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The Single-Stock Retirement Plan

How to Retire on This Obscure $3 Stock


Table of Contents

– The Most Dominant Tech Company You’ve Never Heard Of
– The “Invisible” Company That Dominates the Market
– The Elephant in the Room
– The World’s Next Most Profitable Stock…
– The One Stock to Retire On
– How to Buy It (MOST IMPORTANT PART – READ THIS!)
– Foxconn’s Big Move Into America
– Don’t Let Your Single-Stock Retirement Plan Slip Away

Congratulations!

You now have in your hands my report regarding the single stock that I believe could pay for your retirement.

This stock trades for less than $3.

And yet it’s set to generate more revenue in the coming year than IBM, Facebook and even Google.

As you’ll see in this report, this stock trades incredibly cheap for a number of reasons. And we believe that will change dramatically in the coming months.

As this stock builds cutting-edge production facilities across America, it will make major headlines over and over.

But you know about it now…

And that gives you a major advantage.

As you’re about to see… this company has its hands in just about every major tech trend around the globe today.

The Most Dominant Tech Company You’ve Never Heard Of

If it seems that all devices, gadgets, appliances and objects are going “online,” it’s not an illusion… THEY ARE.

In addition to computers and smartphones, all sorts of things are now being connected… including manufacturing equipment, vehicles and home appliances.

Pretty much whatever you want to do, monitor or control can be done remotely… gaming, banking, operating appliances, performing surgical procedures, driving cars, taking classes, shopping, dating, listening to music, you name it.

Businesses, governments and consumers are rapidly and enthusiastically connecting their devices to the Internet of Things (IoT). Basically, anything embedded with electronics can connect and exchange data.

Those creating these new tech breakthroughs generated some truly outrageous fortunes:

  • Jeff Bezos, Amazon, $132.4 billion net worth
  • Bill Gates, Microsoft, $92.3 billion net worth
  • Larry Page, Google, $51.1 billion net worth.

And the thing is… their shareholders got rich right alongside them.

It’s estimated that Microsoft has created as many as 10,000 millionaires.

Had you decided to invest $5,000 in Amazon’s stock when it first hit the public markets 20 years ago, your stake would have been worth at least $2.4 million today.

And The New York Times reported that more than 1,000 Google employees alone now have stock options worth more than $5 million each.

It’s clear that if you can identify a major tech company on the way up, you can, in fact, retire on a single stock.

Unfortunately, the outrageous fortunes made by getting in early on Microsoft, Amazon and Google are now behind us. Those ships have sailed.

However, there is a new company that gives you a chance to profit from the tech giants without investing in them.

You see… in order to sell trillions in products worldwide, someone has to be creating and manufacturing all the devices and components.

One company has landed hundreds of contracts to do just that…

It’s time to tap into the next up-and-coming company that is capitalizing on the irreversible trend to connect everything.

The “Invisible” Company That Dominates the Market

That brings me to our $3 stock.

It’s commonly referred to as Foxconn, but trades under the name Hon Hai Precision Industry Co. Ltd.

Foxconn is the world’s largest contract electronics manufacturer and the fourth-largest information technology (IT) company by revenue.

It is less expensive, is growing faster and has higher sales than Microsoft and Facebook combined…

In terms of sales, Microsoft trades 39 times more expensively than Foxconn. And Facebook trades 45 times higher.

Yet Foxconn is actually more involved in creating our high-tech world than either of them.

Any electronic device that you can hold in your hands or operate from your lap… Foxconn will likely be involved in manufacturing some piece of it by this time next year.

Its operations include manufacturing mobile phones, computers, servers, TVs, flat-panel displays, game consoles, motherboards and handsets. It also assembles desktop and notebook PCs, printed circuit boards, transistors, networking equipment and an assortment of other consumer electronic devices.

Its customers span many cutting-edge and highly profitable sectors – computers, smartphones, consumer electronics, retail, lodging, automobiles, medicine, travel, banking, e-commerce, robotics, etc.

Foxconn’s client list includes nearly all of the technology industry heavyweights… and reads like a “who’s who” of the tech world. Some of its U.S. clients are Amazon, Microsoft, Intel, Google, Dell, Cisco, Nvidia and Apple, to name a few.

Its client list also includes international powerhouses from China, Japan and Canada, among others. Quanta, Toshiba, Nokia, Sony and Nintendo are among the companies on that list.

Foxconn has landed contracts to build some of the best-known electronic products in the world, including the Blackberry, iPad, iPhone, iPod, Kindle, Nintendo video games, Nokia devices, PlayStation and Xbox.

Here is a list of some of Foxconn’s biggest contracts. You’ll see it’s a “who’s who” of the tech world.

Apple: $29.26 billion
HP: $2.77 billion
Hewlett Packard: $1.38 billion
Huawei: $1.32 billion
Lenovo: $1.05 billion
Sony: $967 million
Cisco: $828 million
FIH Mobile: $562 million
Nokia: $450 million
Microsoft: $395 million
Nintendo: $345 million
Intel: $317 million
Sharp Corp: $306 million
IBM: $272 million
Nvidia: $206 million

Apple is its largest client, providing about 52% of revenue (having many contracts beyond the one mentioned above). Whether you use an iPhone, iPod, iPad, Mac computer or any notebook computer from Apple… Foxconn very likely played a significant role in its manufacturing.

Further linking the two companies together… late in 2016, Foxconn completed a $3.8 billion deal to buy electronics maker Sharp Corp., which makes displays for Apple products.

Another large client is Intel. Foxconn is now manufacturing eight different motherboards for this computer processing giant.

But here’s the really amazing part.

Although many of its business partners, like Intel, Microsoft and Apple, are “household” names… and in spite of its huge significance to the electronics industry… Foxconn operates in relative obscurity.

The Elephant in the Room

Foxconn is a huge global presence…

  • It has more than 20 manufacturing facilities around the world.
  • It will be the largest private employer in China for the foreseeable future.
  • It’s on the way to becoming one of the world’s 10 largest employers, with an estimated workforce totaling 1.3 million.

Yet it’s virtually unknown here in the U.S… for now.

Last year, revenue hit an all-time high of more than $175 billion.

But the real growth is just getting started.

The tremendous expansion of IoT devices is creating unprecedented demand for Foxconn’s manufacturing expertise. Business is soaring.

To meet that demand, Foxconn has plans to build at least a dozen more manufacturing facilities.

Right now, all of Foxconn’s manufacturing is done overseas. But that’s about to change…

Foxconn wants to get a U.S. plant up and running as quickly as possible.

The company has broken ground and started preliminary construction on a new manufacturing complex in Racine County, Wisconsin – its first-ever U.S. manufacturing facility.

And you know who loves the idea of new jobs created right here in America? President Trump. In fact, Trump held a press conference to announce the decision.

This is a major win for Trump, Wisconsin, America and Foxconn… bringing thousands of jobs and billions in revenue right here to America.

Foxconn wants to develop closer ties with America’s huge technology titans – Microsoft, Cisco, Intel, IBM and HP, among others. (It’s already heavily involved with Apple.) To do that, it’s planning on building manufacturing plants right here in the U.S.

The positive publicity is starting to flow for Foxconn… Unprecedented attention to its undervalued stock won’t be far behind.

On June 28, 2018 the company broke ground on its Wisconsin plant. And guess who was there for the groundbreaking ceremony. That’s right, President Trump himself.

And there’s good reason for that. Foxconn is Trump’s poster child for “Make America Great Again.”

Instead of building more production facilities in Asia, Foxconn is making a substantial investment right here in America.

Building the Wisconsin Foxconn complex will create 10,000 construction jobs during the process.

Once completed, the facility will employ 13,000 people directly and provide an additional 22,000 indirect jobs.

With 22 million square feet of manufacturing space amongst a 1,200-acre campus, it will be one of the largest manufacturing campuses in the nation.

The company plans to start initial operations this year and keep expanding until 2022.

There are a number of catalysts along the way as the company keeps increasing the production capacity.

Foxconn may even become one of the hot-button stories that seem to spread across the country like wildfire.

One thing’s for sure. President Trump will be following the developments very closely. You can bet your life that Trump will be telling everyone within earshot about the new jobs created. He’ll undoubtedly tweet about how he’s “making America great again.”

His detractors will bash him. And his supporters will say this is what the country needs.

And through it all, Foxconn will continue to get major press that could drive its stock much higher.

I don’t know how much pressure (if any) President Trump put on the company. But this secretive, under-the-radar company is going to tell the world what it’s up to…

In fact, the company has initiated a series of announcements called Foxconn Project Briefings.

These briefings will generate a tremendous amount of positive publicity for Foxconn. (What’s not to like about announcements regarding thousands of high-paying jobs and economic prosperity for an entire region?)

Talk about making America great again…

This, in turn, will bring a lot of attention to Foxconn’s extremely undervalued stock… currently selling for less than $3.

Keep in mind that the company is almost completely unknown on Wall Street… for now.

But Wall Street loves a good rags-to-riches story, and it’s got one here.

This plant in Wisconsin is just the beginning. Foxconn is planning to open production facilities in Ohio, Pennsylvania, Michigan, Illinois, Indiana and Texas.

“Our investment in the U.S. will focus on these states because they are the heart of the country’s manufacturing sector,” company founder Terry Gou told investors. “We are bringing the entire industrial chain back to the traditional manufacturing region of the U.S.”

You may have heard that Foxconn founder and CEO Terry Gou stepped down from his role as chairman to run for president of Taiwan. Young Liu, head of Foxconn’s semiconductor unit, was elected by the board to replace Gou.

However, Gou’s bid for the presidency failed when he lost his party’s primary election. His future in politics is still to be determined, but many analysts are speculating that he will again focus his full attention on Foxconn.

Regardless, Gou, since stepping down as chairman, has repeatedly said that he will still be involved in “the major direction of the company” – just not its daily operations. He remains a board member and the company’s largest shareholder.

Speaking of owning shares…

What you may not have heard – it certainly hasn’t received much attention in the mainstream media – is that in the past 12 months, Gou has invested nearly $740 million during a month-after-month buying spree, according to Focus Taiwan News Channel.

That’s quite a statement of faith in the future of Foxconn…

Nobody knows a company – and its value – better than the folks who run it. They have access to all sorts of nonpublic information about the company’s current operations and near-term business prospects.

Dozens of independent studies have shown that stocks under heavy accumulation by insiders outperform the market averages by a wide margin. Riding the coattails of knowledgeable insiders is one of the best ways to outperform the market.

With all this in the works, you can see why Wall Street is loading up on shares… even while the company is trading off U.S. exchanges.

As I mentioned in my story, BlackRock is a believer, holding nearly 3% of the shares. And it just recently grabbed another 430,000 shares. Vanguard is an even larger shareholder with a 3.14% stake. They recognize that as Foxconn’s U.S. presence becomes stronger, the demand for its stock will only rise.

It may even get listed on the U.S. exchanges once it gains more notoriety.

And guess what that would mean for its $3 share price? As millions of American investors get direct access, it’s likely to go through the roof.

In short, the elephant is about to get noticed.

But you’ll have a chance to get in BEFOREHAND, when the stock is still cheap and unknown. That’s why we believe it’s perfect for the Single-Stock Retirement Plan.

I’ll get more into the exciting way to buy the stock in a moment, but first, a few more reasons why this stock is on the verge of becoming one of the most profitable in the world.

The World’s Next Most Profitable Stock…

Foxconn is not as flashy as some of the tech giants. It doesn’t have big product launches like Apple. But behind the scenes, it has its hands in almost everything.

We call it a pick-and-shovel company.

In an ode to the Gold Rush of 1849, we like to concentrate on what every miner had to have – the picks and shovels – instead of what they sought, but rarely ever found… the gold.

And Foxconn is making billions of electronic picks and shovels…

It doesn’t sound very glamorous when describing the company’s products – cooling and heat-dissipation systems, micro speakers and directional sound components, light metal/plastic materials, injection molding and precision micromotors and microactuators.

If all that doesn’t make sense to you… just think of it as the company that makes lots of internal and external parts for mobile phones, notebook computers, tablets, home appliances, watches, autonomous vehicles, robotics, etc.

That still doesn’t sound glamorous… but when nearly everyone in the electronics, computer and automation industries is clamoring for your services… WHO CARES?

Foxconn is the go-to manufacturer at the core of all these massive trends:

  • Internet of Things
  • Big data
  • Cloud computing
  • Smart consumer products
  • Online gaming
  • Industrial automation
  • Artificial intelligence (AI)
  • Driver assisting and self-driving technology
  • Robotics
  • Smartphones
  • Virtual reality
  • Medical equipment technology
  • Gaming technology
  • E-commerce.

Plus, Foxconn is at the epicenter of global growth. Many Asian countries are growing their economies more than twice as fast as we’re growing ours.

Currently, the bulk of Foxconn’s revenue is generated from its manufacturing facilities in China. The company completely understands Beijing’s and Asia’s unique brand of management and business style.

And bear in mind that China isn’t just the world’s most populous country. It is also the world’s fastest-growing consumer market. Foxconn has 12 manufacturing facilities in the country, with more to come.

In addition, because of its location and ties to the area, Foxconn can extend into overseas markets, yet experience only a fraction of the logistical complexity.

For example, Foxconn owns 62% of FIH Mobile, a Hong Kong-based manufacturer of Android phones.

FIH recently transferred hundreds of engineers and other resources to a newly established automotive electronics project.

The move gives Foxconn a foothold in the next generation of electronics and suggests that the company’s push into the automotive, health and semiconductor industries is accelerating.

In addition, the company recently started manufacturing the iPhone X in India. India has more than 1.3 billion people, a rising middle class and a fast-growing economy.

By producing the iPhone in India, Apple will avoid import duties of 20% and also meet local sourcing rules that would allow it to open its own stores in the country.

Apple currently has a miniscule 1% share of the Indian smartphone market. So there’s a tremendous amount of potential upside here for Apple… and Foxconn. Foxconn has said it will have enough capacity to make all the iPhones needed for India’s market.

And finally, Foxconn is set to benefit from the global launch of new iPhone models, expected later this year.

The world is becoming increasingly digital… There’s huge untapped potential around the globe. And Foxconn is in a prime position to benefit.

The One Stock to Retire On

2018 was a record year for Foxconn.

Foxconn closed out the year on a very strong note as fourth quarter revenue, net income and earnings per share all set company records.

That’s without any production facilities here in the U.S.!

Wait until the Wisconsin plant is up and running, with other U.S. locations to follow. (Apple has already agreed to a $10 billion deal to have Apple component parts made at the Wisconsin facility).

And look at these financial metrics for Foxconn, all outstanding:

  • It’s trading for a price-to-earnings ratio of only 7.9.
  • It’s paying a 5.04% dividend yield.
  • Its price-to-book ratio is 0.88 (meaning it is selling for below what the company’s assets are worth).
  • Its price-to-sales ratio is a ridiculously low 0.21 (anything below 1.0 is considered a bargain and a rarity among high-growth companies).
  • Its total debt to total equity ratio is only 50.4%.
  • Its gross profits were more than $11 billion last year.

Yet its stock trades at less than $3 a share.

And to top it all off, according to Intellectual Property Watchdog… Foxconn has amassed one of the largest patent libraries of electronic technology of any company in the world. It has 29,187 patents inside the United States and 49,599 registered globally.

That means its proprietary products are well-protected and can’t be duplicated by competitors. And, as I mentioned, the technology industry is booming…

According to Statista, the AI market will be worth $59.74 billion annually by 2025… which is a 2,368.9% increase from 2017’s recorded numbers.

Research firm Strategy Analytics claims that driverless vehicles will eventually create $7 trillion worth of economic activity.

Business Insider Intelligence forecasts there will be more than 24 billion IoT devices on Earth by the end of 2020 – with a potential economic impact of $11.1 trillion a year.

I can see Foxconn being a major player – if not the major player – in ALL of these explosive growth sectors.

Its specialized manufacturing capabilities are at the center of the most consequential megatrend in technology.

That’s why I’m a firm believer that Foxconn, currently selling for less than $3, can provide you with a multimillion-dollar retirement… starting today.

How to Buy It  (THE MOST IMPORTANT PART – READ THIS!)

And now for the most exciting part…

There is, in fact, a reason Foxconn is so cheap and unknown.

It’s the reason YOU have a great advantage over the regular investors of the world.

You see… Foxconn is listed on the Taiwan Stock Exchange (TWSE).

However, it doesn’t trade as Foxconn – but instead trades as Hon Hai Precision Industry Co. Ltd.

Hon Hai Precision Industry (i.e., Foxconn) trades on the Taiwan Stock Exchange under the symbol 2317 T T.

This means that although you can buy the stock, as you’ll see below, most regular investors do not own it and have not even heard of it. That’s the reason this stock remains criminally cheap at under $3 per share.

Consider this… the company trades at just 0.21 times sales.

By comparison, Apple trades at 3.7 times sales. In other words, Apple shares are 16.6 times more expensive to buy than Foxconn shares.

Facebook is an even bigger gap. It trades at nearly 10 times sales!

Foxconn shares would have to move 45 times higher to reach Facebook’s sales multiple!

In short, the fact that Foxconn is listed on the Taiwan exchange means that – for now – you can get shares FAR cheaper than you could if they traded on the U.S. exchange.

And if you are willing to take the couple of extra steps to buy it, it will give you the chance for much bigger profits down the road.

And I’ll be very direct about this.

A lot of people are unwilling to go the extra mile to buy this stock. That’s why they will miss out, while you will be in perfect position.

So here are the steps you need to take.

First, the current stock price can be accessed from your brokerage account or any financial website. You will see Foxconn’s price listed in Taiwanese dollars. The Taiwan currency is called the New Taiwan dollar (ted as NT$). As of this writing, US$1 = NT$31.10.

As of this writing, the price is around NT$68. When this is converted into U.S. dollars, it is equal to about US$2.21. (As of this writing, US$1 = NT$30.8.)

You can buy the stock at this price, and there are a few different ways you can do it.

The FIRST OPTION, which is the most direct, is to do this trade through a full-service broker. Most full-service brokers can buy and sell stocks listed on foreign markets.

Your SECOND OPTION: is to buy Foxconn through the foreign trading desk of your discount broker.

Let me be clear, many discount brokers WILL NOT be able to buy this stock since it trades on the Taiwan exchange. Most online brokers buy and sell only stocks that trade in the U.S. or Canada.

Unfortunately, you won’t be able to do this trade online.

When you reach a broker or representative, ask to speak to someone on the foreign trading desk or in the international department.

Here are some possible requirements:

  • Purchases are done in minimum increments of 1,000 shares (so minimum investment would currently be slightly more than $2,000)
  • A higher or additional brokerage fee
  • Taiwan market fee: 1% markup.

**We recommend using one of the first two options for the best results.

Other brokers may be able to purchase shares for you. You can always call and check with them.

But regardless of what brokerage you use… there are some things you should know:

  • VERY IMPORTANT: You want to buy Hon Hai Precision Industry Co. Ltd., trading as Foxconn (TWSE: 2317 TT).
    • Don’t get this confused with Foxconn Technology (a specialized subsidiary of Foxconn), which also trades on the TWSE.
    • Make sure you are clear with the broker that you want to buy only 2317 TT.
  • Check with your broker regarding commissions on this trade. Some brokers will charge more for purchasing non-U.S.-listed shares versus their standard fees on U.S. stocks.
  • Ask if there are any foreign transaction fees or charges in addition to the commission. Find out how much they are before making the trade.
  • Unless otherwise indicated, all U.S. brokers will list the shares in your account in U.S. dollars, meaning the brokerage firm will buy Foxconn shares on the Taiwan exchange using New Taiwan dollars and then convert the purchase back into U.S. dollars. Your account will reflect the cost in U.S. dollars. This is fine. Just find out what the brokerage’s policy is and ask if there are additional fees involved.
  • As an alternative, your brokerage firm may be able to purchase Foxconn in New Taiwan dollars and show it that way on your brokerage statement. In other words, it wouldn’t convert the shares immediately back into U.S. dollars. It would be converted back into U.S. dollars only when you finally sold your shares. This may offer an advantage to you if you think the New Taiwan dollar is going to appreciate against the U.S. dollar, improving your returns by enabling you to benefit from the currency appreciation. It’s something to consider if it’s available.

A THIRD OPTION, but one we are reluctant to heavily recommend due to low trading volume, is that Foxconn does have a U.S. over-the-counter (OTC) listing. The symbol is: HNHPF.

These shares represent a global depository receipt (GDR) that is the equivalent of two shares on the Taiwan Stock Exchange. In other words, shares of HNHPF trade for about $5.17, roughly double the U.S. dollar value of the Taiwan listed shares.

This is because you are buying two shares at once.

TD Ameritrade is one discount broker that can purchase the OTC shares.

Whether you buy the shares on the Taiwan exchange or OTC, be sure to use a limit order. You don’t want to overpay, which will happen if you use a market order on this stock.

But let me be clear about one thing here… This stock is not as easy to trade as others. And while some investors would see that as a roadblock, we see it as a major advantage. Here’s why…

If the stock were easy to buy, it would likely be far more expensive. By going the extra mile and taking these extra steps, we have the chance to get the stock ultra-cheap at under $3.

And that price may change very soon.

Let me explain…

Foxconn’s Big Move Into America

As you’ve seen, Foxconn is pushing into America. It has a huge facility in the works in Wisconsin. Donald Trump was there for the groundbreaking ceremony and spoke at the gathering along with the company’s founder, Terry Gou.

But its production facilities could soon be found in Ohio, Pennsylvania, Michigan, Indiana, Illinois, and Texas.

In other words, the company is making a BIG MOVE into America.

And inevitably, we believe that could mean that it ends up listing shares on an American exchange. If it does, suddenly all the big trading institutions, pension funds, endowments, mutual funds, and regular investors will have direct access.

You can bet the stock will no longer trade at 0.21 times sales.

The stock could rise dramatically as a result. So by taking these extra steps today, you’ll be in perfect position if and when this listing on the U.S. exchange occurs.

That’s why we believe this stock is perfect for the Single-Stock Retirement Plan.

Don’t Let Your Single-Stock Retirement Plan Slip Away

Many would give anything to reset the clock and have another chance at becoming retirement rich by buying Amazon, Microsoft or Apple before it got “discovered” and took off.

I believe Foxconn could do even better than Amazon and the others.

This is the kind of one-stock investment that will allow you to start late and still retire rich – even if you know nothing about the markets in which it operates or how it does business.

I don’t want to sound overly dramatic, but buying this stock before Wall Street catches on might be the last chance you’re going to have to get on board before the cat gets out of the proverbial bag and everybody on Wall Street suddenly recognizes the potential I’m discussing.

Now’s the time to pick up a few shares while they’re still cheap.

Action to Take: Buy Hon Hai Precision Industry – i.e. Foxconn – (TWSE: 2317 T T) using a limit order. Find out what the current bid and ask price is and give your broker a specific price you are willing to pay. 

If you want more information or the latest updates on Foxconn, please go to the following sites.

Foxconn FAQs: https://oxfordclub.com/2019/01/your-foxconn-questions-answered/

Foxconn Updates: https://oxfordclub.com/publications/communique/?archive=update

Important Note: This stock will not be included in any of The Oxford Club’s portfolios. This is a “special situation” stock that is meant to be held long term in order to finance your retirement. Invest only an amount you are comfortable with.