Today I’m looking into a Lou Basenese presentation that centers around “Area 52” and a “little Silicon Valley-based quantum company” he’s bullish on.
Although “bullish” may be an understatement considering some of the bold claims Basenese made in the presentation… this one was a doozy.
To summarize, Basenese said that he “could easily describe” the technology inside “Area 52” as “on par with the discoveries of fire, the wheel, the internet, and flight.”
And he said that investors in this “era-defining technology” could make a “potential fortune,” likening it to early investments in companies like Amazon, Netflix, and Tesla.
“Well, investors in Area 52’s era-defining technology could make a potential fortune — like the vast fortunes created by other era-definers like Amazon, Tesla, and Netflix…”
What’s he teasing?
As expected, Basenese didn’t reveal his pick in the presentation. Instead, he shares it in the “Quantum Profits Report,” which comes with a Digital Fortunes subscription for $99.
But I looked into his clues, and I think I’ve figured it out.
Before we get to that, though, let’s unpack Basenese’s presentation, starting with the whole “Area 52” thing. Then, I’ll show you what stock I think he’s teasing and why.
What Is “Area 52?” And What “Quantum Technology” Is Basenese Talking About?
One of the central themes of Lou Basenese’s presentation is that a quantum-based super-technology is being tested in what he’s calling “Area 52.”
Basenese was quick to clarify that he’s NOT talking about UFOs or anything to do with Area 51 in Nevada. Instead, he explained that Area 52 is his own “codename” for a 52-mile stretch of Chicago where the “National Quantum Internet” is being tested.
“Area 52 is my own codename.
Codename for what?
For the location of the U.S. government’s 52-mile test loop for a “National Quantum Internet.”
The National Quantum Internet operates under the purview of the Department of Energy (DOE), running 26-miles in each direction of the southwest Chicago suburbs — from the Argonne National Laboratory to the Boughton Road Toll Plaza… and then back again.”
Is “quantum internet” even a real thing?
As it turns out, yes.
According to the Department of Energy (DOE) website, the DOE announced a blueprint for U.S.-based Quantum Internet in July 2020.
I’m no quantum physicist… (lol), but my understanding is that the plan involves creating a faster, smarter, and more secure internet. And the article I just linked to states that a “52-mile testbed” was rolled out in Chicago to test this new internet.
So, long story short, this is what Lou Basenese is referring to in the presentation.
What’s the big deal?
Quantum computing (in general) is essentially the next evolution in computing technology. Instead of processing information in 1s and 0s like regular computers, quantum computers use quantum bits (or qubits), which can allow them to solve incredibly complex problems in way less time.
And Lou Basenese believes that “Area 52’s technology” (AKA quantum technology) could “lead to humanity’s most consequential and important discoveries ever.”
“See, I believe Area 52’s technology will ultimately lead to humanity’s most consequential and important discoveries ever…
I mean the really big discoveries…
Like immortality, teleportation, brain-computer interface, holograms, and interstellar travel.”
He also says that without this technology, the most promising economic drivers of this decade “could become historic flops.”
“It’s a bold forecast, for sure.
Yet without the technology inside of Area 52…
The most promising economic drivers of the 2020s — i.e. artificial intelligence, self-driving cars, advanced robotics, regenerative medicine, augmented reality, million-mile batteries, drone deliveries, unhackable networks, commercial space flight, Mars missions, and beyond — could become historic flops.”
Safe to say he’s bullish on quantum technology in general.
But what’s he specifically recommending?
In the presentation, Lou Basenese said he’s “urging investors to go straight to the source of the Quantum Internet’s miraculous power.” And while he doesn’t specifically say it, the presentation (strongly) suggests that this “source” is “quantum microchips.”
What’s a quantum microchip?
“Regular” microchips are used in the electronic devices we commonly use, and from what I understand, quantum computers can use microchips too. Although there are significant differences given that quantum chips contain qubits. And these qubits need to be kept isolated from any interference and stored at extremely low temperatures.
That’s my understanding of a quantum chip, anyway.
In the presentation, Lou Basenese said that he believes quantum microchips “stand among the greatest technological breakthroughs in history” and said they perform the same tasks as existing chips but “many millions of times faster.”
“Quantum microchips perform the same tasks as existing chips…
Only quantum microchips have the potential to be many millions of times faster.”
He also talked about how “quantum technology” (in general) has three “superpowers.”
- The first so-called “superpower” he listed was that quantum technology is impervious to being hacked, making it potentially more secure than existing technologies.
- Second, Basenese said that quantum technology travels at “light speed” given that quantum data remains in an “undecided state” until it’s needed due to quantum superposition.
- Third, he says that quantum technology has “godlike intelligence” because quantum computers are able to solve “infinitely complex” problems.
So that pretty much sums up Lou Basenese’s presentation.
To recap, “Area 52” is Basenese’s “codename” for Quantum Internet. And he suggests that the best way to take advantage of the overall quantum technology trend is through quantum microchips because, without them, many modern technologies and projects would flop.
“Without quantum microchips, I believe the most promising economic drivers of the 2020s — i.e. artificial intelligence, self-driving cars, advanced robotics, regenerative medicine, augmented reality, renewable energy, unhackable networks, Mars missions, and beyond — could become historic flops.”
What company is Basenese teasing?
Let’s find out.
What “Quantum Microchip” Company Is Lou Basenese Teasing? (Revealed)
As mentioned earlier, Lou Basenese didn’t reveal his pick in the presentation. So if you want to find out for sure, you’d have to join his service, Digital Fortunes.
But I looked into his clues to see what I could find.
I started by searching the images he shared of what appeared to be the company’s headquarters and several other related pics. But that turned up nothing.
So from there, I looked into the other hints he dropped. And after an hour or so of searching… I still didn’t manage to find anything.
Here’s an overview of Lou Basenese’s clues:
“As it stands, only five companies have developed fully operational quantum microchips — Google, IBM, Intel, Rigetti, and IonQ… yet none of them are licensing their chips for wide-scale consumer applications.
Fortunately, a little Silicon Valley-based company is seizing the moment…
With its proprietary quantum science, guarded by 298 patents…
This rising superstar (pictured below) is helping major chip manufacturers produce quantum microchips for broad-based usage.”
“This company is small — trading on the Nasdaq for only 0.03% the size of Amazon.
The better news?
I believe a major licensing deal could be announced any minute — on (or before) May 10, 2022.
The best news?
If I’m correct, the licensing deal will be with one of the following deep-pocketed, Big Tech giants…”
“Its sales are set to rocket from $400,000 in 2021…
To upwards of $58 million in the days ahead.”
Those were somewhat tangible clues, for sure. But despite scouring the internet, nothing seemed to turn up (maybe I needed a quantum computer).
I even looked back through past stock teasers I’d written about related to quantum computing to see if any of those companies matched. Nope.
So, in the end, I almost called it quits on this one.
But then, a kind of “stock sleuthing miracle” happened. After running a Google search for one of Lou Basenese’s clues, I stumbled across a company called Atom Computing:
But before you get too excited… that’s NOT the company!
The first thing I did after running the above search was look for the company’s stock ticker to find out what sort of market cap it had.
And that led me to an entirely different company with a similar name, called Atomera Incorporated (ATOM), which DOES fit Basenese’s description.
What are the odds of that!?
To be clear, Atom Computing (a private company) is a 100% separate company from Atomera Incorporated. The two have nothing to do with each other.
And I’m guessing the reason Atomera Incorporated showed up when I ran the above search is that this was the closest matching public company for my search.
In any case, it was a fluke.
And here’s how Atomera Incorporated matches Basenese’s clues:
- For starters, Atomera Incorporated is based in Los Gatos, California (which is in Silicon Valley). And the company describes itself as a “semiconductor materials and intellectual property licensing company” on its about page.
- Second, Atomera has created a “patented, quantum engineered material called Mears Silicon Technology™ (MST®).” And from what I understand, this is designed to improve the performance of semiconductor devices and make them more efficient.
- Third, the company’s March 2022 investor presentation states that it has 301 patents issued and pending.
- Fourth, the “target customers” and “partners” listed in the same investor presentation show many of the same manufacturers Lou Basenese showed in his presentation.
- Lastly, the company’s 2021 fiscal year revenue was $400,000.
Ironically, the very clue that (by fluke) led me to Atomera Incorporated in the first place is the one I haven’t been able to verify (the one about $58 million in potential future sales).
However, I did manage to find a press release on Yahoo Finance about a “new Joint Development Agreement with a major semiconductor foundry.”
The article doesn’t mention which company the agreement is with, but it does seem to confirm another Basenese’s “licensing deal” clue.
So, to sum it up, I believe that Atomera Incorporated is Lou Basenese’s “quantum technology” pick because it matches almost all of his clues (like a glove).
Of course, that’s ultimately just a guess.
If you want to find out for sure, the best idea would be to check out Lou Basenese’s service, Digital Fortunes. Because if you join this service for $99, you get access to a research report he put together about his pick called “The Quantum Profits Report.”
What Is Digital Fortunes?
Digital Fortunes is a stock advisory service run by Lou Basenese of Trend Trader Daily that’s focused on technology trends. And as a subscriber, you get access to Basenese’s latest investment research, stock picks, and tech-related market insights.
A subscription to Digital Fortunes costs $99 per year if you sign up through the “Area 52” presentation, but there are other options that come with different bonuses. And according to Basenese, the goal is to help you stay on the right side of technology trends.
“The goal of Digital Fortunes is simple…
To make sure you’re on the right side of every technology trend…”
How does it work?
I recommend seeing my complete write-up of Digital Fortunes for all the details. But the gist of it is that each month, subscribers get Lou Basenese’s latest research and picks, as well as a model portfolio, updates, and research reports (including the one mentioned earlier).
Is it worth it? Whether or not it’s worth joining is something only you can decide because it depends on what sort of companies you’re interested in learning about.
I’ve written about several different presentations Lou Basenese has released over the past year. For example, I’ve written about his “VLEO,” “iPhone Killer,” and “Appleverse” picks.
So check out the page I just linked to if you want to get a better feel for what types of companies he has recommended.
In any case, Lou Basenese’s main focus is tech, and the service comes with a 30-day refund policy, according to the Trend Trader Daily website. So while there’s no guarantee you’ll make money, it could be worth a look if you’re interested in emerging tech companies.
Who Is Lou Basenese?
Louis (Lou) Basenese is a former Wall Street Analyst turned stock picker who runs a site called Trend Trader Daily.
His flagship service is Digital Fortunes, but he also runs several other services, including Biotech Breakout Alert, Takeover Trader, and Micro-cap Advantage.
All told, Basenese has around 20 years of experience as an investment analyst, and his main focus, from what I can tell, has mostly been on tech and biotech.
Aside from sharing his stock picks through Trend Trader Daily, Basenese has contributed to well-known finance sites and been featured on CNBC and Fox Business over the years.
Not to mention, he’s launched different companies in the financial research space and, according to the presentation, helped his followers find some great stocks.
Quantum technology, as Lou Basenese calls it, is something that will almost certainly have a significant impact on the world in the years ahead. And if you’re able to bet on the right companies, there could well be potential from an investment point of view.
That said, one thing I’ve come to notice with these “stock teaser” presentations is that they can be a bit hyperbolic, to say the least. And this one was no exception.
So I think it’s always worth taking some of the claims with a pinch of salt. No matter what company or service is being pitched, there are no guarantees you’ll make money from any investment. In fact, it’s possible you could lose money.
Hopefully, that doesn’t happen, but there are always risks involved with investing, and this is especially true when it comes to emerging technology companies. So I think the age-old saying of only investing what you can afford to lose is a good one.
Anyway, whatever you decide, I hope you found this post helpful.
And as always, I’m keen to hear your take on all of this. So if you’d like to share your thoughts, drop a comment below. Thanks for reading.