Wall Street Unplugged
Episode: 522June 6, 2017

Finding the next “Nuts & Bolts” company

“There’s only about one-hundred thousand of them…” he said.At the time, I was standing in the middle of what’s known as the largest building in the world – Boeing’s airplane-assembly facility in Everett, Washington.I was extremely interested in these planes, to say the least…The demand for Boeing’s new and revolutionary-efficient 737 is off the charts. It’s the company’s fastest selling jetliner in its 100 plus years of existence. The most recent model sells for just north of $119.2 million. And I was standing directly under the wing of one.In my 20 plus year career of investing, visiting different sites and projects all around the world, nothing was more intriguing to me than this one.Dan Schull, the Sales Director at Boeing, and probably one of the most important figures in the $6 trillion aerospace and defense industry, was personally guiding me (along with a small group of investors) on a private tour of the world-class property.Now at this point in the story, most would assume I am about to dive into why Boeing might be a top-notch investment.After-all, the aerospace industry is in a supreme bull-market as we speak…But that’s not why I’m here.What caught my attention… and what today’s show is all about is that “100,000” number.It was music to my ears when Dan mentioned it.That’s the number of parts it takes to build each one of Boeing’s next-generation 737 MAX aircrafts.You see, those 100,000 parts yield over 100 different publicly-traded companies.Companies I personally like to call “Nuts & Bolts” stocks.It’s something my Curzio Venture Opportunities subscribers are all too familiar with. In fact, in recent months I provided subscribers with two recommendations surrounding what I saw firsthand, on that single day.But this is still a strategy common investors constantly overlook.And it’s simply where the better opportunities are.Opportunities that have a much higher ceiling than their contracting partners that EVERYONE already knows about – companies like Apple, Microsoft, or Boeing.The strategy I unfold today focuses on the companies that actually leech onto these household names.
As the larger companies (like Boeing) gain popularity on the street, pushing the stock price higher, these behind-the-scenes “nuts & bolts” companies take part in the ride up as well.And because of their small size, share prices can often explode in a matter of 24 months.When industry leaders produce their widely known products, (Apple iPhones, Boeing 737 airplanes, Amazon’s Alexa) they don’t actually make all the parts that go into them. Instead, they outsource the majority of the pieces, often coming from smaller companies.But unlike these smaller companies, industry giants rarely ever see massive short-term gains, even in bull-markets… And rarely ever get bought out either. Because, well, they’re industry leaders.The “nuts & bolts” companies are where the real margins are.And to top it off, these opportunities fly completely under-the-radar in mainstream media – giving us the advantage.Good Investing,Frank CurzioSpecial thanks to James, Evan, and Ryan.Keep the questions coming at Frank@CurzioResearch.com with “Frankly Speaking” in the email subject line.Other topics talked about: Should we really be waiting for a market pullback?… Why it’s time to sell your FANG stocks… and one car-rental company that could pop 20% within 6 months from now.Click here to read the entire show transcript (pdf)

Stocks Mentioned

  • Amazon (AMZN)
  • Facebook (FB)
  • Alphabet (GOOG)
  • Netflix (NFLX)
  • Hertz (HTZ)
  • International Business Machines (IBM)
  • Exxon Mobil (XOM)
  • Cyrpess Semiconductor (CY)
  • Skyworks Solutions (SWKS)
  • Analog Devices (ADI)
  • Broadcom Limited (AVGO)
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