Altucher is selling his Microcap Millionaire service (list price is $10,000, the offer had closed by the time I reviewed so I don’t know what the “special sale price” was this time — probably $2,500 or so, as is typical). And the bait he dangles is a packet of special reports about the five stocks he thinks have 1,000% gains potential.

He says that some of these microcap “superstocks” are trading at the biggest discount in a decade, so readers are filling my inbox with questions. I’ve gotten behind the eight ball on some other work at the moment, and had to listen to the whole damn presentation to get to some clues, so I don’t have a full report on each of those stocks for you, and I haven’t had time to get to much of a personal opinion on them… but I can at least identify them, based on the clues given, and get you started on your research.

This is based on another “Summit presentation” from Paradigm Press, with Doug Hill “interviewing” James Altucher as they sell the idea that the beginning of the Fed’s rate cut cycle will create a booming market for small cap stocks (which they call either “microcaps” or “super stocks”), with Altucher hinting at five different ones that he thinks have a good chance to go up 1,000%… maybe within a year. They think this class of “superstocks” is about to enter its biggest bull market in 50 years.

The five stocks are split among three special reports… the firs tone teased is “The Second Wave: 3 Superstocks leading the AI2.0 revolution”…

Basic idea is that the next wave of winners in AI will be on the software side. The biggest winners will be the companies who are solely focused on software. Each one is worth about $500 million, maybe a little less, and they’re using AI in multiple industries.

Clues about the first one?

It’s focused exclusively on data, and is a leader in its field. You can’t do AI without large amounts of data

Last year it signed a major deal with one of the world’s five largest technology firms. Recently signed another deal with one of the Mag 7, worth over $40 million in annualized revenue. Have now secured deals with five of the Mag 7, working on the other two.

The business is helping customers use data to create white label generative AI projects. Financially rock solid, revenue almost $100 million, and they turned a small profit last year.

That’s Innodata (INOD), which did indeed recently announce a deal with a “Mag 7” company that they say will lead to $44 million in annualized revenue… and they did just become marginally profitable last year, with about $86 million in revenue. Valued at about $500 million today at $18 a share, so trading at about 6X sales and 150X expected earnings (only two analysts, so take that estimate with a side of caution). Their last Investor Presentation is here if you want their overview — good growth, improving margins, some AI optimism, and that’s all I know about these guys offhand.

Next?

AI applied to the field of medicine, develop next-gen medical imaging systems at much lower cost.

Founded by a serial entrepreneur who established more than 20 companies and set up more than 70 patents

Has access to 30 million patient record and 500 million medical images.

Revenues up 1,000% from two years ago. Rev much smaller than the $50 million he’d rather see, but growing.

Steve Cohen from Point72 bought over $3 million worth of the stock just a few months ago.

Cathy Wood and Ken Griffin both bought, too, about $3 million each, normally they’d focus on larger stocks. Only a tiny stake.

That’s Nano X Imaging (NNOX), which we might remember mostly because the stock got a stupid boost in February when NVIDIA had to file its first 13F, reminding the world that they have owned a little bit of NNOX for along time, a result of an earlier partnership between the two. Super tiny business, not really growing much in terms of revenue at the moment, but still arguably elevated by that NVIDIA connection, last business update is here.

And the third one…

Last is personal favorite of these three, security company that specializes in identity verification, biometrics, fraud prevention and other cybersecurity stuff, becoming an increasingly huge issue.

Emerging leader in its field, several fortune 500 companies are already on board, millions of customers

Helped one of the UK’s four largest clearing banks achieve a substantial drop in fraudulent applications
Helped Virgin Money completely digitize its customer journey, sped up application process and helped them get new customers.

That’s actually a stock which is already in our $100K Lock Box, Mitek (MITK) — that Virgin Money case study is here, and the UK bank (NatWest) study is here.

Mitek got its start handling imaging for mobile check deposits, and has built on that to do mobile ID verification for banks and similar entities. They’ve had a rough time catching up with their filing obligations and couldn’t file real financial reports for more than a year, and they were in the doghouse as a result, but they seem to have finally caught up with their accounting, and they’re growing at least a little bit again. Currently at 13X forward earnings, so arguably value priced, but when you spend a couple years screwing up your filings that makes many investors wary. Fingers crossed that they’ve fixed the issues.

And there are two others… here are my notes about the hints for the first one, which is a 3D printing company…

Altucher’s favorite stock, “Deal of a Lifetime” report.

Nothing to do with AI or bitcoin

Quietly emerging as a dominant player in a new mode of manufacturing

3D printing, benefits from broken supply chains. 97% of manufacturers expect to use it more over next five years.

Uses 3d printing to create circuit boards for microchips.

Making inroads in aerospace, defense, automitive, medical, telecom.

Revenue is up nearly 2,000% in last four years since 2020

Still only worth about $500 million, sitting on over $800 million in cash.

Mar 2020 to feb 2021 stock went crazy, they sold a ton of shares to fund next level of growth, then they sold off, became probably the biggest bargain that I have found.

Company and all its assets worth maybe $1 billion, market says it’s worth about $500 million. Someone will figure this out and it will more than double in price, and the revolutionary tech could send it much higher than that. Best chance of 1,000% gains.

That’s almost certainly Nano Dimension (NNDM), which does have about $793 in cash on the books at the moment, thanks to equity raises in 2020 and 2021. They’re trying to use some of that cash to buy another former darling, Desktop Metal (DM), for about $180 million, so the cash balance will be declining and the revenue will grow considerably if that happens.

And finally, we’re teased about “Bitcoin’s #1 Superstock” … here are my notes:

Crypto tech firm, number one microcap in the crypto tech space. Mines bitcoin, but is a tiny fraction of the size of some of the other miners like Marathon ($5 billion). This stock is just $300 million. Very cheap. 10X potential. Miners are making less because of bitcoin halving, though bitcoin prices went up to help. They saw it coming, and have alternative revenue to bitcoin, too.

Bitcoin is at $150,000 at least by the end of 2025, so all will go up. Has started to diversify, though, they have the mining operations with the computers, same infrastructure as the AI companies. Brought in $8 million leasing to AI firms last quarter.

27 hedge fund increased position during the pre-halving selloff.

This is Bit Digital (BTBT), a bitcoin miner which in recent presentations calls itself “a sustainable platform for digital asset production and AI infrastructure” — they also own a bunch of Bitcoin and Ethereum that they’ve mined, so presumably the share price follows that trajectory to some degree (and they generate some yield from the Ethereum). They’re aiming for $100 million in AI revenue on an annualized basis, roughly doubling the current AI business they have and building on their 2,000 NVIDIA GPUs in an Icelandic data center, but are also trying to double the size of the “mining” fleet.

Sorry I can’t dig deep into these for you, but there’s your list of the five microcaps James Altucher has been hinting at in recent ads… please feel free to share thoughts or analysis of any of them in the comments below…

Disclosure: Of the stocks mentioned above, I own shares of NVIDIA and Mitek. I will not trade in any covered stock for at least three days after publication, per Stock Gumshoe’s trading rules.