out there. We sent out a profit alert on January 4, selling 50% of our NEM position at $1.69 and locking in gains of 609.2%. Action to Take: Hold NEM (XEM). Wings (WINGS) Wings, the blockchain platform dedicated to the launching, backing, and promoting of new cryptocurrency projects, is solving one of the big pain points for new projects: getting their token listed. In December, Wings announced a partnership with Aurora, a decentralized cryptobanking and financial platform. One of its products is IDEX, its decentralized exchange. Going forward, all projects launched through Wings will also get listed on Aurora’s IDEX exchange. Action to Take: We’re raising the buy-up-to price on Wings (WINGS) to $1. Lisk (LSK) Lisk holders were rewarded for their patience when we sent out a profit sell alert January 4. By selling 50% of our LSK position, we locked in profits of 1,643.8%. Remember, we advised converting your LSK back into BTC. And holding onto that BTC for future opportunities. Action to Take: Hold Lisk (LSK). Waves (WAVES) Waves finished the year with a bang. It released its new consensus algorithm, Waves-NG, which means Waves can now process 1,000 transactions per second. It also partnered with Tokenomica to provide a 100% compliant legal framework for token crowdsales, including private equity crowdsales. Then it launched the Waves Lab blockchain incubator. The incubator will provide up to $300,000 for pre-ICO startups. And finally, Waves launched a blockchain venture capital fund called Basics. The fund will focus on investing in promising blockchain infrastructure projects. Action to Take: Hold Waves (WAVES). Basic Attention Token (BAT) Brave, creators of the Basic Attention Token and Brave browser, announced a partnership with DuckDuckGo, an internet privacy company. The Brave browser will now have private search tabs, much like Google’s incognito mode. The integration will happen in the first quarter of this year. Action to Take: Buy Basic Attention Token (BAT) up to $0.35. Syscoin (SYS)
Syscoin’s parent company, Blockchain Foundry, recently raised $3.3 million in a private placement. The funds will be used to expand the software development team, build new proprietary software products on the Syscoin stack, and for Blockchain Foundry to go public in the first quarter of 2018. Action to Take: Buy Syscoin (SYS) up to $0.30. MaidSafeCoin (MAID) To end the year, MaidSafeCoin launched its Community Engagement Program. The program will encourage developers to propose new innovative functionalities for the platform. The way it works is that applications for new projects can be submitted on the SAFE Network Forum. Requests that get enough support will then move to the proposal stage. And the winning project will be awarded MAID for funding. Action to Take: Buy MaidSafeCoin (MAID) up to $0.50. Aragon Network (ANT) Aragon just established Aragon Nest, a grants program to support the development of the ecosystem. The program is being done in conjunction with Placeholder Capital, a cryptocurrency hedge fund. It’s led by Joel Monegro and Chris Burniske. Monegro is a former analyst with venture capital firm Union Square Ventures. And Burniske is the former lead crypto analyst at ARK Investment Management. The goal of the grants program is facilitating projects that will not only help Aragon, but the Ethereum network as a whole as well. Another thing to watch with Aragon is its transparency report. Aragon raised 275,000 ETH in its token sale when ETH traded around $125. It’s much more valuable now. As of January 2018, Aragon still holds over 262,000 ETH as well as 7.4 million ANT. Combined, they’re worth $375 million. Meanwhile, Aragon’s market capitalization is $224 million. Action to Take: We’re raising the buy-up-to price of Aragon (ANT) to $8. SALT Lending (SALT) On January 8, we raised the buy-up-to price of SALT Lending. The platform successfully launched on time at the end of December. In the first week alone, it funded $7.1 million in loan requests and received funding requests for another $550 million. That’s more demand than anyone expected. Further, the company announced that loans could be paid using SALT tokens. Here’s why that’s important: The retail rate (the rate SALT Lending will accept) is $27.50. At the time of our alert, SALT tokens were trading around $11 in the open market. As news of this deals spreads, we’ll see the price of SALT reach parity with the retail price.
Action to Take: Buy Salt Lending (SALT) up to $20. Stellar Lumens (XLM) We’ve now successfully traded XLM twice for gains of 207.2% and 134.8%, both in less than a month. On December 20, we put out a third buy alert on XLM. It has since moved well beyond our buy-up-to price. But continue to hold. We expect good things in 2018. Stellar recently completed its Stellar Build Challenge. It’s a contest for developers to build applications on the Stellar platform. Stellar judges awarded 5.7 million XLM across 35 projects. Also, for those of you who use Ledger devices for storage, XLM is now supported. Action to Take: Hold Stellar Lumens (XLM). Aion (AION) On January 2, we sent out a buy alert for Aion. Its blockchain network focuses on interoperability. It’s developing a protocol to seamlessly integrate blockchain systems. Whoever can solve this problem will become very valuable. We like that Aion is a project of Nuco, a blockchain infrastructure company that’s also a leader of the Enterprise Ethereum Alliance. Action to Take: Buy Aion (AION) up to $10. EOS.IO (EOS) On January 4, we sent you a profit alert, selling half of our EOS position and locking in gains of 696.5%. As an example, someone who invested $400 into EOS at the time of our recommendation would have taken profits of $1,393. That more than covers your original investment and gives you firepower for your next move. Plus, you still have an EOS stake worth $1,590 at the time of this writing. Action to Take: Hold EOS.IO (EOS). Binance (BNB) Kudos to all those who jumped on our December pick, Binance. We’re now up over 1,000%. The cryptocurrency exchange is a classic pick-and-shovels play on the industry. As more people come into the industry, trading volumes will rise, and Binance will be there to capture a good chunk of that volume. Already, Binance has increased its daily volume from less than $100 million in July 2017 to $6 billion per day now. Action to Take: Hold Binance (BNB). Qtum (QTUM) We recently added Qtum to the short-term portfolio on January 8. Action to Take: Buy Qtum (QTUM) up to $65. Dragonchain (DRGN)
We recently added Dragonchain to the short-term portfolio on January 8. Action to Take: Buy Dragonchain (DRGN) up to $5. Worldwide Asset Exchange (WAX) We recently added the Worldwide Asset Exchange to the short-term portfolio on January 8. Action to Take: Buy Worldwide Asset Exchange (WAX) up to $1.40. Cardano (ADA) We recently added Cardano to the short-term portfolio on January 12. Action to Take: Buy Cardano (ADA) up to $0.90. Power Ledger (POWR) We recently added Power Ledger to the short-term portfolio on January 17. Action to Take: Buy Power Ledger (POWR) up to $0.85.
Stocks
Invitae (NVTA) Invitae announced preliminary full-year 2017 results. Volume grew to over 134,000 samples for year-over-year growth of 127%. And revenues grew 136% to $59 million for the year. For 2018, Invitae is expecting to grow samples to at least 250,000 and revenues to over $120 million. Despite the good news, Invitae dropped on the news. Wall Street was expecting a better 2018 revenue growth rate. Keep in mind, though, that this is just a preliminary assessment and management has yet to finalize expectations for the year. Action to Take: Buy Invitae (NVTA) up to $12. Connecticut Water Service (CTWS) On January 17, we closed out of our long-term holding CTWS. We locked in a 62% profit. Action to Take: Sell Connecticut Water Service (CTWS).
