The Single-Stock Retirement Play

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 under $4. Yet the company’s revenue topped $60.3 billion in Q4 2023 alone. 

As you’ll see in this report, this stock trades incredibly cheaply for a number of reasons. And I believe that will change dramatically in the years ahead.

The company has been locking up numerous contracts with heavy hitters in industries ranging from technology to electric vehicles (EVs). It’s been establishing new factories around the world – from India and Mexico to Europe and the United States.

And yet, it still trades for a positively minuscule share price. That’s because, despite its size, it still doesn’t trade on American exchanges.

But you know about it now, and more importantly, you know how to buy it…

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. The Internet of Things, or IoT, is linking everything – your phone, your TV and even your refrigerator – to the World Wide Web.

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 IoT.

Basically, anything embedded with electronics can connect and exchange data.

The people creating these new tech breakthroughs have generated some truly outrageous fortunes:

• Jeff Bezos, Amazon, $194.3 billion net worth
• Bill Gates, Microsoft, $128.8 billion net worth
• Elon Musk, Tesla, $196.6 billion net worth.

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

For example, 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 hit the public markets in 1997, your stake would have been worth $10.5 million (prior to the company’s 20-for-1 stock split in June 2022).

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’ worth of products worldwide, someone has to create and manufacture 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 TW).

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

Over the past couple of years, the stock has trended downward, creating a buying opportunity… and several Wall Street firms have been quietly taking advantage and scooping up shares. For instance, State Street, BlackRock, and Vanguard each hold millions of shares.  

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 even Tesla.

Yet Foxconn is actually more involved in creating our high-tech world than any of those companies, except maybe Tesla – but even that might be changing soon…

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 around the world. 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 the biggest contracts Foxconn has signed in its history as a company. You’ll see that it’s truly a “who’s who” of the tech world.

• Cisco ($501 million)
• Dell ($1.91 billion)
• Microsoft ($826 million)
• Lenovo ($1.00 billion)
• Intel ($67 million)
• Sharp ($341 million)
• IBM ($102 million)
• Hewlett-Packard ($1.27 billion)
• Motorola ($88 million)
• Sony ($534 million)
• Nokia ($432 million)
• Amazon ($638 million)
• Apple ($27.63 billion)

In all my years of investing, I don’t think I’ve ever seen a $4 stock make this many deals, especially not with all of the biggest players in one of the world’s largest industries.

Apple is Foxconn’s largest partner by far. If you use an iPhone, iPod, iPad or a Mac computer… Foxconn very likely played a significant role in its manufacturing.

Whether your phone’s or laptop’s parts were made in India, China, Taiwan or the U.S., they were likely made by Foxconn.

And Foxconn has more than 36,000 patents in the U.S. alone – it holds 108,749 patents in total worldwide – to ensure that its business is protected for the foreseeable future.

And it takes only a glance at what Foxconn has patented to see that it will become the driving force behind the tech industry.

It holds patents for technology in pretty much every modern gadget you can imagine – circuit board surge protectors, lithium-ion batteries, microchips, a device for connecting circuits, image capture for video on smartphones, unmanned aerial vehicles, fiber-optic transmission, printing devices, cleaning robots, rotating display screens for computers, faster flash drives, smart TVs… and much, much more…

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 big tech companies have to sign deals with Foxconn simply because it owns the intellectual property rights to some component or part that they need.

But it’s Apple or Dell whose logo goes on the box or on the device. So Foxconn remains almost completely unknown to the general public.

But that won’t last much longer…

Foxconn is already a huge global presence. But it’s growing at a remarkable pace…

• 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 one of the world’s largest employers, with an estimated workforce totaling 767,000 people.

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

The company already generates about $200 billion annually and that has been growing at a CAGR of 4.77% for the last three years alone. But the real growth is just getting started…

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 1848. 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
• 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 brands 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, particularly in Asia, with only a fraction of the logistical complexity a U.S.-based company would encounter.

For example, in 2020, the company began manufacturing the iPhone 12 in India. The move was much easier for the Taiwan-based Foxconn than it would have been for, say, Microsoft or Apple. India has remained a major manufacturing site for the iPhone ever since, with Foxconn factories cranking out iPhone 13 and 14 models…

Producing the iPhone in India means Apple can avoid import duties of 20% and meet local sourcing rules that will 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 1.4 billion potential customers. Foxconn has said it will have enough capacity to make all the iPhones needed for India’s market.

That puts Foxconn firmly in a position to benefit from the global launch of every new generation of iPhone.

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

The Rags-to-Riches Story Behind It All

Despite Foxconn’s colossal global success, it began with a humble factory worker named Terry Gou.

Gou was the blue-collar son of a police officer, and he is by every measure a pretty ordinary guy. Except for his one-of-a-kind work ethic, that is. Right after college, he worked a grueling job at a grinding wheel in a manufacturing plant.

After that, Gou moved into sales. And he was a natural, so famously persistent that security often had to escort him out of the building. He has never been one to take no for an answer.

But as many hard-driving, determined people do, Gou decided to strike out on his own and start his own business.

With just $7,500 in seed money that he managed to scrounge together, he got to work. And he founded a new kind of tech company…

He knew he could not compete directly with the Big Tech giants – Apple, Amazon, Samsung, Google and the like. But he knew that if he could quietly do business with these tech giants, he might just be able to turn his own venture into a successful company.

His business plan boiled down to three basic principles…

1. Quietly build up one of the world’s largest collections of patents for cutting-edge technological innovations.
2. Use these patents to convince all the Big Tech companies to sign contracts that allowed his company to build the components for their products.
3. Renew those contracts and rake in billions of dollars from the deals.

With those principles in place, Terry Gou got to work.

He started small, with computer chassis. A chassis is the frame that holds the guts of a computer.

It’s simple hardware, more or less a computer case. But Gou was able to secure contracts to build chassis for Hewlett-Packard, IBM, Compaq and Apple.

Those contracts landed the young Foxconn millions, all while allowing it to continue flying under the radar.

Gou quickly earned a reputation as one of the most aggressive entrepreneurs in the world. And his sales contracts, both past and present, prove it…

• Foxconn signed an agreement to build hundreds of thousands of devices for Amazon’s Fire TV streaming line.
• It manufactures Google’s flagship Pixel 7 phone.
• It built both the GameCube and Switch consoles for Nintendo.
• It built the PlayStation 4 for Sony.
• It has a deal with Intel to build central processing units and computer cooling systems.
• It makes hard drive connectors for Dell.
• It’s working on EVs with Yulon Motor Co., which is known for building Nissan-branded vehicles.
• Most impressive of all, it has a $27 billion contract in place to put its components inside iPhones, iPads and other Apple products worldwide!

The One Stock to Retire On

Foxconn has had an incredible past few years, and 2023 is shaping up to be no different. Look at these financial metrics for Foxconn, all outstanding: 

• It’s trading for a price-to-earnings ratio of only 13.5. 
• It has a 2.57% dividend yield. 

• Its price-to-book ratio is 1.26 (meaning it is selling for almost exactly what the company’s assets are worth). 
• Its price-to-sales ratio is a ridiculously low 0.27 (anything below 1.0 is considered a bargain and a rarity among high-growth companies). 
• Its total-debt-to-Equity ratio is 0.56. 

Yet this stock trades for about $4 a share. 

According to Statista, the AI market will be worth $1.8 trillion by 2035…

Research firm McKinsey claims that driverless vehicles will create $300 billion to $400 billion in revenue by 2035…

And Business Insider Intelligence forecasts that 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 about $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 Co. Ltd. (i.e., Foxconn) trades on the Taiwan Stock Exchange under the symbol 2317 TW.  

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 $4 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. Taiwan’s currency is called the New Taiwan dollar (written as NT$). As of this writing, US$1 is equal to about NT$32 and the share price of Foxconn is around NT$145. 

When this is converted into U.S. dollars, it is just $4.54, just above the $4 it ordinarily trades at. 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 stocks that trade in only 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 factors you may have to consider: 

• A minimum increment of 1,000 shares per purchase may be required (so the minimum investment would currently be about $4,000).
• A higher or additional brokerage fee may be charged.
• A Taiwan market fee (a 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 Foxconn trading as Hon Hai Precision Industry Co. Ltd (TWSE: 2317 TW).
  • 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 TW.
• 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 global depositary receipt (GDR) that is the equivalent of two shares on the Taiwan Stock Exchange. In other words, shares of HNHPF trade for about $9 as of this writing, around 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 $4. 

And that price may change very soon. 

Let me explain… 

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 TW) – 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 FAQs: https://oxfordclub.com/2019/01/your-foxconn-questions-answered/

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