Black Port Capital is a service which according to Dan and Mike (the founders of the company) is able to provide simple investment tips throughout the month. By following their trading advice you can supposedly expect huge amounts of profit.
What does the product offer?
There is a lot of ground to cover with Black Port Capital and as such, I don’t wish to dwell too much on individual detail. None the less, there is a lot of interesting information surrounding the service if you start to examine things properly. As such, I also want to preface this article by saying that there are likely to be long winded and somewhat rambling points as well. By the time I get to the end however, I believe that you will understand the logic of my approach.
With that out of the way, what exactly are you getting into with Black Port Capital? Dan and Mike ask in their marketing “Ever Wanted To Earn An Income Trading Without Worrying About Picking The Right Stocks?”. They also ask “Stuck Trying To Earn Money Trading? Does The Stock Market Seem Too Random To Predict?”. Not surprisingly, they claim that Black Port Capital is the solution to all of these questions ad in doing so, provide a very broad insight into what we can supposedly expect.
I don’t however like broad so I want to talk about what you actually can expect from Black Port Capital. Logistically, it is incredibly straight forward. Over the course of the month, Dan and Mike say that subscribers can expect to receive as many as 15 alerts although this can be as few as 8. These are sent out via email and SMS with each alert comprised of a buy alert and a sell alert. The idea is that by following along with these alerts, you are almost guaranteed a profit. It is worth making note of the fact that Dan and Mike say that not trades from Black Port Capital will typically stay open or no longer than 2 weeks.
One thing that is important to keep in mind is the fact that in order to take advantage of Black Port Capital, you will need to have a stock broker available. There are a number of websites available which offer this service relatively inexpensively though.
It is interesting to note that there is no advice on how much you should be trading however the information that I have seen suggests that this figure should be as much as possible. For example, in the evidence which is supplied for Black Port Capital Dan and Mike are apparently investing hundreds of thousands of dollars into their trades. They also claim that they started out in 2013 with $25,000.
One of the things that I find to be particularly incredible is the claimed win rate of the trades Black Port Capital recommends. According to Dan and Mike, an outstanding 82% of their trades have made money. This is one hell of a figure and what makes it even more impressive is by how much the majority of trades appear to have won. This is something that I will cover in detail a little below.
How does the product work?
According to Dan and Mike, each alert that they send out is based on a minimum of 10 hours of research spread amongst 7 different analysts (including Dan and Mike). Unfortunately, there is no information on what this research really entails. What is rather interesting to note however is that in a PDF that is offered in exchange for your email, Black Port Capital talks at great length about stocks that other investors (and frankly much better known ones) are recommending and investing in.
Whist I wouldn’t like to speculate that this is the be all and end all with Black Port Capital, it does however seem that this is potentially a starting point. What I can say from having had some background with playing the stock market (entirely on paper and mostly out of curiosity. For the curious amongst you, I would have done alright or myself), I can believe that this figure is about correct, especially if you are looking at smaller stocks which Black Port Capital appears to quite often.
What is the initial investment?
If you have read this far, you can probably anticipate the fact that Black Port Capital is not going to be cheap. In fact, it is an eye watering $249 per month or alternatively, you can sign up for the whole year for a cost of $588 (it is clear to me which is being pushed). Furthermore, if hand over your email address for the free report, you can also get an additional 10% off your purchase cost.
What is particularly important to note is that there is no money back guarantee in place for Black Port Capital. This means that once you have parted with your very significant outlay, that is it.
What is the rate of return?
The returns on Black Port Capital are seemingly incredible. Starting with $25,000, Dan and Mike say that they have turned this into a $1,430,800 profit over 5 years. This is a phenomenal result. There individual trades have supposedly made huge amounts of income however these are based on massive investments. A more realistic figure is that on average, every trade that Black Port Capital have recommended has supposedly generated returns of approximately 24.4%. This is a hell of a figure if it is to be believed with 15% generally being considered a very good return when it comes to stock trading.
There is a lot to process with Black Port Capital and this is inevitably where I am going to wander off the beaten track a little bit. On the surface of things, I don’t think that anybody can deny that Black Port Capital is an impressive looking service. Whether or not it is really able to live up to its billing is a very different question however and this is what I want to really examine here.
First things first, I want to talk about the results. These are, at first glance incredible. There are some who would possibly call them too good to be true and in the spirit of scepticism, I should point out that these aren’t proofed anywhere except for within the Black Port Capital website. How much of a problem this is for you is ultimately dependent on how much of a risk taker you are. Some people are happy to take this kind of thing at face value however at the costs involved, I believe that additional digging is more than warranted.
This leads me to the company as a whole. Black Port Capital is supposedly operated by Black Port Capital LLC. A company which operates from the following address:
Black Port Capital
3501 Jack Northrop Ave
Suite #WC103, Hawthorne
This address is actually for a branch of Shipito, a company that allow you to have an address within the US and ship from there. More concerningly, it means that there is no real location for Black Port Capital. Combine this with the fact that the company are not a registered LLC within the state of California and alarm bells start to ring for me. These are two rather substantial discrepancies for a company that has seemingly come out of nowhere, and yet has somehow supposedly been operational for around 5 years.
There are other perceived issues with Black Port Capital, however these come directly from Dan and Mike. Perhaps most damning of all is the following quote from their disclaimer. “DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE”. Of course I am being a little bit obtuse here, although none the less it is important to note that it is there in black and white.
The part that I actually want to address is where Dan and Mike say tat Black Port Capital is not a registered securities broker-dealer or an investment adviser either. They then go on to say “We are neither licensed nor qualified to provide investment advice”. This is a slightly more concerning thing for me. If Black Port Capital were above board, I don’t see why it wouldn’t be registered with the relevant regulatory body. I have looked at similar products based within the UK before now and I have said the same thing.
“Disclaimer. We are a publisher. BlackPortCapital.com is not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. BlackPortCapital.com is intended to provide opinions and analysis of stocks and markets, but is not intended to provide personalized investment advice. DO NOT EMAIL BLACKPORTCAPITAL.COM SEEKING PERSONALIZED INVESTMENT ADVICE, WHICH CANNOT BE PROVIDED. BlackPortCapital.com’s stock portfolio and the BlackPortCapital.com email newsletter(s) represent only our editor’s opinions and should not be relied upon for purposes of transacting securities or other investments”
As far as I am concerned, this is all pretty damning evidence and if I were looking to invest, it would certainly be enough for me to not even consider Black Port Capital. There are however other things to look at. The main one is a question of value for money. Consider that Dan and Mike are able to sell Black Port Capital for a full year for $588, yet want $250 for a single month. This simply doesn’t represent any value at all in my book for a number of reasons which I will explore below.
First things first. Whenever a service offers a huge subscription length for a small increase in cost, I wonder why. In my experience, this is an oft employed marketing tactic which is used to get people to hand over more money thinking that they are getting a bargain. Of course Black Port Capital could deliver on the results that have been shown historically and it would be just that. By the same token, tying people in for a longer subscription could be seen as a stalling tactic.
Secondly, giving Black Port Capital the benefit of the doubt, it seems massively unreasonable to me to charge just under half the cost of a year for a month. This in and of itself would be enough to make me question whether or not there is value to be had in the service. Especially when you consider that in order to get close to the results that Dan and Mike claim for Black Port Capital, you have to invest tens of thousands of dollars as a minimum.
Even if I entirely put aside my misgivings and say that I am 100% behind Black Port Capital (which I’m not), it is difficult to ignore the amounts staked. The lowest amount that was invested in a single company was $21,200. This figure is important for two reasons. The first is that most people simply aren’t going to have this kind of money to invest. The second is that if I did have this much to invest, I can assure you that it wouldn’t be through a barely existent company online.
If I am entirely honest, there are a number of additional reasons that I am sceptical about Black Port Capital. These range from a very straight forward lack of tangible evidence to the fact that a lot of their featured testimonials and reviews come from questionable sources. This can range from Facebook profiles which simply feature posts plugging services to reviews on trusted reviews in which the reviewers all appear to have registered and posted just one review around the same time the website for Black Port Capital went live.
As further damning evidence, as well as the website only relatively recently having launched in September last year (again, despite a nearly 5 year old service), it has all been carried out anonymously. There could be plenty of legitimate reasons for this but in the face of everything that I have seen to date, I can only treat this with suspicion.
It is entirely plausible that Black Port Capital is genuinely profitable and is capable of the kind of bank growth that it has supposedly attained to date. It is also possible that Dan and Mike make bad calls just 18% of the time. I wouldn’t dream of saying that these aren’t possibilities, but I am definitely sceptical. Honestly, the first thing that I thought looking at Black Port Capital is “if these guys are genuine, why aren’t they managing a hedge fund?”. Now there are possibly some very good reasons for this. The stock that they have supposedly invested in to date includes a lot of smaller companies and this wouldn’t suit a massive operation. It is also possible that they simply want to work for themselves.
Unfortunately, I cannot convince myself to believe this. I am a straight forward kind of guy and the fact of the matter is this. Reflecting on everything that I have dug up, and the evidence that I have seen for Black Port Capital, it all points in one direction and it doesn’t necessarily bode well. The fact is this, there is a lot more that is unexplained about Black Port Capital than is. Combine this with a high price point and the apparently rather sudden emergence of the company and it is clear to me that Black Port Capital definitely isn’t something that I would invest in.