Better Than Bitcoin:

The 1,500%
Loophole
 Better Than Bitcoin:
The 1,500% Loophole
By Jeff L. Yastine
Editor, Total Wealth Insider

A T this point, you’ve probably heard plenty about bitcoin and other cryptocurrencies.
Back in 2017, cryptocurrencies were in the news as their prices rose ever higher into a classic speculative
bubble. Since then, I’m sure you’ve read even more as they’ve gone from boom to bust.
While cryptocurrencies are in a bear market, we can still profit from their underlying technology — the
blockchain — which makes cryptocurrencies possible.
Blockchain technology was invented in 2008 by a man named Satoshi Nakamoto. In very simple terms, the idea
was to create an internet-driven “public transaction ledger” in which bits of recorded information are encrypted,
stored and available for viewing (by anyone) at all times.
Because everyone can “see” that information, it’s virtually impossible for someone — a hacker, for example — to
alter or steal it.
Cryptocurrencies like bitcoin were the first popular use of Nakamoto’s idea.
But pioneering companies realized blockchain technology could also be used to revolutionize the basic building
blocks of business: like keeping accurate records.
For instance, researchers at NSF International say the global food industry spends an estimated $49 billion a year
tracking shipments of food. And they generate reams of documentation in the process.
With blockchain technology, the entire process would be simpler, cheaper and more efficient.
Financial companies are also rushing to adopt blockchain technology to simplify their operations as well.
For instance, think about the billions of stock shares that trade on an exchange every day.
Each share represents a fractional bit of ownership in a company. As those shares are bought and sold, someone
records each of those tiny transactions. According to U.S. government regulations, a brokerage firm must keep
records containing all purchases and sales of securities for at least six years!
Once again, blockchain technology could simplify those processes, making them both more efficient and
cheaper.
This report shows you a handful of promising companies that are on the cutting edge of blockchain
development, offering the promise of large profits for smart investors.

Stock No. 1: Seagate Technology (Nasdaq: STX)

For the last four decades, Seagate Technology (Nasdaq: STX) was known as a data storage company. The
company developed the some of the first hard drives for PCs back in the 1980s.
Today, it controls about 50% of the market for data storage devices. That’s a prime reason Seagate’s stock
rose more than 1,500% in the past decade. In the wake of the 2008 to 2009 bear market, shares fell to an all-

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time low of $3.11 before beginning an inexorable rise
to more than $60 over five years. Seagate Stages Nice Rebound
Then in 2015, Seagate senior VP Dave Morton
$73
made an intriguing admission: His company was
going to invest in something called “Ripple Labs.” $63

At the time, most of Wall Street shrugged. They $53

didn’t know or care about cryptocurrencies. Little did $43

they realize that Seagate was really making a major
$33
bet on blockchain technology, specifically a new
cryptocurrency called (what else?) Ripple. $23

Since then, Ripple became one of the fastest- $13

2013 2014 2015 2016 2017 2018 2019
growing cryptocurrencies in existence, rising SOURCE: Capital IQ

morethan 25,000% in value through early 2018. It is

the third most popular crypto in the world, behind bitcoin and Ethereum.
As Ripple soared in value, analysts remembered Seagate’s early investment in Ripple Labs.
Then analysts went to work with their spreadsheets. They estimate that Seagate owns 2% to 4% of Ripple
Labs, and Ripple Labs likely owns an estimated 61% of Ripple cryptocurrency now in existence.
Suddenly, Wall Street realized this $15 billion tech company was no longer just a maker of hard drives and
storage cards, but it was also a backdoor play on the rising value of Ripple as well!
Now, I wouldn’t want you to buy Seagate Technologies just for that reason alone.
But if you believe that cryptocurrencies, and the technology behind them, have the capacity to fundamentally
change how business is done around the world, then you can see how buying Seagate now makes sense.
For instance, at last glance Ripple’s value was roughly $0.30 per coin. What happens when it moves to $2,
$4, and then $8?
The asset value of Seagate keeps rising and rising too. But I see two other reasons to own Seagate Technologies.
One, it’s a good, efficiently run company that throws off volumes of excess cash that Seagate pays right back
to its shareholders as a dividend. Recently, Seagate paid a quarterly dividend of $0.65 a share, giving those who
buy the stock right now an annual yield of more than 4% on their money. So you’re getting paid to wait for
Ripple to climb higher.
But there’s yet another reason to own Seagate Technologies: Its use of Ripple could have a transformative
impact on the company’s bottom line.
You see, like every global company these days, Seagate has to track, manage and pay a vast network of
suppliers and “middleman” companies.
For instance, Seagate’s hard drives contain nearly 300 components. The guts of the hard drive might come
from Taiwan. So Seagate needs Taiwan dollars. It contracts with other parts makers in China, so it has to have
yuan too. Then all those pieces might be shipped say, to Malaysia. So Seagate needs Malaysian ringgits as well.
And from there, the finished product will be shipped to distributors and computer manufacturers all over
the world, who will pay for their orders in euros, rubles, pounds, pesos … you get the idea.
Of course, the value of all those currencies fluctuates on a daily basis. So Seagate loses a little bit in “friction”
each time it sells dollars to buy ringgits or vice versa.
Those are the challenges that Seagate’s Ripple investment was designed to overcome.
As senior VP Dave Morton told Coindesk.com in 2015:
Reduction of friction is the immediate need within our industry’s space. As we get more and more global,
this is going to be something that folks are very interested in solving.

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 We process hundreds of thousands of [supplier] invoices a quarter, so when you get into how [Ripple]
improves the supply chain, it’s pretty remarkable.
So here’s the thesis: When Seagate eventually rolls out Ripple as a payment option to its suppliers, the
company could shave, by our estimation, between 5% and 10% of its costs from shuffling papers and sending
bankwires from place to place, as well as avoiding most of losses it takes each year when exchanging currencies
from one denomination to another.
Those “forex” losses can be considerable. According to Seagate’s balance sheet, it lost $4 million in forex
changes in 2017. In 2015, it lost a whopping $30 million.
All told, we believe the use of Ripple could boost Seagate’s gross margin percentage— its percentage of
profit on every sale — from 26.7% now to as high as 40%.
And those profits flow right to Seagate’s bottom-line earnings, boosting its stock price higher.
Long story short, we see the value of Seagate Technologies’ stock doubling in value over the next three years.
It’s already an underpriced technology stock, paying a 4% dividend to its investors. Add in the value of its
investment in Ripple Labs, along with the transformative potential of Ripple, to save billions in unnecessary
costs in coming years.
Action to take: Buy Seagate Technology (Nasdaq: STX) at the market.
Note: I first recommended Seagate Technology to readers in January of 2018. The price may move
away from our initial entry price, but you can still reap unimaginable profits by investing in this
company. You can add it to your portfolio at this time. But be aware that your results may differ from
mine based on your entry price.

Stock No. 2: Broadridge Financial Solutions (NYSE: BR)

For just a moment, I want you to think back to a brief moment in U.S. history, the Gold Rush of 1849,
when thousands upon thousands of miners swept into California.
They all thought they’d get rich.
For most, it didn’t work that way.
You know who did get rich? The shopkeepers and manufacturers who sold miners their supplies of food and
mining equipment.
I think the crypto boom works the same way — it’s all about the underlying blockchain technology, not
speculating on cryptocurrencies themselves.
So, before we go any further — what exactly is “blockchain”?
Sometimes people call it “hyperledger” technology. The metaphor makes sense…
In a nutshell, everyone who needs to record a transaction — perhaps a transfer of money, the ownership of
an asset or other complex files — writes it down in the online ledger.
Once it’s written down, the information is permanently recorded and encrypted. Since the ledger is shared
online, everyone else can see what’s written in that ledger too.
And since everyone can monitor the ledger moment by moment, it’s impossible to retroactively change an
earlier entry (presuming you could get past the encryption). Any changes would be immediately noted by the
ledger-watching community.
Without all the techno-speak, that’s what blockchain is all about — instantly, cheaply, easily recording any
kind of transaction.
Broadridge Financial Solutions (NYSE: BR) was one of the first companies to figure out how to put that
technology to work. And that’s why I highly recommend investing in this company today.

3
 To put it briefly, I see this stock rising at least 40% through the end of 2020 as it puts blockchain
technology to work, alongside its already successful non-blockchain businesses.
See, Broadridge builds technology platforms for the securities and banking industries:
• Mutual funds, exchange-traded fund companies and asset management firms all use its software to keep
track of their portfolios.
• Banks use Broadridge’s “cash management” systems to monitor their deposit and loan accounts down to
the penny.
• Publicly held companies use Broadridge’s technology to keep track of the millions of proxy votes cast by
stockholders ahead of annual corporate meetings.
You can see the benefits that blockchain technology will bring to Broadridge.
So it’s no surprise the company made its first crypto investment in 2016, with a $95 million purchase of
a blockchain-tech firm called Inveshare, long before cryptocurrencies became cool and trendy to Wall Street.
Broadridge believes the use of blockchain technology could save the financial markets up to $30 billion a
year by automating financial record keeping. The company believes blockchain will be “transformative” and
see widespread adoption by 2020.
In anticipation of that date, Broadridge has started to employ blockchain as pilot projects in the following
four key businesses:

1. Proxy voting: In April 2017, Broadridge announced the first real-time test of its blockchain-enabled proxy
voting system. The Ethereum-based crypto ledger was used as a backup vote-counting system for the annual
shareholder meeting at Santander Investment, a division of Mexico’s Banco Santander.
Broadridge executed its first proxy vote in January 2019 as a proof of concept with the Tokyo Stock
Exchange.
2. Regulatory compliance: In 2017, the company made another acquisition — a firm called Message
Automation Limited.
Broadridge hopes to use blockchain technology, and Message Automation’s software system, to help banks
and other financial institutions keep track of the bewildering array of rules and regulations as they conduct
business in Europe and across international borders.
3. Tracking bank “repos”: In yet another pilot project in 2017, Broadridge used blockchain technology to
keep track of government bond repurchase agreements. Often called “repos” in the world of government
bond dealers, repurchase agreements are a type of very short-term borrowing — usually conducted at the
close of business each night and settled up the following morning.
4. Bond settlements: Unlike the world of stocks, the bond market is still in the early stages of
automation and digitization.
Even now, when, say, a bank buys millions of dollars’ worth of bonds, the “settlement” — matching up the
buyer and the sellers’ prices, and verifying the transfer of digital cash for the digital bond certificates — is an
expensive, time-consuming, sometimes error-prone process.

But even with all that in mind, the best thing of all about Broadridge is this: With or without blockchain
technology, it’s already a highly profitable first-class financial services company.
Here’s the kind of compounded annual growth Broadridge saw over the last five years…
• Total revenue: 10.1%.
• Cash from operations: 10.1%.
• Net income: 10.9%.
• Dividends per share: 12.4%.

4
 It’s no wonder then that Broadridge’s profits have
nearly tripled in the last decade. Broadridge’s Profits Keep Climbing
Thing is, Wall Street thinks Broadridge is just $5.00
getting started on its track to yet-higher profits. The
company earned $4.66 a share in 2019’s fiscal year, $4.00

and analysts predict earnings will rise to $5.16 a

Earnings Per Share

$3.00
share in 2020.
That’s a big gain over the $3.13 a share that $2.00

Broadridge earned in 2017, and the $4.19 a share it

$1.00
earned in 2018.
In a nutshell, that’s why I think Broadridge’s stock 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
$0.00
can rise another 40% through the end of 2021. Estimate
SOURCE: Capital IQ

We can approximately forecast Broadridge’s stock

price then by measuring its price today against its
current annual earnings per share. We do this by
The Broadridge Rally Continues
using a financial measurement of value called a
price-to-earnings (P/E) ratio. $140

The measurement is simple to perform. Take a $120

company’s stock price and divide by its last four $100

quarters’ worth of earnings on a per share basis. $80
For instance, in late 2019 (when this report was $60
updated), Broadridge’s stock was trading hands for
$40
around $123 a share. And we know the company
$20
earned $4.66 a share in profits during its last four
quarters of operation. $0
‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19
SOURCE: Capital IQ
So if we divide $123 by $4.66 a share, we get a
P/E ratio of 26.
Now that we know the P/E ratio (the measurement of value that Wall Street will pay to own the stock)
we can go to the next step … forecasting Broadridge’s stock price in the year 2020.
We know that analysts believe Broadridge will be earning at least $5.16 a share by 2020. So the next step
is multiplying $5.16 by the stock’s current P/E ratio of 26.
And what figure do we get in the equation?
We get a forecast stock price of $134 in late 2020 — roughly a 12% increase over the current share price
for Broadridge, around $120 in November 2019.
Lastly, as a small “kicker” for owning the stock, Broadridge pays a small annual dividend. At the current
stock price, it gives you a dividend yield of around 1.8%.
So all together — with the company’s in-demand services, great financial picture and history of growth
— this is a stock you want to own today.
Action to take: Buy Broadridge Financial Solutions (NYSE: BR) at the market.
Note: I first recommended Broadridge to readers in April 2018. The price may move away from our
initial entry price, but you can still reap unimaginable profits by investing in this company. You can
add it to your portfolio at this time. But be aware that your results may differ from mine based on
your entry price.

5
 Stock No. 3: ING Group (NYSE: ING)
Say the name “ING Group” here in the U.S., and quite a few of us will scratch our heads.
But say the name in Europe, and there’s instant recognition. With assets of a little over $1 trillion, ING is the
fifth largest retail bank in the 28 countries that make up the European Union. All told, this institution controls
42% of all EU consumer-banking deposits.
But ING is about to move beyond consumer banking.
ING Group is also hyperfocused on the use of blockchain technology to drive big profits in its banking, trading
and credit operations.
Thanks to ING’s growing use of blockchain and the efficient management of its banking operations, I expect
shares to double in the next 24 months.

Blockchain Pioneer
ING’s transformation from an ordinary bank to blockchain pioneer started in 2015. That’s when the company
paired up with a handful of other global financial institutions to introduce blockchain technology to the banking
sector. Their goal was to create a “global fabric of finance.”
In 2016, the bank took its interest in blockchain to another level. It unveiled more than two dozen “proofs
of concept” — patentable ideas where the technology could be used to enhance lending, payments, compliance,
cybersecurity and bank record-keeping.
More investments followed in the years after. And in late 2018, it paid off. That’s when ING and its partner
HSBC India announced they “successfully executed a blockchain-enabled, live trade finance transaction.”
In other words, the technology had gone from inventions and pilot projects to a live trading platform involving
real companies and real money.
In this case, it was a letter of credit (a type of short-term payment guarantee) between a U.S.-based energy
company and a large India-based manufacturer.
Previously, such firms would exchange a letter of credit through an old-fashioned process (usually conducted via
fax machine and human courier) accompanied by massive piles of documentation to verify who owed whom and
how much.
As the manufacturer’s chief financial officer noted, ING’s blockchain technology “offers significant potential to
reduce timelines from 7-10 days [to complete the paperwork for the letter of credit] to less than a day.”
The point is, blockchain technology is coming of age. And ING Group is leading the charge.
At the end of 2018, ING took the last step to integrate the blockchain into its operations with the launch of its
“Komgo” blockchain-based trading platform.
Komgo allows any trade-related company, in agriculture, mining or energy, to trade those commodities and
eliminate costly paper-based record-keeping by tracking all those same deals as blockchain transactions.

Profit From the Blockchain

The use of blockchain translates into more profits for ING Group and its potential shareholders for a few reasons.
Ultimately, ING sees itself as the owner of a very valuable trading platform that the world’s largest companies in
oil, minerals and farming could use to conduct all of their business.
But it’s still the earliest innings of the blockchain revolution. Despite all the successful pilot projects, the process
will take a few years as commodity producers and traders learn to let go of paper-based record-keeping.
In the meantime, ING sees its focus on the blockchain as the key to finding and keeping large corporations as
primary customers. Basically, the bank offers traditional services like credit lines, cash management, and advisory
services. But it also uses its insights on blockchain technology to offer solutions to other longstanding problems,
such as secure, efficient (and less costly) record-keeping and documentation.

6
 “If we have a relationship that is emotionally close to us,” said chairman and CEO Ralph Hamers to analysts,
“that means we know the customer. We can be much more relevant for that relationship.”
To that end, ING continues to succeed in its goals.
Despite a slow-growing EU economy, ING’s revenue rose by 22.8% in the past five years. It’s on track to hit a
record $20.4 billion in 2019. Likewise, the bank’s earnings per share jumped nearly 60% between 2014 and 2018.
As you can tell from the chart, ING Group has
a nice earnings profile — but it’s not spectacular. ING Group’s Steady Earnings Growth
However, I still see this stock doubling within the next
$2.00
two years for three reasons…
1. ING earns nice, steady profits.
$1.50
2. Since it’s based in Europe, it’s off the radar
screens (and therefore underpriced) by the $1.00

majority of U.S. investors.
3. I’m convinced that investors will soon recognize $0.50
that ING stands ready to reap the rewards of its
blockchain investments, and bid up the stock as
$0.00
a result. 2014 2015 2016 2017 2018 2019
(est.)
In short, ING Bank is undervalued — and a great SOURCE: Capital IQ

bargain.

Make 100% in 2 Years

We can use a simple measurement called a price-to-earnings (P/E) ratio to get an idea of what the bank’s value
really is. Don’t let the mathematics put you off. All a P/E ratio tells us is how much investors are willing to pay to
own a business, relative to its profits.
For instance, we know ING’s current stock price (as of late 2019) is $11.70 a share.
We also know that Wall Street analysts expect the
bank to report a profit of $1.54 a share for 2019. ING’s Stock Price Is Set to Double
If we divide the stock price by those projected
$19
profits, it gives us the price/earnings ratio of 7.6.
$17
By itself, the number means nothing. But by looking
at how the bank’s P/E ratio fluctuates over time, we $15

can see when the stock is “cheap” versus “expensive,” in $13

tempo with the rise and fall of investors’ pessimism and $11
optimism. $9
And when I look at ING’s P/E over the past few $7
years, I see that it’s at its cheapest level since 2012. $3
We can draw some parallels between then and now $1
2009 2011 2013 2015 2017 2018 2019
to put things in perspective. SOURCE: Capital IQ

Investors hate uncertainty. Back in 2012, they were

worried about a bunch of things. Europe’s economy was lackluster. The value of the euro declined as well. Most
importantly, investors were concerned about Greece and the possibility the country might leave the EU.
It didn’t really matter whether those fears came to pass. It was the uncertainty that kept investors on the sidelines.
But once that uncertainty cleared up, they switched from pessimism to optimism.
That’s why European stock indexes all rose by 40% to 50% between 2012 and 2016, as the EU’s economy
improved and Greece remained a member state. (ING’s stock rose even higher in the same time frame.)
I expect the same thing to happen now.
As I write this report, investors are worried about whether Britain might leave the European Union. They

7
worry the White House is upsetting the status quo on trade. They worry the global economy might plunge into a
recession.
Thing is, ING Group’s stock price already reflects these fears.
But when those “uncertainties” clear up, one by one, it’s only a matter of time before investors find their way to a
bargain in the stock market.
And what do they find with this bargain?
• They’re buying the largest retail bank in Europe…
• A bank with steady profit growth…
• A bank that pays a dividend of over 6%...
• And they’re buying the global leader in blockchain technology to make finance and trade more efficient and
secure.
That’s why I expect the bank’s share price to double over the next two years.
I can show you why with just a little bit of math.
While the bank’s profits are projected to be flat in 2020, those estimates reflect the current slowdown in the
global economy because of trade tensions between the US and China, and “Brexit” uncertainties on whether
England stays in the EU or leaves. As both of those question marks are resolved, global trade flows will revive.
When they do, ING Bank will be a prime beneficiary, and analysts will need to raise their earnings estimates for the
company.
Let’s also remember that as investors grow more optimistic about the bank’s profits, they’re willing to assign a
higher P/E value to the stock as well. For perspective, we can look back over the past decade and note that ING’s
P/E has been as high as 14 and as low as the ultra-pessimistic P/E of 6.68.
Within the next two years, I expect ING’s P/E to move back up to at least 12, if not higher. This reflects a
reasonable amount of optimism about the bank and the economic prospects for the European Union.
If we multiply that P/E value of 12 by the bank’s projected earnings of $1.55 in 2020, we get a stock price of
$18.60 — a 59% rise from the stock’s $11.70 price tag in late 2019.
If that’s not a reason to be optimistic, I don’t know what is. I think investors will feel the same way as they watch
ING grow.
Action to take: Buy ING Group (NYSE: ING) at the market.
Note: I first recommended ING Group in January 2019. The price may move away from our initial entry price,
but you can still reap unimaginable profits by investing in this company. You can add it to your portfolio at this
time. But be aware that your results may differ from mine based on your entry price.
The Best of Good Buys,

Jeff L. Yastine
Editor, Total Wealth Insider

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