Timing is everything, especially in the financial markets.
Oftentimes you’ll hear gurus talk about their perfect trade or investment that they called.
Yet, most rarely discuss the ones with poor timing, which is many of them.
If you don’t mind, I’d like to share a recent one that I timed poorly.
My Pain, Your Next Big Profit
In the February issue of Wealthy Tech Investor, I recommended a new position in a high-risk, high-reward stock with a unique perch in the 5G landscape.
It’s easy to provide internet service on land, but difficult to provide internet on a plane 30,000 feet above ground & moving 500 miles per hour!
If you’ve taken a transatlantic flight in the past 10 years, you’ve likely seen this for yourself.
If you tried to get on the internet you either didn’t have it available at all or it cut out on you.
Gogo Inc. (Nasdaq: GOGO) is the largest pure-play on what’s known as "In-flight Connectivity", or IFC.
GOGO makes it possible to have high-speed internet access while flying the friendly skies.
GOGO is eliminating these "dead zones" with their satellite-driven 2ku installations, currently in over 650 planes with another 1,400 in the backlog.
But the space-age difficulties GOGO solves aren’t the only thing that makes this company so interesting.
That was until the pandemic hit and halted everything.
If no one is flying, then no one is using Wi-Fi.
Grab a piece of paper and pen to write this down…
Because you’re about to see the name and ticker symbol of the ONLY 5G STOCK every investor should own.
You can get the name and ticker of this company right here, no strings attached. But you better act fast…
Because the Federal Communications Commission, the government agency in charge of 5G, just scheduled a major announcement that would send shares soaring once announced.
This caused the floor to drop on shares, sinking to a low of $1.33.
Why It's A Great Buy Here
Gogo stock, in and of itself, is a long-term option play.
GOGO’s market cap sits at $288 million, with $1 billion in net debt, or an enterprise value of $1.288 billion.
When I crunch my numbers, the stock value should be around $9.00 per share.
The company has restructured its debt, but paying 10% on its bonds is expensive in this interest rate environment.
The company is looking to cut costs by any means necessary and that could be a rolling back plan on its launch of a true 5G network in 2021.
People will fly again and there will be Wi-Fi on planes.
How quick that occurs is the unknown and why shares trade at current prices.
But the potential for gains of over 200%, 300% or 400% is the payoff.
In the short-term, the biggest stock gains occur when most investors think something is WRONG.
Look at shares of Tesla (NASDAQ: TSLA) since December. That’s what happens when a large group of people is wrong on a short thesis.
Shares can go to zero, but for me, the upside will be enormous from these levels.