Casey Research’s Dave Forest has been teasing a so-called “5G Master Key” device lately, which he says can “fix 5G’s fatal flaw.”
And according to Dave Forest, shares of the “tiny company” that makes this device “could surge exponentially” as 5G finally gets rolled out.
At one point, he even said it “could be the #1 tech stock for 2022.”
As you may already know, Forest didn’t reveal the name of the “5G Master Key” company in the presentation. You need to join his Strategic Investor service to get the ticker.
However, after looking into Dave Forest’s clues, I believe that the company he’s teasing is Gilat Satellite Networks, and in this post, I’ll show you exactly why I say this.
I’ll also show you my guesses on two other 5G companies he teased in the presentation.
But first, let’s look into the so-called “fatal flaw” Dave Forest is talking about.
Overview of Dave Forest’s Prediction (Is There Really a “Fatal Flaw” With 5G?)
The gist of Dave Forest’s prediction is that 5G technology has a lot of potential benefits, but it also has a “major flaw.” One that the “tiny company” he’s tracking can fix using its “proprietary tech,” which he calls the “5G Master Key.”
In terms of the potential benefits of 5G (which is the fifth-generation technology standard for broadband cellular networks), Dave Forest suggests that, aside from making downloads faster, it could help enable numerous “groundbreaking technologies.”
“But there’s a lot more at stake than your phone’s download speeds.
Because trillions of investment dollars hang in the balance…
Groundbreaking technologies like smart buildings… traffic lights… smart homes… self-driving cars… airplanes… life-saving remote surgeries… and cutting-edge military innovations…
All depend on seamless 5G connectivity…”Source: https://secure.caseyresearch.com/?cid=MKT546054&eid=MKT639916&assetId=AST184387&page=2
As for the so-called “flaw” in 5G, what he’s talking about is how the 5G signal isn’t always available depending on where you’re located.
During the presentation, Forest demonstrated how fast it can be to download a movie with 5G if you’re outside in the street compared to 4G.
However, he also showed how his 5G signal was lost after going inside.
So the “fatal flaw” he’s talking about centers around connectivity limitations that he believes are holding this technology back.
“Unless millions of Americans are willing to stay outside…
In close proximity to a 5G antenna like this… we’re not going to see ANY 5G revolution at all.”
“You see, the short waves that 5G WiFi uses to pull off lightning-fast internet…
They’re not suitable for wide-area coverage.
Right now, 5G signals can be blocked by virtually any object…”
I’m not a 5G technology expert, but according to Dave Forest, the reason for this problem has to do with how 5G uses shorter wavelengths than 4G.
Forest explained that while the “short waves” are what make 5G faster, this is also what causes the signal to be blocked by solid objects like walls, doors, and even trees.
“But the short waves that allow 5G to transmit massive amounts of data in just seconds…
Are also its greatest weakness .
As I mentioned…
These SHORT waves are easily blocked by any solid object like a door, a wall, or even a tree.”
According to Forest, this problem leaves companies with two choices.
Either set up “tens of millions of cell antennas every few hundred feet” or use the “out-of-this-world solution” the company he’s recommending has developed.
“And that’s left the big telecoms with two choices:
One: They can build and place tens of millions of cell antennas every few hundred feet.
Connected by over 1.4 million miles of fiber optic cables…
Enough to circle the Earth 353 times.
Which — by the way — could take YEARS.
Or they can simply turn to the tiny firm I’ve discovered… and their ‘out-of-this-world solution’ — which could solve the 5G flaw, with the turn of its master key.”
What “solution” is Dave Forest talking about?
According to Dave Forest, the solution is a technology called “The SKY,” which involves microsatellites that hover above the earth and distribute 5G signals.
How does it work?
The general idea (at least, from what I can gather) is that these microsatellites are equipped with the technology he calls “The SKY” and launched into orbit. And this technology can supposedly help extend the reach of 5G internet.
“This firm’s technology can transmit and extend short-range 5G signals…
Then blanket huge areas with those extended signals for wide coverage and seamless connectivity…
Using microsatellites that hover above Earth…
This incredible technology is called: The SKY.
Here’s how it works.
Once the SKY is launched into orbit…
It can distribute 5G signals over a wider area where earth-based cells, towers, and cables can’t cover.”
The SKY or the ‘5G Master Key’ — ‘takes 5G to the edge…'”
According to Dave Forest, the technology also involves an ordinary-looking “black box,” which he shared an image of in the presentation.
“The entire trillion-dollar 5G rollout hinges on this cutting-edge device I call:
The ‘5G Master Key.’
It’s a miraculous technology that looks like an ordinary black box…
That promises to unleash the true power of 5G.”
What “black box” “SKY” device is he talking about?
To answer that, let’s first analyze the clues Dave Forest shared about the company itself. Then, I’ll show you what device he appears to be referring to.
What “5G Master Key” Stock Is Dave Forest Teasing?
So far, we know that the company Dave Forest is teasing has come up with a technology that can help increase 5G coverage using microsatellites.
Aside from that, Forest said in the presentation that the company is “more than 1,000 times smaller than Apple” and that its shares are trading “for around $10.”
He also said that it has numerous patents:
“Along with the incredible story of how one tiny company — with over 124 patents…
It will soon deploy this technology to fix 5G’s fatal flaw…”
And he discussed some of the contracts it has in place:
“It’s inked multi-million-dollar contracts with T-Mobile and Sprint.
Including major networks in China, U.K, France, Japan, Australia, Russia, and Brazil.”
Lastly, the transcript of Dave Forest’s presentation contains specific clues about deals the company has made with different countries, including Peru.
“And in Peru, the company’s deal is worth $285 million – to provide connectivity support.”
What could Dave Forest’s pick be?
As usual, I started my research by analyzing the most specific clue, which in this case was the clue about a $285 million deal the company did with Peru. And that led me to a press release confirming that the deal involved Gilat Satellite Networks (Nasdaq: GILT).
From there, I looked into the other clues Dave Forest shared, and they all seem to match Gilat, so this appears to be the “5G Master Key” company he’s teasing.
How do the other clues match?
For starters, Gilat, which is headquartered in Israel, describes itself as a “leading provider of products and services for satellite-based broadband communications.” So it specializes in the industry Dave Forest’s pitch centered around (i.e., satellite-based internet).
Second, the company’s market cap is currently “more than 1,000 times smaller” than Apple’s. So Gilat matches his clue about the company’s size.
And third, Gilat is currently trading at just over $6.50 a share, matching his clue about how the company is trading “for around $10.” And as a side note, it looks like the presentation was first recorded over a year or so ago, so that might explain why he said “around $10” instead of something closer. But either way, it matches what he said.
Dave Forest did share some other clues, too.
And not all of them appear to be an exact match.
For example, it’s unclear if the company has had, or still has, deals with all of the organizations he mentioned. And while the company has numerous patents, I haven’t been able to verify the exact number Dave Forest shared.
What about the “device” Dave Forest showed in the presentation?
Dave Forest didn’t reveal the name of the device he was referring to in the presentation, and Gilat has numerous products, but the closest match seems to be its SkyEdge II-c system.
The reason I say this is that the image the company shows on its site roughly matches what Dave Forest shared in the presentation. And while I’m not an expert on this technology, the way the company describes it seems to line up with what Forest described.
The page on the Gilat website I just shared doesn’t mention 5G when describing SkyEdge. However, I found a different page on the company website (which was published on April 8, 2021) that says its SkyEdge II-c platform is “5G ready.”
“Gilat is making significant headway in the evolving 5G ecosystem that will directly influence the way people live and work. In fact, we have demonstrated numerous times that our SkyEdge II-c platform is 5G ready.”Source: https://www.gilat.com/blog-5g-and-satellite-connectivity-go-hand-in-hand
So to sum it up, the company Dave Forest’s teasing appears to be Gilat Satellite Networks, and the “device” he’s referring to could potentially be its SkyEdge II-c platform.
Of course, that’s just a guess based on my research, and I can’t guarantee I’m right. So if you want to know for sure, the best thing to do would be to see his research report. Specifically, the one called “The 5G Master Key: How to Cash in as 5G Sweeps the Globe.”
The only catch is that to access that report; you need to join his paid service, Strategic Investor, for $49. You get more than just the ticker if you decide to do that, though.
You also get all the research on his pick, details about exactly what he’s recommending, and access to other recommendations and resources he shares with subscribers.
I’ll go into more detail on that shortly.
But first, let’s discuss the other two picks Dave Forest teased in the presentation.
Recommended: Go here to see my #1 rated stock advisory of 2022
What Are Dave Forest’s Other Two 5G Picks?
Aside from the “5G Master Key” company, Dave Forest teased two other 5G-related companies in the presentation.
Forest details these picks in a report called “Two More 5G Stocks Set To Explode,” so that’s probably the best way to find out what they are. However, I looked into his clues and managed to uncover at least one of them (possibly even both).
Here’s what he said about the first company in the above report:
“So I dug up the two best pick-and-shovel plays for the $12 trillion 5G sector.
The first one’s the biggest player in critical 5G infrastructure.
The company operates a total of 180,000 cellular sites in 19 different countries.
And its revenue has grown 13% per year over the past 5 years, leading the stock to deliver more than 3 times the performance of the S&P 500.
But this is just the beginning…I expect the company to grow even more as the 5G scramble gains even more steam.
And that’s why Yahoo Finance wrote that ‘5G Will Be A Game-Changer’ for this company.”
With this pick, I started my research with the Yahoo Finance quote since that was the most obvious clue. And my research suggests that Dave Forest was referencing this Yahoo Finance article about how 5G will be a game changer for American Tower Corporation (ticker: AMT).
American Tower is a real estate investment trust (REIT) that owns and operates “roughly 180,000 cell towers” throughout the U.S., Asia, Latin America, Europe, and the Middle East.
So that is most likely the first company in the “Two More 5G Stocks Set To Explode” report. And here’s what Dave Forest said about the second company in this same report:
“The second company focuses on ‘small cells,’ a critical piece of 5G infrastructure expected to serve 160 million Americans in the coming years.
That’s a 10X growth rate in ‘small cell’ tech. This company is set to capture much of that explosive growth.
And they have an all-star list of mega clients: AT&T, Verizon, and T-Mobile.
So you can see why Barron’s said this stock is among those ‘set to benefit first’ from the 5G boom.”
What could this company be?
The article Dave Forest mentioned appears to be this Barron’s article, which is difficult to read without a subscription, but it lists a handful of companies.
And one of them is Qualcomm (QCOM), which looks like a possible match.
I say this because Qualcomm is a San Diego-based company that makes semiconductors and software related to wireless technology, including 5G.
And it seems to be the closest match overall.
That said, this is the pick I’m least confident about, given how limited Dave Forest’s clues were about this pick. So it could just as easily be something else.
In any case, as with his other picks, the best way to know for sure would be to join his Strategic Investor service and see the reports he put together. So let’s look at how this service works in case you’re considering joining.
What Is Strategic Investor?
Strategic Investor is Dave Forest’s flagship stock advisory service, which is published by Casey Research and focuses on uncovering the “next big trends.”
Dave Forest is a geologist, financier, and entrepreneur who runs several investment research services at Casey Research, a Florida-based financial publishing firm.
And each month, Forest shares his latest market research and investment ideas with subscribers like the one he teased in the presentation.
As a subscriber, you get access to monthly issues of the service, access to the current Strategic Investor model portfolio, and (among other things) research reports that break down his latest stock picks.
Some of Dave Forest’s picks include warrants, too.
I know this because I’ve looked into numerous Dave Forest presentations on this site, and his most recent presentation centers around “Bezos’ 7th Deal,” which is a warrant play.
In short, warrants are similar to options in that they are derivatives that give you the right to buy the underlying asset (i.e., shares) at a set price on or before the expiry date. And this is one of the main types of investments Dave Forest is known for.
So if you want to know more about his latest warrant recommendation, see the article I just shared, where I break down his latest pick in detail.
How do you access the service?
To get started with Strategic Investor, you just need to visit the Casey Research website and navigate to the service’s order page. Or you can join through one of Dave Forest’s presentations, like the one we’ve been discussing.
The latter option typically works out cheaper as it costs $49 for the first year instead of the retail price, but it all depends on which page you sign up on.
Dave Forest’s “5G Master Key” presentation centers around the idea that 5G has a “fatal flaw” involving coverage and how he believes there’s one “tiny company” that could “could solve the 5G flaw” with its “master key.”
The so-called “master key” he’s referring to is a satellite-based technology that he says can distribute 5G signals over a wider area where earth-based cells, towers, and cables can’t cover. And he refers to this technology as “The SKY.”
As mentioned, Forest didn’t reveal his pick in the presentation. Instead, he shares the details in a report that comes with a Strategic Investor subscription. But my research suggests that his pick is Gilat because this is the company that most closely matches his clues.
Forest also mentioned two other companies, and based on what he said in the presentation, these could be American Tower Corp and Qualcomm, although I’m less sure about the last one, given the lack of clues.
Either way, I hope what I’ve discussed has helped shed some light on the presentation and gives you some ideas about what his picks might be. Thanks for reading.