Let’s Talk Disruption

By John Del Vecchio  |  July 27, 2018


That’s the theme of our annual Irrational Economic Summit (IES) in Austin, Texas.

The event runs from October 25 to 27, and you don’t want to miss the fantastic slate of speakers that we’ve lined up.

Disruption is a great theme because companies that upend their competitive landscape with new technologies offer the potential for huge returns.

Being an early investor in game-changing technology can be hit or miss, but I think I may have spotted an opportunity that flies under the radar…

Here are a few key highlights.

The company was the dominant manufacturer in its market for years – but then found itself in a death spiral when a new technology eroded its competitive advantage.

Left for dead, the company reorganized the business. While it’s been a struggle, the fundamentals look to have bottomed out and cleared the way for sustainable upside.

Meanwhile, a little-known technology that the company purchased years ago is now a key component in a market that’s disrupting a major U.S. industry, one that’s been around for decades.

The pattern is unavoidable: The old ways of doing business are giving way to new methods. Innovation is usually deflationary, and these pricing pressures will threaten some legacy businesses in the years to come.

This key software piece is starting to gain traction in the marketplace and has brightened the future for the company that owns it.

Nevertheless, there’s still a lot of pessimism surrounding the stock.

That’s what makes it such a great opportunity. If management executes, the stock could take off when the thundering herds latch on to the story.

It goes to show that these game-changers aren’t always what you expect.

They can come from left field or from a blue-chip company that hasn’t made any noise in a while.

Locating counter-intuitive and little-known stocks that are loaded with potential is exactly what I do in Hidden Profits.

Each month, I zero in on a stock I believe has the right stuff under the hood — good management, no financial hijinks, realistic business plans, etc.

This year will mark the fifth time I’ve presented at the Irrational Economic Summit.

As always, I’ll talk about my process and some of my favorite ideas – including the underappreciated redemption story that’s at the top of my buy list.

If past is precedent, you don’t want to miss this year’s IES.

Over the past four years, the stock I highlighted in my talk has outperformed the broader market over the next 12 months.

A perfect 4 for 4.

My favorite hidden profit opportunity right now offers triple-digit upside, so I’m hopeful that my winning streak will continue.

In addition to my presentation on disruptive technologies, I’ll be hanging out for the duration of the conference and checking out the other speakers.

Feel free to say hello! If you have comments, questions, or just want to chat about the weather, I’ll be available!

IES is always a fun event, and I enjoy meeting our subscribers in person. I’ve even forged a few friendships over the years. Plus, Austin is a great city with a vibrant nightlife. It’s a perfect place to decompress after a long day of speeches.

Dent Research is offering early-bird reservations for IES as I type. Tickets are $400 off their normal price, which is quite the steal.

I hope to see you in Austin!

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John Del Vecchio

John Del Vecchio is the author of the bestselling book, Rule of 72: Compound Your Money and Uncover Hidden Stock Profits and What’s Behind The Numbers: A Guide To Exposing Financial Chicanery And Avoiding Huge Losses In Your Portfolio.

As the in-house stock market guru and forensic accountant for Dent Research, John stood on the shoulders of the great David Tice, James O’Shaughnessy and Dr. Howard Schilit, and built a framework of algorithms and a multi-factor grading system that has made him one of the more successful short-sellers around.

John is also the executive editor of our Hidden Profits newsletter and our trading service Small Cap All-Stars.

He graduated Summa Cum Laude from Bryant College with a B.S. in Finance and was awarded Beta Gamma Sigma honors. He earned the right to use the Chartered Financial Analyst designation in September 2001.MORE FROM AUTHOR