You now have in your hands my report regarding the single stock that I believe could pay for your retirement.
This stock trades for just under $4.
Yet it’s set to generate more revenue in the coming year than IBM, Facebook and even Google. In fact, Bloomberg predicts the company will break $214 billion by the end of next year.
As you’ll see in this report, this stock trades incredibly cheap for a number of reasons. And I believe that will change dramatically in the coming months.
As this company 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.
Table of Contents
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, you can 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 have generated some truly outrageous fortunes:
- Jeff Bezos, Amazon, $193.5 billion net worth
- Bill Gates, Microsoft, $135.6 billion net worth
- Larry Page, Google, $118.3 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 in 1997, your stake would have been worth nearly $11 million today.
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 of dollars 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 movement to connect everything.
The “Invisible” Company That Dominates the Market
That brings me to our $4 stock. It’s commonly referred to as Foxconn, but it trades under the name Hon Hai Precision Industry Co. Ltd. (TWSE: 2317 TT).
Foxconn is the world’s largest contract electronics manufacturer and the fourth-largest information technology (IT) company by revenue.
Until recently, Foxconn was trading for less than $3, but at the end of 2020, it saw a massive run-up in share price.
The company’s global depositary receipt, or GDR (more on this later in the report), began climbing in late October 2020. It has since retreated a little from that 2021 high to just below $4, creating a fantastic buying opportunity.
That’s because the market is only now waking up to the incredible potential of this stock. And it’s no wonder why… It is less expensive, is growing faster and has higher sales than Microsoft, IBM and Facebook.
In terms of sales, Microsoft has a price-to-sales ratio of 14.05. That’s significantly higher than Foxconn’s at just 0.26.
Yet Foxconn is actually more involved in creating our high-tech world than Microsoft…
Think of 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. Its U.S. clients include Amazon, Microsoft, Intel, Google, Dell, Cisco, Nvidia and Apple, to name a few.
Its client list also includes international powerhouses from China, Japan, Canada and more. 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, PlayStation and Xbox, as well as Nintendo video games and Nokia devices.
Here is a list of some of Foxconn’s biggest contracts. You’ll see that it’s truly a “who’s who” of the tech world.
- Apple: $29.26 billion
- HP: $2.77 billion
- Hewlett Packard Enterprise: $1.38 billion
- Huawei: $1.32 billion
- Lenovo: $1.05 billion
- Sony: $967 million
- Cisco Systems: $828 million
- FIH Mobile: $562 million
- Nokia: $450 million
- Microsoft: $395 million
- Nintendo: $345 million
- Intel: $317 million
- Sharp Corporation: $306 million
- IBM: $272 million
- Nvidia: $206 million
Apple is its largest client, providing a little less than half of Foxconn’s revenue (with many contracts in addition to the one mentioned above). Whether you use an iPhone, iPod, iPad or a Mac computer… Foxconn very likely played a significant role in its manufacturing.
Further linking the two companies… in mid-2016, Foxconn completed a $3.8 billion deal to buy electronics-maker Sharp Corporation, which makes displays for Apple products.
Another large client is Intel. Foxconn is now manufacturing several different motherboards for this computer processing giant.
But here’s the really amazing part.
Although many of its business partners, including 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.
- In 2020, it became India’s largest electronics manufacturer.
- It’s the world’s sixth-largest employer, with an estimated workforce totaling 1.29 million.
Yet it’s virtually unknown here in the U.S… for now.
In 2020, Foxconn’s revenue exceeded $181 billion. It’s on track to break $209 billion by the end of 2021 and then $214 billion by the end of 2022. 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, nearly 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 nearly finished construction on a new manufacturing complex in Racine County, Wisconsin – its first U.S. manufacturing facility.
This is a major win for Wisconsin, America and Foxconn…
Foxconn wants to develop closer ties with America’s huge technology titans – Microsoft, Cisco, Intel, IBM and HP, among others. (Of course, it’s already heavily involved with Apple.) To do that, it’s planning on building additional manufacturing plants right here in the U.S.
The positive publicity is starting to flow for Foxconn… Unprecedented attention on its undervalued stock won’t be far behind.
On June 28, 2018, the company held a groundbreaking ceremony. And guess who was there? That’s right, then-President Donald Trump.
And there’s good reason for that. Foxconn was Trump’s poster child for “Make America Great Again.” And even though Trump is not in office anymore, Foxconn will remain a strong and rapidly growing force in the American business landscape.
Instead of building more production facilities in Asia, Foxconn is making a substantial investment right here in America.
Building the Wisconsin Foxconn complex created thousands of construction jobs.
Parts of the factory that are already built have been used to manufacture masks and other personal protective equipment for the use of police, first responders and healthcare professionals during the pandemic. And the company might use the Wisconsin facility to manufacture more than cellphones and electronics…
In February 2021, Foxconn signed an agreement with electric car firm Fisker to build an electric car together. And in another move to bolster its position in North America, Foxconn purchased a plant in Ohio to build the new car.
The Wisconsin facility’s versatility ensures there will be a number of catalysts for growth along the way as the company keeps increasing its production capacity… even into industries well outside Foxconn’s current scope. And the purchase of a new plant in Ohio shows the company is committed to North American expansion.
Foxconn may even become one of the hot-button stories that seem to spread across the country like wildfire.
Foxconn will continue to get major press that could drive its stock much higher.
I don’t know how much pressure (if any) former President Trump put on the company. But this secretive, under-the-radar company is about to tell the world what it’s up to…
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…
With all this in the works, you can see why the forward-thinking firms and investors on Wall Street are loading up on shares… even while the company is trading off U.S. exchanges.
BlackRock is a believer, holding nearly 2% of the company’s shares – more than 27.7 million, in fact. Vanguard is another major shareholder, with a roughly 2.5% stake (25 million shares).
They both 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 visibility. And guess what that would mean for its $4 share price?
As millions of American investors got direct access, it would likely go through the roof.
In short, the elephant in the room 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 Play.”
I’ll get into the exciting way to buy the stock in a moment. But first, we’ll look at a few more reasons 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 does. But behind the scenes, it has its hands in almost everything.
We call it a pick-and-shovel company.
The term is 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 found… the gold.
And Foxconn is making billions of electronic picks and shovels.
The company’s products don’t sound very glamorous – cooling and heat-dissipation systems, microspeakers and directional sound components, light metal and plastic materials, injection molding, and precision micromotors and microactuators.
If all that doesn’t make sense to you… just think of it as a company that makes a lot 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
- Virtual reality
- Medical equipment technology
- Gaming technology
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 China, Foxconn can extend into overseas markets with only a fraction of the logistical complexity a U.S.-based company would encounter.
For example, Foxconn owns 63% of FIH Mobile, a Hong Kong-based manufacturer of Android phones.
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, last year, Foxconn began manufacturing the iPhone 12 in India.
Producing the iPhone in India means Apple can avoid import duties of 20% and meet local sourcing rules that would allow it to open its own stores in the country.
There’s a tremendous amount of potential upside here for Apple… and Foxconn. India is a rapidly growing global economy with a burgeoning middle class and a total market size of nearly 1.4 billion potential customers. 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 the new iPhone 13.
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
Foxconn has been having a great 2021 so far. Bloomberg projects that this year’s revenue will surpass $209 billion. That’s up 15% over 2020’s revenue.
Net income and earnings per share are also holding steady, set to grow in the coming years as we recover from COVID-19.
And that’s without any complete production facilities here in the U.S.!
Wait until the Wisconsin plant is up and running, with other global 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 11.67.
- It has a 3.61% dividend yield.
- Its price-to-book ratio is 1.17 (meaning it is selling for almost exactly what the company’s assets are worth).
- Its price-to-sales ratio is a ridiculously low 0.26 (anything below 1.0 is considered a bargain and a rarity among high-growth companies).
- Its total-debt-to-EBITDA ratio is only 3.94 and shrinking from 4.79 at the end of 2020. (EBITDA stands for earnings before interest, taxes, depreciation and amortization.)
Yet this stock trades for less than $4 a share.
And to top it all off, Foxconn has amassed one of the largest patent libraries on electronic technology of any company in the world. It has 36,241 patents in the U.S. alone and 108,749 registered in total.
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 $126 billion annually by 2025… Research firm Strategy Analytics claims that driverless vehicles will eventually create $7 trillion worth of economic activity…
And Business Insider Intelligence forecasts there will be more than 64 billion IoT devices on Earth by 2026 – with a potential market of $15.7 billion by the same year… not to mention a compound annual growth rate of 79.1% between now and 2026.
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 $4, 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 TT.
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 less than $5 per share.
In short, the fact that Foxconn is listed on the Taiwan exchange means that – for now – you can get shares FAR cheaper than you could if they traded on a U.S. exchange.
And if you are willing to take the couple of extra steps to buy it, it will give you the chance for much bigger profits down the road. And I’ll be very direct about this.
A lot of people are unwilling to go the extra mile to buy this stock. That’s why they will miss out, while you will be in the perfect position.
So here are the steps you need to take.
First, the current stock price can be accessed from your brokerage account or any financial website. You will see Foxconn’s price listed in Taiwanese dollars. The Taiwan currency is called the New Taiwan dollar (written as NT$). As of this writing, US$1 is equal to about NT$28. And, as of this writing, the share price of Foxconn is around NT$108.
When this is converted into U.S. dollars, it is just under $4. 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.
The 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 make 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 you may have to meet:
- A minimum increment of 1,000 shares per purchase may be required (so the minimum investment would currently be slightly more than $4,000).
- A higher or additional brokerage fee may be charged.
- A Taiwan market fee (1% markup) may also be charged.
Note: We recommend using one of these 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 which 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 your 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 than their standard fees on U.S. stocks.
- Ask whether 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 whether 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 price immediately back into U.S. dollars. The money you spent 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 GDR that is the equivalent of two shares on the Taiwan Stock Exchange. In other words, shares of HNHPF trade for about $8, roughly double the price 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 less than $5.
And that price may change very soon.
Foxconn’s Big Move Into America
As you’ve seen, Foxconn is pushing into America. It has a facility in the works in Wisconsin. Then-President Trump was there for the groundbreaking ceremony and spoke at the gathering along with the company’s founder, Terry Gou.
Between Foxconn’s Wisconsin plant and its new Ohio electric vehicle plant, it’s clear the company has plans for North America and beyond. Foxconn’s production facilities could soon be found in Mexico, India and all over the world.
In other words, the company is going GLOBAL.
And 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 and mutual funds – as well as regular investors – will have direct access.
You can bet the stock will no longer trade at its minuscule 0.26 price-to-sales ratio.
The stock could rise dramatically as a result. So by taking these extra steps today, you’ll be in a perfect position if and when this listing on a U.S. exchange occurs.
That’s why we believe this stock is perfect for the Single-Stock Retirement Play.
Don’t Let Your Single-Stock Retirement Play 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 they were “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 is let 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 Co. Ltd. (TWSE: 2317 TT) – i.e., Foxconn – using a limit order. Find out what the current bid and ask prices are 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 Updates: https://oxfordclub.com/publications/communique/?archive=update