Little did I know when I woke up on October 4, 1980 how important that day would become in my life — in more ways than one.
I was just a wide-eyed four-year-old, and as my family and I prepared for game one of the World Series between my beloved Philadelphia Phillies and the Kansas City Royals, a historic event was about to take place.
About 100 miles north of us in New York City, Genentech was becoming the first biotechnology company to trade on a public stock exchange. Shares of the company, which traded under the symbol “GENE,” opened at $35. They quickly shot up to $88 before closing the wild first session at $71.25.
A double on the first day.
It was such a historic and crazy day that The Los Angeles Times referred to it as “a frenzy the likes of which hasn’t been seen on Wall Street since the go-go days of the 1960s.”
If you invested in Genentech on its opening day and held until the company was sold in 2009, you would have earned 157X your money. But those gains are nothing compared to some of the early stage biotech companies of the 1980s.
Amgen went public on June 17, 1983, for $18 per share. The stock has since gone through five stock splits and started paying dividends in 2011. Taking all that into consideration, an initial $1,000 investment into Amgen would be worth about $714,000.
That’s right, 714X your money! That turns a $10,000 investment would have turned into $7.14 million.
Cryptocurrencies — altcoins in particular — are in a very similar situation now to early stage biotechs in the 1980s. They’re new. They’re not well understood. Industry standards are still developing. And gigantic profits have already been made, with plenty more to come.
When a new industry booms — when billions and billions of dollars are up for grabs — you can be sure all kinds of people will rush in and try to get their share.
You can also be sure some of these folks will be smart, hardworking, and great people to invest with. And some aren’t the kind of people you’d ever want to invite over for dinner … or ever do business with.
There will be great investments, and there will be crappy investments.
Although some great businesses like Amazon started in and emerged from the 1990s tech mania, many internet businesses turned out to be losers — remember Pets.com?
The challenge of differentiating between the winners and the losers is magnified in a new industry with massive potential. It’s also magnified if a technology is a little harder to understand, like biotechnology in the 1980s and cryptocurrency now.
I won’t sugarcoat it: There are plenty of dangers awaiting uninformed altcoin investors.
In the stock market, you’ll find many great small companies poised to create huge value for society and hand their early shareholders 10X … even 100X gains. But you’ll also find plenty of companies that you shouldn’t touch with a 10-foot pole.
Altcoins represent one of the greatest investment opportunities of your life, but you need to know which ones to buy. That can be tough in a developing industry that still feels a bit like the Wild West.
The good news is that altcoins can be analyzed with a systematic, numbers-based approach. Just like stocks, altcoins have fundamental attributes we can measure and evaluate to separate the best from the worst.
To help you pinpoint the world’s most valuable altcoins, my research team and I have created what we call the “MAG System” — McCall’s Altcoin Grading System. This proprietary system analyzes 10 critical attributes of every altcoin, scores them on each attribute, and produces a total score. If an altcoin earns a score above our “buy threshold,” we immediately consider it for investment. If an altcoin scores poorly, we recommend you avoid it like the plague.
For example, there is a cryptocurrency called Dentacoin, which was created for the global dental industry. That industry is just not very big compared to others, and growth in the sector is virtually non-existent. That’s why Dentacoin is down more than 95% from its 2018 high — and why it has a low MAG Score.
Our system evaluates altcoins on everything from the data that’s stored on a crypto’s blockchain to trading statistics. From risk to the team behind the currency to the user ratings of an altcoin to the strength of its community.
Altcoins that earn elite MAG Scores are much like public companies poised to earn a big share of a huge potential market because they have excellent products or services, strong revenue growth, clean financial statements, and an excellent management team that owns a lot of company stock — that is, “has skin in the game.”
I believe my proprietary grading system is a breakthrough in the altcoin space. It provides a tremendous edge over other altcoin investors and shows you the absolute best altcoins with the greatest potential upside … while allowing you to avoid the dangers and weak players.
On the date of publication, neither Matt McCall nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.