The #1 Stock for The 5G Rollout: A Tiny $7 Company Set Soar

February 1, 2022

Congratulations! You’ve arrived at the 5G Rollout just in time.

And your move is a smart one, considering what’s about to happen. I’m talking about the 5G wireless technology revolution that’s about to hit its stride.

It’s going to dwarf anything we’ve ever seen and make the current wireless technology we use obsolete throughout the nation and the world.

This is nothing less than the biggest tech rollout in history, and it’s going to cover every square inch of real estate in America.

IHS Global Insight sees this opportunity as on par with the launch of the printing press, electricity, and steam engine.

When it comes to using 5G, the upgrade will be beyond noticeable.

At 600 times faster than what currently exists, the new system will allow you to download a movie while you stand in line at the store in a matter of three seconds instead of the six minutes it takes now.

The level of infrastructure that’s going to be needed for this upgrade – everything will have to be updated for 5G – is staggering, with a price tag over $1.4 trillion.

And we’re sitting right on the cusp, and you’re just in time to take advantage.

Investors and consumers alike have been waiting and speculating for the past two years about when we would finally see the impact.

Well, carriers and suppliers have been quietly laying the foundation to revolutionize wireless and the world around us. And we’re right at the magic moment when the 5G wireless technology revolution hits its stride.

Do you remember how 4G changed the world? Not just your mobile wireless experience, but the world?

Now that we’re on this side of the technology it’s hard to remember the lag of its predecessor.

We now take the app economy for granted, but it could not exist on the 3G technology that was 50 times slower. That additional speed unlocked the ability for mobile TV, video conferencing, and enough speed to support the convenience-oriented apps we use every day.

According to Statista, there are about 21.5 billion interconnected devices in the world. Bu, 2025 that number is projected to reach 30.9 billion. And many of these are hardwired. The number of Internet of Things (IoT) devices is increasing faster than 4G can handle.

That’s where 5G comes in and the upgrade will be beyond noticeable.

The Need for Speed

At 600 times faster than what currently exists, the new system will allow you to download a movie in a matter of seconds instead of the six minutes it takes now.

The improved speed and latency unlock a future that we have only dreamed of for decades –a fully digitalized and connected world. 5G will be the driver behind robotic control, virtual reality monitoring, and areas that previously weren’t able to be addressed.

Farmers will be able to connect to their crops and livestock with real-time data processing capabilities. This is true in telehealth, mining, oil and gas operations, and even manufacturing. Data is key and being able to collect, gather and process in real-time is the future. And that’s what we can expect from 5G.

According to a recent report from Grand View Research, the global 5G services market is expected to become $664.75 billion from 2021 to 2028. That equates to a compound annual growth rate of 46.2 % over the next 8 years.

The Growth is Just Beginning

This will be nothing less than the biggest tech rollout in history, and it’s going to cover every square inch of real estate in America.

The level of infrastructure that’s going to be needed for this is staggering, with a price tag of at least $1.4 trillion.

Overall, the 5G rollout is expected to generate some $12.3 trillion of global economic output over the next decade. That’s bigger than the GDP of Germany, France, and Japan, combined. 

When it comes down to it, this technology will impact just about every sector you can imagine – I’m talking agriculture, construction, education, manufacturing, real estate, utilities, and more.

And it’s already underway. Right now, some 25,000 new 5G towers are being installed. We’ve seen telecom operators worldwide actively installing 5G macro base stations to provide consumers with network improvements over the past two years.

2021 was the year of laying the groundwork but 2022 will be the year when most people actually start to feel the 5G speed boost in mobile performance. The real impact of 5G comes down to more than mobile carriers and improved antennas.  

Over 300,000 “small cell” boxes are being hung up on street lamps, telephone poles, and rooftops across America. Maybe you’ve already seen them.

And that’s just the beginning. The 5G equipment market is poised to grow by $24.25 billion during 2021-2025. That’s a growth of 67% every year.

Small cells will play an essential role in 5G networks. They have an easier deployment and cheaper costs compared to macro base station stations. IDTechEx forecasts that there will be around 45 million 5G small cells deployed by the end of 2031.

That’s where this tiny company comes in…

I’ve been following the 5G industry closely for years since I could see its importance even back then. My team and I have vetted an entire generation of 5G stocks that are poised to make investors rich.

We have seen upfront and personal dozens of new technologies that are expected to scale thanks to 5G. And time after time we keep coming back to this one company.

This firm helps make the tiny device that will make 5G possible.

This “magic” device is a critical component to every 5G tower and small cell. In fact, this is still my #1 technology stock when it comes to 5G.

#1 Stock for the 5G Rollout

RF Industries Ltd. (Nasdaq: RFIL) is a savvy micro-cap in the 5G sector. This San Diego-based firm specializes in a broad range of interconnect products including a tech platform known as a distributed antenna system (DAS).

Think of a DAS as an array of low-powered beacons that help spread and focus wireless signals. It's a vital way to deal with isolated spots of poor coverage inside a large building.

RF Industries also makes coax cable assemblies, fiber optic cable assemblies, cable harnesses, and components. These products are used in aerospace, defense, transportation, utilities, and other industries that are also gearing up their own 5G applications.

One specific example is the company’s small cells. They are pole-ready and reduce installation time from days to hours. By utilizing clean aesthetics, the company has limited pushback from municipalities by eliminating “mess on a pole”.  

5G’s multiyear buildout will require hundreds of thousands of components needed to connect, at a minimum…300,000 new antennas and scores more small-cell transponders. In other words, this is a target-rich sector where a savvy company like RFIL can really clean up. And it’s doing just that.

For the most recent quarter, the company reported net sales of $15.3 million. That’s an increase of 38% over the previous quarter and 60% over the same quarter last year.

President and CEO Robert Dawson commented, “We are pleased to report strong sequential and year-over-year revenue growth for the third quarter, and the highest backlog in the companies history of $31.5 million at quarter-end. We showed significant year-over-year growth in all markets and channels, and we continued to see signs of recovery in the wireless carrier ecosystem spend…”

The record backlog is fueled by two multi-million-dollar orders for the Opitflex hybrid fiber cable solution. These came from the company’s new tier-1 wireless carrier customer. And it’s a testament to the increasing demand for products as wireless carriers accelerate their 5G infrastructure build.

Sales are expected to increase in the remainder of 2021 and beyond. The spending on 5G infrastructure has never been a matter of if, but instead a matter of when. And the company continues to see growth profit margins of around 30%.

On top of all this, the company has been driving the development of a full line of next-generation products for the small cell and DAC markets. It sees this immense opportunity and is already thinking ahead. Some of these new products are already in lab and field trials with multiple customers. The plan is to bring them to market within the next few quarters.

The company also hinted that it has plans to make an acquisition of a much more meaningful size.

There was no specific update on that, but the management commented that it continues to add to the list of potential candidates.

RF Industry’s market cap continues to grow rapidly. It’s currently around $80 million. And its total addressable market could reach $171.36 billion in 2024.

If it grabs just 0.5% of that total market, its annual revenue will increase by 277.3% in just a few years – and so could its share price.

RFIL is the world leader in supplying companies around the globe. And it has secured a global army of telecom giants – the biggest in the world – rushing to spread its technology around the planet...

This is just the beginning of RFIL’s potential. And I think we could see a staggering, mind-blowing revenue gain of 3,300%...and that will turn into a nice return for investors.

Action to take:

Buy shares below $10 per share

Joshua M. Belanger
Joshua Belanger is founder of CounterVest and the editor of Hot Money Trader. He has been providing ordinary investors blockbuster returns since 2008. In 2018, the average return of Hot Money Trader beat the markets by over 15%