Why anyone looking for massive gains needs to consider “Sleeper Stocks”

Why anyone looking for massive gains needs to consider “Sleeper Stocks”

Where Innovation Meets Investing

Most people get the David vs. Goliath story all wrong…

And it’s a shame, because knowing the truth behind the story—and applying it to the stock market—can put you ahead of 99% of investors.

Let me explain…

Goliath was bigger, stronger, and better equipped. He wore shimmering armor and planned to kill David with his giant sword.

David was a shepherd. He refused to wear armor… and his main weapon was a sling.

So it shocked everyone when David fired a rock from his sling, cracked Goliath in the forehead, and killed him on the spot.

It’s the classic underdog tale. Except…

  • Most people have it all wrong.

David wasn’t really the underdog.

He was the favorite!

Goliath may have been big and strong. But he had two fatal flaws.

He was slow. And he was arrogant.

Meanwhile David was quick, smart, and adaptable. He exploited these advantages to kill Goliath before the giant could even get within striking distance.

Believe it or not, this same situation plays out in the stock market all the time…

At any given moment, there are dozens of tiny stocks that no one pays much attention to.

But because these companies have hidden advantages—like David—they’re highly likely to defeat their larger competitors and soar in price.

  • I call these “Sleeper Stocks”…

Most investors assume these tiny stocks are too small or weak to slay the Goliaths of their industries.

But just like David, they have advantages over their bigger, slower competitors.

They’re faster, nimbler, and more innovative. And they often change the game with superior technology.

Take Netflix (NFLX), for example.

Netflix put the old movie rental industry out of business.

But back in 2003, no one saw this coming.

Blockbuster Video was Goliath.

Its 8,700 stores generated $1.4 billion in operating cash flow.

But Netflix’s internet-based business eliminated the need for physical stores. Customers simply rented movies online for a cheap monthly subscription fee.

Unlike Blockbuster, Netflix wasn’t weighed down by thousands of building leases.

It didn’t have tens of thousands of employees to pay.

Being small and nimble, Netflix rapidly innovated. It tested new ideas using computer code.

It launched its video streaming service in 2007. Now customers didn’t even need to wait for a DVD in the mail. They could simply watch a movie over the internet.

And Netflix’s predictive artificial intelligence technology got people addicted to the service.

It was all too much, too fast for Blockbuster.

In 2010, Blockbuster filed for bankruptcy.

Netflix boomed, handing investors enormous returns.

Just $10,000 invested in Netflix in 2008 would be worth almost $1.3 million today.

That’s what’s possible when you invest early in tiny companies with massive, but hidden, advantages over their bigger competitors.

And Netflix is far from the only example…

  • Take eXp World Holdings (EXPI), one of the Sleeper Stocks I recommended to my Project 5X members back in June 2019.

Think of eXp as the Netflix of real estate.

The company’s business is very similar to Goliath real estate companies like Keller Williams, Century 21, and ReMax.

These companies all provide real estate agents with offices, equipment, training, advertising, and support, generating sales leads. In exchange, they take a cut of the commission when an agent sells a property.

The difference is eXp doesn’t have physical offices. Instead, it provides support to its agents through its virtual world.

This lets agents work with anyone, from anywhere, on anything, at any time.

All it takes is a computer and an internet connection. With that, you can log in as an avatar—an icon that represents you in the virtual world.

It’s like a video game, but for work.

There are areas and offices for private meetings. The offices and board rooms all have virtual screens. This lets you share your screen with the group and give presentations.

This virtual world allows eXp to avoid expensive overhead like rent, utilities, insurance, maintenance, office equipment, and supplies.

And because the employee side of the business takes place in the virtual world, eXp can compensate its agents much better than other brokerages. It offers revenue-sharing opportunities and stock ownership packages.

The lure of more money gives agents a big incentive to join eXp. That’s led to massive growth in the number of eXp agents. And the more agents it has, the more money the company makes.

When I recommended EXPI to my members, it was a Sleeper Stock worth just $600 million…

…or about one-seventh the size of the smallest company on the S&P 500.

But because it was nimbler than the competition and changed the game with technology, Project 5X members walked away with a 376% gain in just 16 months.

  • Atomera (ATOM) is another Sleeper Stock I recommended to my Project 5X members back in May 2020.

It used its small size and nimbleness to make a new type of semiconductor.

Put simply, the company invented a breakthrough technology that makes computer chips much more powerful, while consuming much less energy.

Keep in mind, the semiconductor industry is dominated by Goliaths like Intel. But tiny Atomera, a Sleeper Stock hardly anyone’s heard of, achieved the breakthrough.

When I recommended Atomera just 15 months ago, it was a tiny company worth just $145 million. Today, Project 5X members are sitting on a 200% gain on the stock, with much bigger gains expected soon.

Look, I understand that it’s easy to bet on the “Goliath stocks.” They’re big, strong companies. And a lot of them are good investments.

But you’re not going to make truly life-changing gains by buying Goliath stocks like Amazon or Apple. Because of their large size, the most you can really hope for is a double or triple.

You can, however, book massive returns by betting on the right Sleeper Stocks...

The time to buy them is now.

I know because they recently flashed “green” on my bulletproof system that I’ve developed over the past 20 years. This system pinpoints the world’s most explosive Sleeper Stocks—ones primed to surge 250%, 500%, even 1,000%.

Specifically, it tells you the exact moment these tiny, little-known companies become strong enough to overtake their giant competitors.

Sleeper Stock #1 is the first and only company to combine memory and two million tiny processors on a single chip. My target gain: 600%.

Sleeper Stock #2 is a $100 million company disrupting the $40 billion virtual meetings market. I believe this is the biggest “work from home” breakthrough ever, and my target gain is 500%.

Finally, Sleeper Stock #3 is the world’s only blockchain-based payment processor. Target gain: 600%.

If you missed my presentation yesterday, you can watch a free replay—and get all the information on my system and these 3 stocks—right here.

And if you prefer a transcript version of my presentation, you can access that by clicking here.

Regards,

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Chris Wood
Editor, Project 5X

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