Zinger Key Points
- Gianni takes a deep-dive into the economic climate and unique challenges Mom and Pop shops face.
- Meet the "American Dream" company that has given entrepreneurs a boost (and a potential 40% in investors' pockets).
- Find out the next potential double-digit gainer on Gianni's radar...
- Discover Fast-Growing Stocks Every Month
IMMEDIATE ACCESS: You can find the transcript/video of the beginning of Episode 3 of the Monthly Milestone podcast below.
Nikia Wade: Hi everyone. Welcome to the third episode of Monthly Milestone. I am your host, Nikia Wade, and I am thrilled to have back with me our very own in-house stock expert, Gianni Di Poce. For those who have been following along, he actually got us started with the Monthly Milestone. So I'm very excited to have you back so soon. Gianni, thank you for making time for us.
Gianni Di Poce: Well, I must say I'm honored to be back for the second time in three months. So I'm glad to be here. Thank you.
Nikia Wade: That means you're doing something right. I am still one of the believers that America is one of the greatest places to live. I think that the American dream is still very much alive and real. I know so many people that have moved from different countries to America for a new opportunity and have made amazing things happen in their lives.
Gianni, can you just comment a little bit on what the economic climate is for the small mom and pop shops versus major corporations? What does the landscape look like, and what have the market's been doing?
Gianni Di Poce: Sure. Well, first and foremost, I do agree on a relative basis. America still is the land of opportunity. I just came back from a stay in Europe, and it's just such a big difference. The spirit of entrepreneurship that really is the driver of innovation and economic growth in this country. And it's really unparalleled anywhere else in the world.
But as you mentioned,they're kind of our two classes of business in this country. You have the mega cap corporations, the companies that have the ability to borrow money at much lower rates than your mom and pops. And the fact of the matter is, their business reality is much different.
So Mom and Pops still have the luxury, so to speak, of being able to have high employee turnover. So what we've seen over the last several years unfold is there's a shortage of labor now, and that is fueling inflationary pressure.
So the Fed has raised rates so much in the last 18 months or so, but a lot of these bigger companies, especially these big construction, blue collar type companies, are reluctant to let their employees go because they're worried once they do, how are we going to rehire new people?
So even though there might not be as much of a business backlog and there might not be as many business contracts coming down the pipeline, there is a reluctance to let go of valued employees, even though it might harm the bottom line in the first place.
Now, that being said, we just came out of Q2 earnings season and it's been pretty good so far. So I don't think it's as bad as some make it out to be. But I think the biggest shift when it comes to macroeconomics is that inflation isn't going away any time soon. So this is the new normal, I think.
Real Boss Moves: The American Dream Company Poised to Soar
Nikia Wade: So obviously there are many things that entrepreneurs may be facing right now. But what I find really interesting is that you had a recommendation just a few days ago of a company that really helps to support small-time entrepreneurs… people maybe who are just getting started out with an LLC.
This company has made a lot of recent moves. And in your recommendation, you also thought that there's a potential that it could give a 40% return, which is fantastic. Can you elaborate a little bit more?
I call this the “American Dream” company. Can you, without telling the name of the company, give a little bit of detail of what they are doing? What do you love so much about them? And why did you feel so confident in recommending them?
Gianni Di Poce: First and foremost, America is a country of entrepreneurship. And this company's management recently made the decision to offer free LLC formations. You know, I've had a few losses in my day, and especially when I was younger. Maybe I spent too much time worrying about that. But it was a different era. And, now, you want to do things a little more properly.
Whenever I talk to younger people getting in the game, I just say,”Listen, just start producing, and then worry about the LLC later. Let's see if your product actually sells first.”
But what this free LLC formation service did for this company is that it actually boosted their transaction volume on their overall website by about almost over 25%. And, then, obviously this company has other subscription services on the website.
So it's kind of like a loss-leading type of move they made that helped boost their subscription revenue by over 10%. I think it's around 12%. As I mentioned in my report, this is a smart move because this company recognizes the environment in which they're operating.
We started off by talking about the people that come to this country with big dreams. They do. So they pursue those dreams through the lens of entrepreneurship.
So the company added over 150,000 new subscribers in the last year, which is significant, regardless of their scales. And they're doing this by offering a loss-leading LLC formation product, which I think is very important.
Now, this company is not just about creating a business. They offer a plethora of other legal services. And let's face it; the demographics of the United States and most of the Western developed world is an aging demographic.
So what does that mean? It means you need estate planning. And this company also offers other legal services. So formation of a will, creation of a trust. Now, you can obviously talk to people and get that more in stone. But, I also think this is kind of an A.I. play because I've seen a couple of smart people in the legal space talking about how this A.I. revolution is really going to change the way people engage in paralegal documentation and the formation of things like that.
So I think this company is uniquely positioned as a sort of legal service online entity to capitalize on more secular trends that we're seeing in the broader economy.
Turning Hot Economic Climate Into a Freshly Squeezed 40% Opportunity
Nikia Wade: Now tell me this. You said that you could squeeze out 40%. You literally just released this just days ago. So this is a very hot stock recommendation. So how did you come to it being a potential 40% bagger for your followers?
Gianni Di Poce: Well, it had a pretty nasty sell-off in the last week or two, and I think it was a little bit overextended. So I think it's on sale from a technical standpoint, which is the study of chart patterns. We’re basically coming back to retest a former resistance-turned-support level. So I think we have a pretty good risk-reward ratio here. And if the economy is not going to enter into recession over the next 12 to 18 months, I do think it can make a pretty nice recovery and really just reclaim some of the prices that it was at just a couple of months ago.
So I'm not calling for it to return to its former all-time high, which is still possible. And if it does, that would represent a substantially higher return than 40%. But I figured, “Hey, let's start a little more modestly and see if we can just get back to where we were just a couple of months ago.”
Nikia Wade: Amazing. So you're saying that you feel very confident that it can potentially hit 40%, but, depending on how things go, it could shoot right past that, right?
Gianni Di Poce: Yes, there's some technical work to be done, but so far so good. It is holding that key level that I want to see it hold. And if it does, I think you could build a new base and provide long-term investors with a nice, comfortable rate of ascent.
The Great Reveal Driving Entrepreneurs + Potential Profits
Nikia Wade: I love it. Let's just rip the band-aid off and get right into the nitty gritty. What is the American Dream company? What’s your hot recommendation that you think will soar to double-digit gains?
Gianni Di Poce: So this “American Dream” company is actually...
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