From Jason Rivera and Tom Dyson in Tom’s Confidential: The Google Fiber project is turning Kansas City into the “Silicon Valley” of the American Heartland. The project provides Internet and television service through lightning-fast fiber optic lines that go straight to the premises of the customer. With fiber, you could download a two-hour high definition (HD) movie in just 25 seconds. (The fastest broadband connection would require 32 minutes.)
Kansas City is currently Google’s only fully “Fiber City.” Google is in talks with local governments to expand to 34 more Fiber Cities.
But Google isn’t the only giant company with major plans to build a fiber optics network over the next decade. AT&T is reviewing hundreds of cities for its $14-billion high-speed fiber optics network. And Verizon FiOS’ $23-billion project plans to “reach thousands of cities [emphasis added]” by the time it’s finished.
Goldman Sachs estimates that Google alone would need to spend $140 billion for the new infrastructure necessary to provide full national coverage.
Bottom line: We’re witnessing the birth of a new $140-billion revolution in telecommunications. And we’ve found a tiny company that could harness this trend for massive growth over the next decade.
The company we’re recommending provides the components necessary to build this new industry. It needs to grab only a small share of this multibillion-dollar trend to realize explosive growth.
But even if that doesn’t happen, this company is so undervalued that we expect to make 65%—just by the stock climbing to its fair value. And if the company’s recent contract with a “major Web 2.0 [i.e., fiber] player” plays out as we expect… we could see gains up to 255% in the next five years.
Reeves’ note: Tom and Jason’s recommendation is such a small company, they can’t recommend it to our full subscriber file. Our tens of thousands of readers would rocket the stock’s price skyward before everyone had a chance to buy in. Only our elite Infinity subscribers have access to it inside Tom’s Confidential.
You can gain access to this Tom’s Confidential recommendation by becoming an Infinity subscriber. Plus, for the first time in PBRG history, we’re offering Infinity subscribers a chance to invest alongside Mark and Tom in off-Wall Street deals and other private placements Tom can’t share with our full subscriber list. It’s called DealBook… and thanks to a recent change in federal law, we can offer it to our most valuable subscribers.