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An InvestingAnswers Exclusive Broadcast:
The 7 Companies Predicting the Future And Beating the Market By as much as 13-to-1
Thanks to secret facilities in hidden locations across America, a few
companies have accurately predicted economic downturns, flu outbreaks,
traffic jams, deflation, and more.
Now's your chance to get in on them in the early stages of what analysts predict will be a 5,000% growth trend lasting through 2020.
Garrett: Hi, I'm Garrett Clark, Publisher of InvestingAnswers. And
I'd like to welcome you to an InvestingAnswers exclusive broadcast:
"The 7 Companies Predicting the Future."
Every year, companies across America spend millions of dollars and countless hours trying to figure out The Next Big Thing.
And almost all of them will flop. Three out of four startups fail within just a few years.
But a very small group of companies and organizations have proven that they can predict exactly what's going to happen in the future -- with amazing accuracy.
For example, in 2009 one company published the precise location of the next flu outbreak weeks in advance -- without medical records or poking anyone with a needle.
In September 2008 another warned about deflation two months before the Bureau of Labor Statistics.
Yet another company's known which firms will report lower earnings than analysts expect -- long before earnings are reported.
In 2011, yet another company spotted that the U.S. economy was in decline, even though politicians denied it.
But that's not all. They've also predicted traffic jams in over 100 cities, flight delays, the next Hollywood blockbuster (and flop), when your car will break down, which hospital is better prepared to save a baby's life, and even who you'll fall in love with.
As one confident CEO boasts, "We know what you're going to do tomorrow."
And as Vagelis Hristidis of the University of California says, "these findings have the potential to have a big impact on the stock market."
Imagine the kind of gains that could come from investing in a company that knows beforehand what will happen over the next month… year… even 10 years.
When the next market crash is likely to come...
Which will be the fastest-growing companies...
Which retail stores will have the most customers...
A small handful of companies trading on American stock exchanges are regularly making these kinds of predictions -- with alarming accuracy -- to enrich themselves and their shareholders.
How on Earth is this possible?
To answer that question, we've brought in an expert .
Joining me now is a woman who's known about these companies with predictive abilities long before they were on anyone's radar. She's walked their halls, spoken with executives, and had one-on-one meetings with key personnel.
Nancy Zambell, welcome.
Nancy: Glad to be here, Garrett.
Garrett: Now Nancy, for over 20 years now, you've worked with all kinds of companies, large and small. You were an early adopter of what's now known as "boots-on-the-ground" research. Meaning that you've traveled from state to state visiting companies.
You've published literally thousands of pages of investment advice. And your track record is one of the best I've ever seen. On average, your recommendations have seen, what, around 28% returns each over the 12 years you've run investment advisories? And over that time, a full 70% of your 155 picks were winners.
Nancy: That's right.
Garrett: And I might add that some of those picks shot up as much as 224% in less than a year.
But for the last several months you've given special attention to seven companies that, as you say, can "predict the future."
Nancy: Yes, that's right, Garrett. They've proven, and this is documented, that they sometimes know what's going to happen long before anyone else.
They've known about natural disasters...
Which books you'll read...
Whether or not someone has diabetes...
If a car is a few miles shy of a major breakdown... all sorts of things.
And as you can imagine, they've been a boon to shareholders.
One has returned 957% over the past decade. That's more than 15 times the market.
Another nearly doubled the market in 2013, and has returned 663% in 10 years.
But that's just the tip of the iceberg.
Experts believe they're in the early stages of a 5,000% growth trend that's expected to last through at least 2020. So this opportunity is still in its infancy.
And I should mention, too, that these are not small, risky penny stocks. These are industry leaders. One is a $101 billion giant with 41 years of experience.
Another is generating profits of over $12 billion a year.
So again, I'm not talking about risky companies.
Garrett: And some of the world's richest and most successful businessmen are falling all over themselves to invest in this opportunity, right?
Nancy: Yes, names like Max Levchin and Peter Thiel, who are the billionaire co-founders of PayPal. Jeff Hawkins, who created the Palm Pilot. George Soros has around $145 million invested. Billionaire Ken Fisher is in about $598 million.
And The New York Times reported this past October that, "it's captured the imagination of some of Silicon Valley's most well-known venture capitalists."
Garrett: Good, and I'm going to ask you to talk more about that in a minute.
But first, let's answer the big question...
How can these companies predict the future?
Nancy: The answer lies thousands of miles from Wall Street.
Garrett, let me show you and our viewers a picture of some seemingly ordinary buildings.
They look like your average, ordinary industrial warehouses, right?
Garrett: Right. Dime a dozen.
Nancy: But the truth is, they're anything but ordinary. These are some of the most powerful -- and secretive -- buildings in the world.
You won't find any company names or logos on them. In fact, you probably won't be able to find them at all. They're built far away from the general public. Mostly in small, rural towns in hidden corners of America's heartland.
Sometimes their locations have even been removed from Internet search tools like Google Maps.
Garrett: Why so secretive?
Nancy: Because these buildings are the key to predicting the future, which is why I call them "Prediction Plants."
Thanks to what goes on inside, companies know all sorts of things...
One company can spot signs of an oncoming infection in certain newborns an entire day before most hospitals can.
Another can predict how likely you are to cancel your cell phone service -- possibly even before you've given it serious thought.
Others have predicted the weather accurately up to 40 days in advance. I don't know about you, but my local weatherman can barely get tomorrow right.
Thanks to these plants, companies can predict if someone's about to have an asthma attack...
Whether or not an employee will quit his job in the near future...
How high a runner's heart rate will probably climb during his next workout...
One utility company even predicted which manholes were set to explode in New York City in 2009. That knowledge has saved countless lives, and millions of dollars.
And believe it or not, some folks even appear to be on their way to predicting which way stock prices will go. In a test, they were able to beat the market by as much as 10% over a four month period.
Of course, no one's figured out exactly how to predict which way stocks will go all the time… yet.
And none of this would be possible without these "Prediction Plants."
Garrett: So what goes on inside? These don't sound like any plants I've ever heard of.
Nancy: You're right, they're not your typical plant. They cost upwards of $1 billion, and you won't find forklifts and heavy machinery inside.
And like I said, the companies that own them are extremely secretive.
For example, there's one "Prediction Plant" in rural Oregon. You can't find it on Google Maps. It's been removed. There's no name on the building, either.
If you happen to locate it, you're welcomed by double fencing, colossal security lights, and a guard station as big as a house.
Garrett: Sounds like a prison.
Nancy: That's exactly what it looks like.
Employees have to pass a retina scan to enter. No outsiders are allowed in -- not even governors and senators.
And the reason is, they're trying to keep what's inside a secret.
Andrew Blum , a man who made it as far as the outer walls, said the things inside these buildings "have become like the formula for Coke, among the most important corporate secrets."
Garrett: So that explains why we don't hear much about these plants in the mainstream media.
Nancy: That's right.
Garrett: And the secrecy makes sense. I mean, we're talking about predicting the future. Anyone who knows how to do it is going to try and keep it a secret.
Nancy: But here's where it gets really interesting, Garrett. As we all know, it's hard to keep secrets -- especially in this day and age.
Well, a few ex-employees and others -- mostly speaking on condition of anonymity -- have revealed what's inside these plants.
It turns out, these facilities contain just two main items: supercomputers and black boxes.
Garrett: Supercomputers and black boxes.
Nancy: Yes. Thousands and thousands of each, stacked floor to ceiling, in rooms as big as football fields.
Garrett: And with these two things, they can predict the future?
Nancy: That's right. They can predict whether or not you'll default on your mortgage...
Whether or not someone will commit a crime -- and what crime he'll commit.
They can even tell if you're lying with 82% accuracy -- even without hearing a word you're saying.
Garrett: So how exactly do they do it?
Nancy: Let me take each item one at a time, starting with the supercomputers.
These computers give the phrase "state of the art" a whole new meaning. You can't buy them. Nor would you be allowed anywhere near them.
One company is so paranoid about others stealing its computer technology that it keeps certain parts of its plants pitch black. Workers have to attach headlamps like miners to see what they're doing.
And the reason is because these computers are so advanced.
According to Oren Etzioni -- a Harvard grad who's started and sold prediction companies for as much as $110 million -- the computers can do things that "would have been impossible" just a few years ago.
Garrett: What kinds of things?
Nancy: The main thing they can do is get smarter. They can "learn."
There have been a few well-publicized cases of companies showing how computers do this...
Garrett: I was gonna say... It sounds vaguely familiar.
Nancy: For example, a few years back, IBM programmers built a supercomputer that could learn and challenged the world's top chess player, Gary Kasparov, to a match.
The first year, Kasparov won.
But the computer learned from the experience.
It analyzed all its mistakes and figured out better moves. When they had a rematch the next year, the computer won in a landslide.
And if they were to play again today, it would be literally impossible for the computer to lose. It can analyze over 200 million moves every second, and learn as it goes. The computer would play a completely flawless game.
Garrett: Didn't IBM show another example of a computer's ability to learn on Jeopardy?
Nancy: Absolutely; that's one of my favorite shows. Yes. IBM challenged Jeopardy legend Ken Jennings to a match against another supercomputer. Throughout the match, the computer was able to learn, and it won by a country mile.
Garrett: Okay, so computers really are able to get smarter.
Nancy: But beating people at chess and Jeopardy is just the beginning, Garrett.
Some experts believe a computers' ability to learn will have them replacing humans in more and more things. Oxford professor Viktor Mayer-Schonberger boldly predicts:
"In the future -- and sooner than we may think -- many aspects of our world will be augmented or replaced by computer systems that today are the sole purview of human judgment."
And as I've shown you, the supercomputers housed in Prediction Plants are able to do even more impressive things than those IBM computers.
They can predict things like when you'll go to the grocery store, and how much money you'll spend...
What web page you're about to visit...
Even the date and time of the next local crime spree.
All they need are the right "bits"… which is where the black boxes come in.
Garrett: Yes, explain the black boxes.
Nancy: Each black box is full of millions of tiny bits of information. I just call them "bits," for short.
Bits haven't gotten a lot of broad attention yet in the mainstream press. But "in the know" people are making some big comparisons.
The European Consumer Commissioner says that bits are "the new oil."
Kenneth Cukier of The Economist writes that bits are "like a magical diamond that keeps giving."
And while talking about the search for more bits, former Columbia professor Eric Siegel writes that "we have ourselves a genuine gold rush."
Garrett: So where do these bits come from?
Nancy: From you, me, and everybody else. We create them. Every time you click on a website, surf the Internet, buy something online -- pretty much any time you do anything on a computer -- a bit is created.
Garrett: And they eventually make their way into black boxes at Prediction Plants?
Nancy: That's right. They basically travel from our computers through the Internet and wind up in these black boxes. That's where they're stored.
Now, in the old days, you couldn't do much with the bits. Computers weren't powerful enough. Oftentimes the companies who stored them would eventually just throw them away.
But that changed a few years ago. As computers advanced, they were finally able to analyze all these bits.
This was groundbreaking. Or, as Mike Olson, a pioneer in this industry, puts it, "this was unheard of. This had never happened before ... [it] was really transformative."
So companies started feeding these bits into supercomputers and analyzing them every which way. And I really mean every way. These computers run literally millions, even billions of analyses on these bits.
And if you have enough bits, and you analyze them enough, a computer can see patterns that a human never could. They can even predict the future.
Garrett: So at these "Prediction Plants," companies are feeding millions and billions of bits into supercomputers. They then run billions of calculations on these bits, which allows them to predict the future?
Nancy: Correct. This process is called "Predictive Analysis."
Garrett: Can you give us an example of how this works in real life?
Nancy: Sure. In 2009, you may remember a deadly flu virus called H1N1 began spreading. This scary flu resembled the Spanish flu of 1918 -- a strain that killed tens of millions of people -- so health officials were in panic to halt its spread.
Unfortunately, the Center for Disease Control and Prevention couldn't pinpoint its exact location. And every time they'd finally track it down, it had already spread further.
But it turns out that one company knew exactly where the disease was spreading. It had even published a paper about it in the scientific journal Nature weeks in advance.
And this was without drawing blood, checking vital signs, or even talking with a single patient.
Garrett: How did it know?
Nancy: Well, it owned several "Prediction Plants."
So it fired up the computers and started its predictive analysis. In all, it ran a mind-blowing 450 million different mathematical models at speeds that most computers couldn't match. Certainly no human could do anything like that.
Sure enough, after analyzing enough bits, the computers were able to spit out where the next flu outbreak would happen.
The company then worked with government officials and gave them a powerful tool to combat this potentially deadly flu.
Garrett: That's amazing.
Nancy: It sure is. And here's an example of how this process could have helped folks avoid the 2008 market crash...
The Bureau of Labor Statistics is responsible for figuring out the rates of inflation and deflation. It has nearly unlimited resources: A $250 million a year budget, hundreds of employees, and the prices of about 80,000 items.
Unfortunately, like most government agencies, it's slow. By the time the numbers come out, they're already a few weeks old.
Deflation is often a sign of tough economic times ahead, so this delay can be bad for investors.
But rather than wait around like everyone else, one organization decided to use predictive analysis to try and figure out the rates on their own.
Sure enough, after analyzing millions of bits, they were able to predict as early as September 2008 that a deflationary trend was kicking in. Those who waited on the government's numbers didn't figure this out until November 2008 -- valuable time lost.
This company is now so accurate at predicting inflation and deflation that news outlets like The Economist use its numbers instead of government statistics, in some cases.
Garrett: And that's all because of predictive analysis?
Nancy: Yes. Garrett, you wouldn't believe the things companies are able to predict…
One company can predict whether the price of an airline ticket will go up or down. This service is accurate 75% of the time and is saving travelers $50 per ticket, on average.
A large insurance company can predict whether or not an applicant is unhealthy -- without blood or urine tests.
One oil company can now predict which pipelines will wear down fastest -- long before a dangerous leak.
Garrett: How much did British Petroleum's stock plunge after its 2010 oil spill, 55%? I'll bet its shareholders wished it could have predicted the spill before it happened.
Nancy: Absolutely, and get this...
Thanks to predictive analysis, one oil company was able to cut costs as much as 25% while increasing productivity by 5%.
There's a retailer that accurately predicted that a high-schooler was pregnant even before her parents knew. And as a result, it was able to sell her targeted products that competitors couldn't.
Another firm can predict which warranty claims are fraudulent. It's saved itself $66 million so far.
Another can predict if someone has breast cancer better than a doctor can.
And just remember that this technology isn't widely available. Not every company can build a massive $1 billion plant, or have access to one. Nor do many companies have the computing power or know-how to analyze that many bits, either.
Garrett: So I'm guessing the companies with this power have made a fortune doing this.
Nancy: You bet. The numbers speak for themselves.
I have here the charts of a few classic prediction stocks. They have "Prediction Plants" across the country -- Oregon, Iowa, North Carolina. They're arguably the three top analytics firms in the world...
You'd have made 9 times more money with this powerhouse than the S&P...
You'd have made 13 times more money with this powerhouse than investing in the S&P...
Here's another one...
An insane 5,400% return, 78 times the market.
Garrett: Whoa. Let's see, that turns $10,000 into over $500,000,
Nancy: $550,000, actually.
And several others are returning stellar amounts...
One is up 92% since 2012...
Another soared 131% in 2013...
One early, early pioneer is up 21,300% since 1988...
Garrett: No wonder they don't want their secret getting out.
Nancy: And remember, Garrett, this industry is only just starting to take off.
We're still in the very early stages.
Garrett: Let's talk about that for a minute. What can we expect in the near future?
Nancy: If you break it down by industry, you'll see that there's hundreds of billions of dollars just waiting to be grabbed.
Take Healthcare. A research firm called MGI wrote a report that said if U.S. healthcare companies used predictive technology correctly, "the sector could create more than $300 billion in value every year."
This is just starting to be done, with fantastic early results.
The University of Ontario worked with a prediction company and created a system that's predicted the onset of infection better than a doctor.
Another group can tell with 80% accuracy whether or not a baby will be premature.
Thanks to prediction technology, yet another can predict schizophrenia just by reading transcripts. They don't even have to see a patient.
Garrett: I can only imagine the profits that could come to a hospital that's better at predicting diseases than others.
Everybody would go there.
Nancy: That's why experts believe there's at least $300 billion a year in healthcare money there for the taking.
Another area for growth is Europe. MGI's report says that "government administrators could save more than $149 billion" -- just by using prediction technology across the continent.
Garrett: So how would that work?
Nancy: As one example, if government vehicles get stuck in traffic, they burn millions of dollars worth of fuel. But if they could predict where traffic jams are going to be, they could save all that money.
One private sector delivery company is already doing this. In 2011 it saved 3 million gallons of gas and 30 million miles of wear and tear on its vehicle fleet.
That success led one executive to declare: "At some point in time, the system will be so smart that it will predict problems and correct them before the user realizes there was something wrong."
Garrett: And what other growth opportunities are you seeing?
Nancy: Take targeted advertising. MGI reports that companies "could capture $600 billion" just by showing you ads based on predictive technology.
Garrett: Can you explain that a little?
Nancy: Right now, most companies just use "one size fits all" advertising. Everybody sees the same commercials and billboards. They aren't targeted to you specifically.
Well, if companies can predict exactly what you want to buy, they know exactly what to advertise to you.
So instead of advertising on a billboard, they could send an ad to your cell phone that's tailored just for you.
One of the first prediction companies to use targeted advertising brings in about $7.5 billion a year from it. So you can imagine what could happen when it really takes off.
Garrett: Yeah, I can see why that could be very lucrative.
I'll ask you for more growth opportunities in a moment. But first, what's the best way for investors to take advantage of this big trend?
Nancy: There are actually 3 ways to profit, not just one. So no matter what kind of investor you are, there's something for everyone.
The first way is with the pioneers. These are the companies that created this predictions market.
They're making billions, and just keep growing.
One of these companies has increased revenue from $1.5 billion to $57 billion in the last ten years.
Another is sitting on $80 billion in cash with more coming in every year.
Garrett: So these companies are like Ford Motors in the early days of cars.
Nancy: Right. They own the proprietary technology and are using it to stay well ahead of the competition.
Garrett: You showed us how some of these stocks have been soaring. 650%, 884%, and so on. Explosive gains.
Nancy: While I can't guarantee anything, I predict they'll just keep growing and growing.
For example, they continue to make better and better predictions.
They can now predict things like where a couple will go out to dinner…
Which exotic location will become the next vacation hot spot...
And they keep finding new ways to make money from their Prediction Plants.
Take their bits. Not only are they using them to make better predictions... they've also started letting non-competitors "rent" their bits for a hefty price.
One company started doing this a few years back. It now brings in $3 billion a year.
But it's going to start doing it even more, and analysts say that $3 billion windfall will jump to $8.2 billion by 2017 and $30 billion by 2022.
That alone would be 1,000% growth in less than a decade.
And remember: these companies own the lion's share of the bits out there.
Bits are becoming so important that there's even talk of adding a category for them on the balance sheet. Research firm MGI says that "over time, we believe [bits] may well become a new type of corporate asset."
So other companies and research organizations are likely to pay a lot of money for access to them.
Garrett: And what's the second way to profit?
Nancy: It's with what I call the "Top 3 Predictors of the 21st Century." These are the up-and-comers. They're like the pioneering companies were when they were just starting out. They've jumped into the prediction world with both feet and are showing some impressive early results.
One of these companies makes software that allows other companies to predict the future.
The software can predict whether or not an email address is incorrect....
If the temperature inside a plant will damage equipment...
If a computer system is about to crash...
All sorts of vital things.
The company's up 99% since its 2012 IPO, but I suspect it's not even close to being done. And I'm not the only one saying that.
Analyst Brian White -- who's written about these companies extensively -- made this company one of his top picks for 2014.
And UBS recently made it a buy, saying the company "can continue to grab more market share and has upside from here."
So that's one of my "Top 3 Predictors of the 21st Century." And I've got two more with just as much potential.
Garrett: And the third way to profit?
Nancy: It's with two small stocks with a realistic chance to jump 100% by 2015. These are smaller companies. Even a few thousand dollars -- or a few hundred -- could turn into a windfall return.
One of these stocks is...
Garrett: 100% gains by 2015... That's a lot of gains in a short amount of time. Are you sure about that?
Nancy: Of course, nothing is guaranteed when it comes to investing.
But remember, Garrett: so far I've only mentioned a few of the growth opportunities. There are several more.
Just take the explosive growth in bits. Before computers, we didn't create many bits. But now we're creating them every second almost exponentially.
The numbers are so big they're hard for the human brain to even comprehend, Garrett. But just know that we're not talking billions. We're talking thousands of trillions of bits.
But more important than the total number of bits is how fast we're creating them.
The CEO of Family Dollar says that the amount of bits "is just going to get bigger and bigger and bigger, and people just have to think differently about how they manage [them]."
On top of that, research firm IDC performed an exhaustive, global study on bits in 2010.
It concluded that between 2010 and 2020 the amount of bits will grow by 5,000%.
Garrett: That has to be great news for the companies predicting the future. The more bits to analyze, the better they are at predicting the future, right?
Nancy: Right. And the better they are at predicting the future, the bigger their profits will be.
For example, if a retail store could predict which clothes were going to be popular next school year, it could make a killing by getting those clothes on its shelves early.
That's the kind of thing that the growth in bits could help these companies predict.
Garrett: So bits are growing insanely fast. What else?
Nancy: Of course, computers continue to get faster and faster.
Garrett: How much faster are they supposed to get?
Nancy: Some Silicon Valley folks will give you startling projections. Google's director of Engineering, Ray Kurzweil, told Time Magazine that in about 15 years computers will be capable of "human-level intellingence."
Now, that seems ambitious, so let me give you a baseline to go off...
Something I learned early on in my days visiting Silicon Valley was that computing power doubles every 18 to 24 months. This is called Moore's law, and it's held true going back to the 70s.
Garrett: So that means computers will increase 100% every year and a half to two years, and they'll just keep getting faster.
Nancy: That's right. And the faster they are, the better they will be at predicting the future. They'll be able to analyze more and more bits, and do so faster and faster.
Nancy: And I've got one more figure, Garrett. This one will really blow your mind.
Remember how I said that anytime you're on a computer you're creating a bit? Well actually, anytime you do anything that has a computer component to it, you're creating a bit.
You may not realize it, but computers are starting to show up everywhere. In our cars. In our phones. There are even small ones in microwaves, laundry machines, door locks, and so on.
Last May, the CEO of Cisco -- a man who's been in the trenches for 30 years -- said that the number of computers being put in everything is going to nearly double over the next five years. There will be 2.8 billion computers embedded in things like clothes, keys, toothbrushes, you name it.
It's being called the "Internet of Things," or the "Internet of Everything."
Garrett: Yeah, I've heard about that.
Nancy: Well, just about every time you do something on the computer, you create a bit. So having little computers everywhere is obviously going to generate a lot more bits.
As we just said, that's great for the companies collecting those bits in Prediction Plants. They will have a lot more bits to work with, and will be able to use them to make even more accurate predictions.
Cisco's CEO believes this computer boom will generate $19 trillion in new money and savings over the next few years. That's what he said on January 7, 2014 at the Consumer Electronics Show in Las Vegas.
Garrett: That's trillion with a "T"?
Nancy: That's right -- $19 trillion. That's why Cisco's CEO says they're going "all in."
And the thing is, he's not the only one saying this. Independent outlets are projecting similarly large dollar figures.
For example, research firm McKinsey reported in 2013 that it expects an economic impact of $14 trillion to $33 trillion from the "Internet of Things" by 2025.
Even if you slash these estimates, you're still talking trillions in new wealth finding its way to the kinds of companies I'm telling you about today.
Garrett: 5,000% growth in bits… 100% growth in computer speeds every other year... trillions in new wealth... So it's clear there's huge growth potential.
And Nancy, unlike most folks, you actually have a lot of experience with these kinds of companies. In fact, over the past few years, you've already helped everyday investors find several triple-digit winners.
Nancy: Yes, they've been a focus of mine throughout my career...
Garrett: ...a career that goes back over 20 years now, right?
You started out in the banking industry and worked there for 8 years. Then you took a job on Wall Street, where you made a name for yourself pretty quickly, but not in the way you wanted to...
Nancy: That's right. When I became a securities analyst on Wall Street over 20 years ago, I realized pretty quickly that brokers, analysts, and public companies have a cozy relationship. The old saying, "I'll scratch your back if you scratch mine" really applies to these guys.
Well, I didn't like that. I didn't like being "encouraged" to recommend certain companies... especially when I knew they were ticking time bombs.
So when I created my own rating system and started giving harsh reviews of popular companies, it didn't sit well with the big bosses.
Garrett: I'll bet it caused an uproar.
Nancy: It sure did. And that's when I knew I needed to get away from Wall Street and talk to investors directly -- without bias. And I've been doing it for 20-plus years now.
Garrett: And your track record speaks for itself. Dozens of your recent recommendations have been big winners...
159% in 3 months for Darling International...
82% in 8 months with Ares Capital Corp...
117% in 3 months for Hi-Tech Pharmacal
175% in 3 months for Expedia
Nancy: Yes, those are a few recent examples.
Garrett: And like I said, you've also found some big gainers in the sector we're talking about today.
For example, Callidus Software delivered a 67% gain in 6 months in 2011.
And Tibco gained 105% in 10 months in 2010.
Nancy: Yes, but those are just a drop in the bucket compared to what I think is coming.
Just follow the money, Garrett...
Stanley Druckenmiller, who made billions with George Soros...
Billionaire Ken Fisher...
Donald Yacktman, whose fund has beat 99% of other funds over the past 5 years...
All these "big boys" have millions invested in this opportunity, and keep adding more.
For example, Soros just scooped up 12.5 million shares of stock in this industry.
Carl Icahn just bought 3.8 million shares of another...
And on and on...
Garrett: With all the growth drivers you've mentioned, it's easy to see why.
Nancy: Yes, these predictive analysis companies are able to do things that others simply can't.
Let me give you an example from a few years back. One of these companies was trying to improve its up-selling.
Garrett: Up-selling is when a company offers you a second product to buy, right?
Nancy: Yes. Well, the company's employees were the ones deciding which additional products they thought customers would like, but it wasn't working out too well.
They weren't mind readers. They couldn't always predict what the customers would want.
So the CEO decided to try using predictive analysis instead.
Sure enough, it worked. The system could predict what customers wanted to buy. From movies to toasters to books.
Greg Linden was head of the team responsible for overseeing the analysis. He would later say, "The joke in the group was if it were working perfectly, [the system] should just show you one book -- which is the next book you're going to buy."
Today, this company makes about $20 billion a year thanks to its ability to predict what customers want to purchase.
Garrett: That's a huge advantage over the competition:
Nancy: Oh, yes, and there are more examples, Garrett...
One company uses predictive analysis to "predict the income of film projects."
Its analysis predicted that a movie would only work if they hired an Oscar-nominated actor and paid him about $5 million.
Another time it predicted that a movie about sailing would only be profitable with an $8 million budget -- not the planned $12 million.
Garrett: Amazing. So people from all industries are trying to predict the future.
Nancy: One industry expert said it best: "The race is on."
And what's clear is that those ahead of the curve are best-positioned to make fortunes today and long into the future.
Garrett: So how can our viewers at InvestingAnswers take advantage of all the stocks you've mentioned today?
Nancy: I've made it very easy...
Like I said, there are a few companies likely to see life-changing profits.
They run the gamut. Some are small and unknown -- less than 1 in 1,000 investors have heard of them, let alone invested in them.
Others are bigger industry leaders. You might recognize some of their names, but I doubt you've been told about their true growth potential.
Garrett: So in other words, investors have a wide range. From small-cap to large-cap, fast-growers to dividend payers… tech to retail… you name it.
Nancy: As Stamos Venios, a legendary Silicon Valley investor says, "[predictive analysis] is behind every sector." That means all parts of the market are expected to see gains.
So to make it simple, I've created 3 special reports.
This will give folks a chance to get all the details in writing instead of just having to write them down as I talk.
The first report is called: The 7 Companies Predicting the Future.
It examines the market dominators -- those with a stranglehold on the Predictions Plants. These are the companies soaring hundreds of percent and getting better every day.
They're expanding their operations… getting better and better at predicting the future… are in a great position to capture what analysts believe will be 5,000% growth by 2020... and on and on.
One of these companies, Garrett, is even working on predicting your thoughts.
Garrett: Are you serious?
Nancy: I know that sounds impossible, but it's actually already happening.
Through predictive analysis, researchers have already been able to read people's minds with up to 80% accuracy.
They've known when people are thinking about certain objects like tools, buildings, and food.
The engineering director says, "If you think hard enough about certain words
they can be picked up by sensors fairly easily."
This technology is already being tested on quadriplegics. A wheelchair-bound patient could just think of where he wants to go, and the wheelchair could take him there hands free.
IBM has forecasted that mindreading technology will be mainstream by 2016.
Nancy: You'll get all the details on the seven companies predicting the future -- including all their names and ticker symbols -- in my first special report.
Garrett: And what's the second report?
Nancy: It's called, The Top 3 Predictors of the 21st Century.
As I mentioned before, these are the up-and-comers.
They're seeing double and triple-digit growth… analysts are recommending them as we speak… and they look a lot like the pioneers did back when they were starting out.
You'll get the names and tickers of my favorite three in this second special report.
Garrett: And the stocks you're recommending today… you've put them through your proprietary method for picking stocks? Because you don't pick stocks the same way as the typical analyst.
Nancy: Right, most analysts fall into one of two groups. The first group looks for a big macroeconomic trend. They say, "Healthcare's doing well, so I'm going to invest in that."
The second group doesn't really care about trends. They just look for individual companies that they think the market's overlooked. They just say, "Company X is really cheap, so I'm going to buy it. I don't care what sector it's in."
Now, both of these strategies can work fine on their own. But I discovered that when you combine them, that's when you can really juice your returns.
So what I do is find the big trends sweeping the market. Then I match that up with a stock that looks great even without the trend.
Garrett: So in other words, you combine big trends with stocks already crushing the market. And the combination of the two gives you bigger gains.
Nancy: Correct. See, I've learned that shares of even the best-run companies in the world can be stagnant if there's no catalyst to take them to the next level.
Take Wal-Mart. It's founding family is one of the richest on Earth. It makes $15, $16 billion in profits every year. Yet its share price has barely moved in ten years.
So, I find the best-run companies that also have a growth driver.
Garrett: So logic would say that you spend twice as long searching for companies.
Nancy: It definitely takes a long time. I'm basically doing twice the research. But this is real money we're talking about, Garrett. If I'm going to invest in a company, or recommend someone else do the same, I'm going to make sure it's the right pick.
Garrett: Can you give us a real-life example?
Nancy: There's a company I recommended a few years back called Tibco. It provides infrastructure software.
It also happens to be big in predictive analysis. It has special products that aim to help companies "anticipate what's about to happen."
Well, back in 2009, Congress passed some major stimulus bills. Hundreds of billions of dollars.
Garrett: Yes, I remember.
Nancy: Well, of that massive amount, millions and billions of dollars went to pay for infrastructure projects. Things like bridges and roads.
So I knew immediately that infrastructure was going to be a great sector for the next few years.
And of course I also knew Wall Street would pump up the prices of the obvious beneficiaries -- construction companies and the like. Even if they didn't look that great on their own, everyone would jump at them.
But I didn't go down that path. I recommended Tibco because it was a fantastic buy with or without stimulus money.
During 2008 -- a year when the S&P lost over a third of its value -- Tibco grew net income and revenue, and even beat analyst's earnings expectations three times.
So I liked the company on its own, but combined with the added boost of stimulus money, I knew it was a slam dunk.
Sure enough, it delivered a 105% return from March 6, 2009 to January 15, 2010 -- just 10 months.
And incidentally, Garrett, this is related to my third special report.
Garrett: Oh yeah, tell us about your third report.
Nancy: See, there are smaller companies that most folks have never heard of that are in the same position today as Tibco was back then.
Their fundamentals are strong on their own. Strong margins. Growing revenue, etc. But when you add the insane gains experts expect to see in this Prediction industry, I think they'll really take off.
I've had my eye on one of these companies for a while. It makes software that helps other companies track sales.
Since 2010, it's grown its customer base from 200 to more than 2,000. Names like Pfizer, Wachovia, and Verizon use its products. Over that same time period, it's also grown revenue every year.
But what I like most is that it just introduced a predictive analysis tool. This tool is designed to help its users predict which areas they should target for the best selling opportunities.
Think of what an edge this could provide. As one example, users could hone in on their most profitable markets well before the competition and gobble up the lion's share of the sales.
That's why I think the company providing this predictive tool will continue its growth trajectory.
I could go on and on... in fact, there's another BIG reason why I think it could double by next year.
But I've put all the details in my third special report called: 2 High-Growth Stocks That Could Jump 100% By 2015.
Garrett: And you're giving these reports away absolutely free as part of a new research service you're starting here at InvestingAnswers?
Nancy: That's right. Anybody who signs up for my brand new research service gets them for no cost.
Garrett: So tell us quickly about this new service, because it's completely unique.
Nancy: It's called Five-Star Stocks.
I call it that because I focus only on the best of the best... the companies that pass my proprietary rating system. On a scale of 1-to-5, they get a 5 -- my top rating.
Their fundamentals are rock solid, and they're being pushed even higher thanks to a massive trend.
These are the kinds of companies I hold personally, and the ones I strongly recommend to my own family members.
Garrett: And as we saw, this rating system of yours -- which you've been using for decades -- has helped you find over 30 double and triple-digit winners since as recently as 2011. With many of those gaining 98%... 124%... 135%, and higher.
I know you can't reveal more specifics since it's your trade secret. But I can mention that it's made you a sought-after speaker.
I mean, you've lectured across the country -- Florida, California, Tennessee...
You've led seminars for individual investors at the National Association of Investors, Investment Expo, and the Money Show...
You've taught finance, economics, and banking at the college level...
You've been quoted extensively in The Wall Street Journal, USA Today, Investor's Business Daily, and Businessweek, to name a few...
It's one of the most impressive resumes I've ever seen.
Nancy: Thank you.
Garrett: And I should add, too, that in your new research service, you actually do some things I've never seen before...
Nancy: Yes, in addition to my "best of the best" pick, I also reveal what I call a "High-Growth" pick.
This is a bonus, under-the-radar investment with huge upside.
Garrett: It's basically the kind of stock you're giving away in your third report. A stock that could jump 100% by 2015.
Nancy: Exactly. See Garrett, if you want outsized gains, it's smart to put a slice of your money -- 10% or 20% -- in something that can really move the needle.
That way you can capture the market's biggest gainers without risking your nest egg.
A few thousand dollars -- or even a few hundred -- can turn into a lot more in a short amount of time.
So every month I give readers a high-growth pick to go along with my "best of the best" pick. And they're both Five-Star rated stocks.
Garrett: And you've told us how well this has worked out for you and the people who've followed you. I didn't mention that you also saw:
84% gains in 19 months with Richardson Electronics...
169% gains in 6 months with Power-One...
66% gains in 9 months with Saba Software...
Nancy: Yes, Saba Software is another of my former recommendations that uses predictive analytics. I spotted it back in 2009.
Garrett: I could go on and on talking about your record:
86% gains in 9 months with BMP Sunstone...
80% gains in 1 month with Craft Brewers...
but I think people get the idea.
So to sum it all up...
Nancy: Yes... So every month, subscribers receive what I call a Five-Star Alert sent via email. This alert reveals my Five-Star Stock -- my "best of the best" pick for that particular month.
It includes a full write-up on why right now is the time to buy... an overview of what's happening in the market... a follow-up of my previous recommendations... the whole nine yards.
And as a bonus, you'll also get my "High Growth" pick every month. One that could really juice your returns with just a little bit of money.
Garrett: Now, I know that you've been paid thousands of dollars on the lecture circuit over the years. And I know in the past your services have cost as much as $249.
So how much does this service cost?
Nancy: Normally, a full year costs just $99.
However, since the companies predicting the future are growing quickly, I want as many people as possible to get my write-ups on them today.
So for a limited time, we're going to slash the price.
I can't overemphasize it, Garrett. I honestly think this opportunity could provide some of the biggest gains of the next one year… five years… and 20 years.
Garrett: Well, you showed us the growth potential. Just by renting their bits, one company could increase a portion of its revenue by 1,000% over eight years.
And leading research firms have found opportunities of $149 billion... $300 billion... $600 billion ripe for the taking.
Nancy: And there's one more big opportunity I haven't mentioned yet, Garrett.
I've discovered a company that might be the world's best at anticipating what's likely to happen in the markets.
Garrett: What kind of company is it?
Nancy: It's an investment management firm with an uncanny ability to assess risk.
It not only largely avoided the 2008 market crash, Uncle Sam asked it to help "bail out" other companies. The U.S. government awarded this company a $130 billion contract to manage the Federal government's distressed assets.
Great Britain and Greece came calling, too.
Garrett: So how does it do it? I'm guessing it owns a Prediction Plant?
Nancy: You're right. It has a big one in Washington State. 6,000 supercomputers and thousands more black boxes. They're churning out predictions around the clock.
Everything from what will happen if one of the big banks collapses…
How a worldwide flu pandemic will affect the market…
How the markets are likely to be affected by interest rate changes…
And because the predictions have been so accurate in the past, this company's trusted more than any other in the world.
Garrett: Who trusts this company?
Nancy: Over 170 pension funds, endowments, and banks -- some of which have hundreds of billions in assets. It's also used by over 17,000 traders.
All told, this company manages $4.1 trillion. That's nearly the same amount of money as all the world's hedge funds and private equity funds combined.
Garrett: I'm guessing its share price has done well?
Nancy: It's beaten the market over just about every recent period. 1-year, 2-year, 5-year, and 10-year.
It's growing at a double-digit rate, and what I like most is that every year investors are casting votes for this company with their wallets.
By that I mean that investors are adding roughly $1 trillion to the amount of money this company manages every year.
That's how it collects $400 million in annual fees alone -- and counting.
On top of that, as more and more people get sick of earning near zero percent from CDs and bank accounts, I think they'll continue shifting money into this company's portfolios. It's yielding 2.6% right now, and it has increased its dividend 650% since 2003.
Remember: there's $10 trillion sitting in American bank accounts. That's even after folks added over $231 billion to the stock market in 2013, a record-smashing amount.
So there's still a lot more money people could add to the market, which would almost surely mean bigger profits for this company.
Bottom line, Garrett: it's perfect for today's market.
This is a company that's earning money hand over fist. It has the trust of millions of people across the globe -- including top money managers -- and has accurately forecasted the market's moves on many occasions.
Even without these growth drivers, this company would be a great investment.
It's not a tech company, but it has higher profit margins than Apple and Google. It has $26.5 billion of cash on its books -- enough to pay its investors $157 for every share they own.
I like it so much that I've made it my #1 pick as I kick off my new advisory.
I'm gladly willing to put mine and InvestingAnswers' credibility on the line with this one-of-a-kind company.
Garrett: That's a bold thing to do.
Nancy: I don't think so, Garrett.
This company was the one bailing out others during the financial meltdown. And today it's the top firm others look to for market predictions.
Best of all, it's still trading at a very buyable price -- unlike so many stocks today. And it's got a "moat" you can hardly see across.
Without getting too technical, its gross profit margin is 8x better than the competition...
Its sales are nearly 3x better...
And its return on assets are nearly 5x better -- all fantastic signs for growth going forward.
It's all in the first issue of Five-Star Stocks. By signing up today, you'll get this issue rushed to your inbox in minutes.
Garrett: And you're giving a big discount off the regular subscription price too, right?
Nancy: Yes. Today you can get started for 60% off the regular price.
So the total price comes to just $39 -- or basically less than the cost of a tank of gas.
But because of costs, we can only air this exclusive broadcast for a short time. And once it's off-air, I can't guarantee anything.
Garrett: But if people sign up today, they'll lock in the low subscription price... they'll get three free reports... and they'll get your first issue of Five-Star Stocks?
Nancy: That's right, Garrett. Like I said, this is a steep discount. Normally each report alone costs $29 -- which would come to $116. But by signing up today they're free.
Garrett: And if people don't want to commit for the long term, but still want to give your service a test-drive, you allow for that too, right?
Nancy: Absolutely. You get 60 days to try my work before committing to anything.
You can look over all my research reports... read my monthly and mid-month issues... even invest in my picks to see if you like them.
If you decide before the 60 days are up that this service is not for you, you can just give our team a call and we'll cancel your subscription immediately.
Garrett: So in other words, there's no risk.
Nancy: You're only agreeing to give my work a try to see if it suits you.
I don't want anybody to risk a penny on this service.
Garrett: So there you have it, folks.
It's not very often that you can combine all the growth opportunities we've talked about today:
5,000% growth by 2020 forecast by an independent research firm...
At least $14 trillion in new money expected to be created over the next few years...
Niche sectors that could create as much as $600 billion in new wealth...
And a small handful of companies accurately predicting the future in a wide range of areas.
You can see why billionaires like George Soros and Ken Fisher are scooping up millions of shares in these companies.
And you can see why Nancy says they're some of the best opportunities of her 20-plus year career.
Nancy, I'd like to thank you again for being here.
Nancy: It's been a joy, Garrett. My pleasure.
Garrett: And I'd like to thank you for joining us to discuss The 7 Stocks Predicting the Future.
To lock in Nancy's special low price offer today, just click on the "Join Me Now" button below.
You'll immediately receive up to six special reports, including:
The 7 Companies Predicting the Future...
The Top 3 Predictors of the 21st Century...
2 High Growth Stocks That Could Jump 100% by 2015...
And three more bonus reports you'll discover when you click on the "Join Me Now" button -- including one report that reveals all the companies and organizations behind even the most outlandish predictions we've told you about today.
You'll also get monthly alerts with two stock picks -- both a Five-Star "Best-of-the-Best" Stock and a High Growth pick, along with detailed analysis of both...
All for the lowest price we've ever offered.
But remember that this special presentation will only be broadcast for a short time. So if you want to lock in this low price, I suggest you click on the "Join Me Now" button immediately.
Join Me Now
I'm Garrett Clark.