Today I’m looking into Dave Forest’s “Super Spike Summit” presentation, where he talked about a so-called “super spike” in the market and a $10 mining stock he’s bullish on.
According to the presentation, the company Dave Forest is teasing is led by a billionaire who mentored Steve Jobs, and he believes it “could shoot up 20X.”
Long story short, I looked into the clues Dave Forest shared about his “$10 Super Spike stock,” and in this post, I’ll show you what company he’s teasing. I’ll also give you an overview of the $1,750 per year Super Spike Advisory service he’s pitching.
But first, let’s start by discussing his overall “super spike” prediction…
What Is a Super Spike? (Commodity Supercycle)
According to the Casey Research website, the so-called “Super Spike” Dave Forest is referring to is essentially a bull market in commodities.
“And yet — at the very same time stocks took a hit — a huge bull market in commodities has risen from the ashes.
Dave Forest calls this incredible opportunity a Super Spike.”
As Dave Forest pointed out in the presentation, tech stocks have taken a beating this year while commodities, in general, have rallied. And the gist of his prediction, more or less, is that the party is only just getting started.
Forest said he believes this “super spike” could make early movers “untold wealth” and that it promises to “dwarf the recent run in tech stocks.”
Another thing Dave Forest mentioned in the presentation is that these Super Spikes have happened repeatedly for over 100 years, suggesting that they’re very predictable.
And he shared the following chart to illustrate his point, which shows the ups and downs of the so-called Super Spike cycle he’s talking about since 1900:
According to Dave Forest, this chart “shows the last four Super Spikes at a glance,” which he claims is a “strikingly predictable wealth creation cycle.”
What is that chart representing?
Dave Forest didn’t elaborate on exactly what that chart represents. However, based on what he did say, we know it relates to the previous four “spikes” in commodity prices, which have happened over the past 100 or so years.
And long story short… that chart, and what Dave Forest said, seems to line up with an infographic on visualcapitalist.com of the commodity supercycle.
According to the above site, there have been four commodity supercycles since the beginning of the 20th century. And if you look at the peaks and troughs in the chart Dave Forest showed and compare that to the infographic I just linked to, it’s clear that when Dave Forest says “Super Spike,” he’s (actually) referring to a commodity supercycle.
He’s essentially just put his own “marketing spin” on it, which is pretty common in the newsletter space. These guys seem to love making up names for stuff.
What is a commodity supercycle?
This article on the Motley Fool website defines a commodity supercycle as a sustained period of increasing commodity demand that typically lasts more than a decade.
And with increasing demand comes higher prices unless and until the supply of the commodity “catches up” with said demand.
The opposite can be true, too. As in, it’s not just increasing demand that can trigger high commodity prices but also commodity supply shortages. So even if demand stays the same, for example, commodities could still rally if there’s a supply crunch.
And this, at least to me, gets to the root of Dave Forest’s prediction.
During the presentation, he talked about some of the main factors that have led to high commodity prices, and his thesis mostly related to shortages.
For example, he mentioned the impact that droughts, supply chain disruptions, and geopolitical factors are having on things like agricultural commodities (wheat and corn) and energy-related commodities (oil and natural gas), among others.
What’s more, with the world transitioning away from fossil fuels, there hasn’t exactly been a flood of new capital pouring into oil and gas projects. And as fortune.com points out, there’s a supply deficit of metals needed to make EVs, like lithium and nickel.
So in some ways, it seems like the “perfect storm” for commodities.
That doesn’t mean commodity investors will get rich, though, or that you’re guaranteed to make money following Dave Forest’s recommendation. Not at all.
Nothing is ever certain or guaranteed when it comes to investing, which is why it’s always a good idea to look at the other side of the coin, so to speak.
And one article on Bloomberg points out several reasons we may not see a supercycle in commodities, so I highly recommend checking that article out as it’s super informative and looks at both sides of the commodity “supercycle” thesis.
Anyway, long story short, the presentation suggests that this “super spike” (AKA commodity supercycle) is a “predictable and unstoppable cycle.”
“And we have a pretty good idea of how today’s Super Spike will play out because they’ve popped up, without fail, throughout the past century.
It’s a predictable and unstoppable cycle.”
And according to the Casey Research website, Dave Forest believes that his “Super Spike play” has “20X potential over the coming months.”
What company is he teasing?
Let’s take a look!
Dave Forest’s “$10 Super Spike” Company Revealed
The presentation provided numerous clues about Dave Forest’s pick, and one of the main ones was that it’s a mining company led by the billionaire who mentored Steve Jobs.
“The well-known billionaire at the helm of Dave’s top Super Spike play has known Dave for years.
He funded the gold mine that Dave helped take public and early investors could’ve mare 2,270%.
And this billionaire was the great Steve Jobs’ early mentor. Jobs even named Apple after this billionaire’s apple farm. Apple eventually became the first $3 trillion company in world history.
In the same way that Steve Jobs made Apple, this billionaire makes this super spike company.
One of this company’s mines is rated as the world’s largest high-grade copper discovery.”
Another clue shared in the presentation was that Dave Forest’s pick is a “$10 company” and that it has “84 billion pounds of copper in its two main mines.”
“In short, copper looks like a great investment right now.
And this $10 company has a total of 84 billion pounds of copper in its two main mines.”
And lastly, the presentation discussed other commodities the company mines:
“Another one of their mines has at least $73 billion in zinc, silver, and cobalt. Those are also critical technology metals.”
Based on those clues, Dave Forest’s Super Spike pick appears to be Ivanhoe Mines, a Canadian mining company that mines copper, zinc, and other commodities.
How is this company a match?
There are several key reasons…
First, the company’s founder, Robert Friedland, is a billionaire who mentored Steve Jobs while he was in college. And according to oregonlive.com, Friedland controlled a 220-acre farm near McMinnville at the time, which included an apple orchard that Steve Jobs worked in. And Steve Wozniak said that this is how Jobs came up with the name Apple.
Second, according to the company website, the Kamoa-Kakula Copper Mine, a joint venture Ivanhoe Mines is part of, has 83.7 billion pounds of “contained copper.”
As a side note, there are five separate mines associated with the Kamoa-Kakula Project, but the name of the project, and a map on the above page, suggest that the mines are located in two main areas in Africa – Kamoa and Kakula (which matches what Forest said).
And third, the company is trading on the Toronto Stock Exchange (TSX) under the ticker IVN for around $10 (Canadian dollars) as of writing. It’s also trading on the Over the Counter (OTC) market under the ticker IVPAF in US dollars.
The only thing that doesn’t seem to fit is what Dave Forest said about cobalt, as this does not appear to be a commodity the company is focused on.
Nevertheless, given how closely this company matches Dave Forest’s clues, I can’t see how it could be anything else. So, bottom line, Ivanhoe Mines looks like Forest’s pick.
How can you find out for sure?
The best way to access the complete details of Dave Forest’s “Super Spike” recommendation would be to see his report, titled “The Super Spike Play Set to Deliver 20X Gains.”
This report shows you exactly what Dave Forest is pitching and gives you his research on the company, as well as his “buy-up-to guidance.” The only catch is that the only way to access this report is to join his $1,750 Super Spike Advisory service.
Recommended: Go here to see my #1 rated stock advisory of 2022
What Is The Super Spike Advisory?
The Super Spike Advisory is a research service that, according to the Casey Research website, is “designed to capture Super Spikes in hard assets.”
The service costs $1,750 per year to join, and each month, subscribers get Dave Forest’s latest Super Spike recommendation, which the site says is based on a “roadmap for the current Super Spike window” he developed using historical research.
According to Casey Research, this “roadmap” tells Forest which commodities are likely to move next, how long the “spike” could last, and where to invest for maximum profits.
Aside from the monthly commodity-related recommendation, subscribers get the “The Super Spike Manifesto,” which shows you how Forest finds the ” Super Spike plays” he recommends, along with updates on his picks and research reports.
I’m not a member of this service, so I can’t tell you how worthwhile it is (or isn’t), and it appears to be a new service, so I’m not sure what its track record is like.
Who Is Dave Forest?
According to his profile on the Casey Research website, Dave Forest is a professional geologist, venture capitalist, entrepreneur, and financier.
All told, the site says he has over 25 years of experience and has been to over 35 countries related to his work in founding and taking natural resource companies public.
In 2004, Forest joined Casey Research, a Florida-based financial publishing company founded by Doug Casey. Forest’s flagship service is called Strategic Investor, but he also oversees a free newsletter called Casey Daily Dispatch and a handful of other services, including Strategic Trader, International Speculator, and the Super Spike Advisory.
As for his stock picks… I’ve looked into numerous Dave Forest presentations lately, and the last two I covered involved 5G technology and warrant investing.
His “5G Masterkey” recommendation involves a “tiny company” that he believes can help fix a “fatal flaw” in 5G technology, which I was able to uncover in the post I just shared.
And Dave Forest discussed his warrant investment pick in a presentation dubbed “Bezos’ 7th Deal,” which is all about an electric bus company he’s tracking. I also managed to uncover another company he teased in that post, his “#1 EV Stock of the Decade.”
So if you want to see what other stocks he has teased, check those out.
When you boil it all down, Dave Forest’s Super Spike prediction is all about commodity supercycles, where commodities can see a multi-year (or decade) bull or bear market. And he suggests that we’re now entering a massive bull market for commodities.
There’s no guarantee we’re in a commodity supercycle, much less that Dave Forest’s pick will see “20X” gains. So I do not recommend joining the Super Spike Advisory if your goal is to get rich quickly because that could easily lead to disappointment.
However, Dave Forest is a geologist with a lot of experience in this sector, and he made a compelling case in the presentation as to why we could be entering into a significant bull market for commodities. So it’s possible he’s onto something.
Either way, at least now you have a better idea of what he’s predicting and what his pick might be, so I hope you found this helpful. Thanks for reading.