Update on the Best Penny Stock of 2024

[The Bleeding Edge]( Colin’s Note: Toward the end of last year, I spotlighted a company I declared would be the best penny stock of 2024… It was a bold call that had nothing to do with the business itself and everything to do with the man taking the helm – Brad Jacobs. I wrote at the time about how Jacobs has a knack for building multibillion-dollar companies… including the one that put him on my radar years ago (a penny stock that grew to eventually let me buy my house and pursue a career in finance). And it seems he’s on track to do it again with SilverSun Technologies. So let’s check in… --------------------------------------------------------------- Today I have an update on [a little-known company I told you about]( in December of last year… In fact, I even called it the best penny stock of 2024. Since then, shares have skyrocketed. We've got an update and a lot of ground to cover, so let's get into it. What is going on, investors? Happy Friday. Hopefully, you're doing well out there. Let's start with the backstory of SilverSun Technologies (SSNT) and why it was such an obvious buy last year. It had nothing to do with the company's business outlook or its financials. In fact, at the time, it was a mystery what business the company would actually get into to make money. It was a weird situation and it sounds a little bit crazy. And trust me, people called me crazy… maybe even a little reckless… for recommending such a speculative stock at the time. But I knew exactly what I was doing. That's because Brad Jacobs was taking over… and he's done this numerous times in his career. Each time he’s created a fortune not only for himself… but for investors and shareholders as well. In 1989, he founded United Waste Systems. Eight years later, he sold that business to Waste Management for $2.5 billion. Then he founded United Rentals, a tool rental company, now worth $40 billion. My first encounter with Brad Jacobs was not until 2011 when he bought a little-known truck brokerage company called Express One, later renamed XPO. Using the same strategies he used in the trash and the tool rental business, Brad Jacobs was going to consolidate a sleepy truck brokers industry filled with a lot of mom-and-pop operators into a multi-billion dollar company. Today, XPO is worth about $12 million. I sold all of my shares in 2016 and bought the house that I'm sitting in right at this moment. And while XPO shares have climbed a lot higher since I sold, California real estate hasn't done that bad either. So when I found out Brad Jacobs was taking over SilverSun Technologies to build his next multibillion-dollar business, I knew this was a moment to act. At the time, it was unclear what business Brad Jacobs would get into. However, his style is to pick an industry that is very large but fragmented among many small and mid-size operators willing to sell their business for the right price. With SilverSun Technologies, Brad Jacobs is going to target the building products industry. This will be things like construction supplies, doors and windows, electrical components, and all those types of things. Soon SilverSun Technologies will spin out its existing business. You're going to have no interest in that. That will go to a new entity and the ticker symbol will change to QXO. Brad Jacobs will inject a billion dollars into the new entity. And he's going to use that to fund acquisitions and get the business up and running. Existing shareholders of SilverSun Technologies are going to get a special cash dividend. And here's where things get a little bit interesting. When the deal was first announced, existing shareholders would receive a dividend of roughly 50 cents per share. Actually, a little bit less than that. But the two sides renegotiated the deal and it's actually benefiting the shareholder. The revised deal last month raised the special dividend to approximately $3.27 per share. If you got in when I first recommended shares, it'd mean you paid roughly $10 per share and you're about to earn a $3.27 dividend. That's a pretty good return in just six months. For those of you who took advantage of that, congrats. For everyone else eyeing an investment into SilverSun Technologies, I would wait. The company is going to execute an eight-to-one reverse split. That means for every eight shares you own, you’ll receive one. Now, this sounds a little bit scary, but it’s the exact same thing Brad Jacobs did at XPO. He needs to raise the share price to a level where he can use it as a fundraising tool for acquisitions. The new entity will issue shares, raise cash, and use the stock as a tool to fund these acquisitions. That means any shares you own will be heavily diluted over the next couple of years. And shorter-term analysts and pundits won’t like this. But this is exactly what you are investing in with QXO. The company is going to be making numerous announcements about how it's buying another company while, at the same time, issuing shares of QXO to cover the cost. That's why, more recently, the company hired a CFO with more than 30 years of mergers and acquisition experience. QXO is going to have many ups and downs before it becomes Brad Jacob's next multibillion-dollar business. And there are no guarantees they'll be successful at it. But with speculative investments, you invest in leadership. For his entire career, Brad Jacobs has demonstrated the ability to lead and execute, more importantly across a wide range of industries and economic scenarios. And there's absolutely no reason to believe he won’t do it again. Guys, that was The Bleeding Edge for today. I will see you again next week. 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