Stock-picking “guru” Shah Gilani has teased numerous companies over the years as a way to promote his newsletter services, and today I stumbled across his latest pitch.
In short, it’s all about inflation. And during the pitch, he teased a bunch of different “inflation crusher” stocks, which he says could help investors “beat” inflation.
The only way to find out for sure what these companies are would be to join one of his newsletters, but I decided to find out what they were based on the clues he dropped in the teaser and share my research with you in this post.
So with that said, let’s see what he’s teasing!
Shah Gilani’s “Inflation Crusher” Stock Picks
Shah Gilan’s inflation presentation is titled “The Beat Inflation Blueprint,” and it’s part of a pitch for a $39/year newsletter he runs called Total Wealth Investment Research.
This particular teaser was released in October 2022, but it has been doing the rounds lately, so it still seems to be relevant as of writing (May 16, 2023).
What’s he predicting?
In short, Shah Gilani has predicted that inflation could get much worse, which he basically claims is due to “money printing” and excessive government spending. And according to Gilani, the best way to “beat” inflation is through the stock market.
“Now, we have a gigantic problem on our hands: an INFLATION TSUNAMI with no end in sight.
“So buckle up…
“Because I’m going to show you how to give these dope addicts the finger… and protect yourself from all this mayhem.”
“So, what’s an investor to do?
“It’s simple. You have to grow your money faster than inflation takes it away.
“The best way to do that is still buying stocks.”Source: https://web.archive.org/web/20230515235415/https://pro.moneymappressinfo.com/p/MMRINFL/EMMRYBBH/Full
Long story short, Gilani teased seven companies all up, which are all in the energy sector except for one (a REIT), and I think I’ve managed to uncover FOUR of them.
Stock #1 (Nuclear Energy)
The first company Gilani teased is a nuclear power company.
And according to the presentation, the reason he’s bullish on nuclear energy is that “the world is going to need a lot more electricity” and nuclear is the “only viable answer.”
“Global electricity demand is now set to double over the next 30 years as people in developing countries begin to live the same lifestyle we do.
“Add in millions of electric cars and the math gets even crazier.
“The problem is fossil fuels alone won’t cut it. Neither will solar, hydrogen, geothermal, or millions and millions of windmills.
“That leaves only one viable answer: nuclear power.”
As for the company he’s teasing, here are the main clues he shared:
“So what’s the best way to play it? It’s right here in America.
“With a little-known small-cap company 22 TIMES SMALLER than everyone’s go-to uranium firm, Cameco Corp.
“One whose roots go all the way back to the Manhattan Project and who’s been powering America’s nuclear defense since the Cold War.
“Now they’re being called on to help produce enough nuclear fuel to help power the world.”
“In addition to producing fuel for large-scale reactors around the world, they’re also leading the charge in “nuclear batteries.” Or the new future of the entire industry.
“So what’s a ‘nuclear battery?’ It’s a nuclear power plant that can power 8,000 homes or a cluster of skyscrapers.
“Yet it’s so small it can be mass-produced, put on a truck, and delivered anywhere in the world.”
“And in 2019, the Department of Energy contracted this small firm to produce what’s called H.A.L.E.U fuel.
“It stands for High-Assay Low-Enriched Uranium. And it’s the special grade of fuel needed to power these reactors.”
Based on those hints, it looks like Gilani’s nuclear energy pick might be Centrus Energy (LEU), a U.S. company that supplies nuclear fuel.
Why do I say that?
Because the main clue Gilani shared above relates to how the company produces H.A.L.E.U fuel, and according to my research, the only company licensed to produce this type of fuel in the U.S. is Centrus Energy Corp.
This company is also a small-cap stock and (roughly) lines up with the “22 times smaller” than Cameco Corp hint, as its market cap is currently around $470 million.
I can’t be certain that Shah Gilani is teasing Centrus Energy here, but that’s how it looks based on the clues he shared.
And if I’m right, this would be the second time I’ve come across someone teasing this company (the first was a year ago when I looked into a teaser by Jason Williams).
Stock #2 (Oil)
Shah Gilani’s second prediction centers around oil, which he suggests could get a lot more expensive in the future:
“… if you think oil prices are high now, you haven’t seen anything thing yet.
“The fact is the last two times inflation got this bad, oil prices went A LOT higher than they are right now.”
As for the company he’s pitching, here are the clues he shared:
“So what’s the best way to play it?
“With a small Texas company that’s been pumping oil now for over 100 years.
“They’re sitting on around 201 MILLION barrels of oil, and their breakeven costs are less than 40 dollars a barrel.
“So at 150 dollars a barrel – which seems pretty reasonable – they’re sitting on about 30 billion dollars’ worth of oil.
“Meanwhile, if oil hits 200 dollars, there could be upward of 32 billion dollars at stake, which is EIGHT TIMES its current market cap.
“And that’s just the OIL.
“They’re also sitting on an equal amount of natural gas – which is up 110% this year.
“So they are still heavily undervalued, even after jumping 26% in less than a year.”
Based on those clues, we’re looking for a Texas-based oil and gas company with a market cap of around $8 billion.
More specifically, one that’s “sitting on” around 201 million barrels of oil.
There are a lot of Texas-based oil companies out there. And unfortunately, I wasn’t able to narrow this one down with the clues he provided.
So if you find one that looks like a match, let me know in the comments below!
Stock #3 (Rare Earth Miner)
The third stock Shah Gilani teased is a company that mines a mineral called neodymium, which he says is used to make the “strongest magnets on earth” and is apparently used in “90% of all EV motors produced.”
“This one has to do with magnets.
“Now, I know what you’re thinking… magnets to beat inflation??? Shah, you can’t be serious.
“But I can promise you these are not your ordinary magnets.
“They’re made with rare earth metals. And they are the strongest magnets on earth.”
“So what makes these magnets so valuable?
“They’re made of an extremely hard-to-mine mineral called neodymium.
“Magnets made of neodymium are synonymous with electric motion. To the point that they are in 90% of all EV motors produced.”
So, based on that, we’re looking for a company that mines neodymium.
And according to Gilani, the company was recently awarded a $35 million contract to produce neodymium magnets, which helps narrow it down further.
“… the Biden administration recently awarded this same small American firm a 35 million-dollar contract to build an end-to-end domestic source for new neodymium magnets.
“That’s on top of the $10 million the Pentagon gave them in 2020.”
Gilani also said that the company he’s teasing has signed a “long-term agreement” with General Motors to supply them with enough magnets to build 500,000 EVs a year.
“General Motors just signed a long-term agreement with this firm to secure enough magnets to build 500,000 electric vehicles a year starting next year.”
What could it be?
Well, according to defense.gov, Mp Materials Corp was awarded a $35 million contract to “design and build a facility to process heavy rare earth elements” in 2022.
And according to Yahoo Finance, MP Materials also has a supply agreement with General Motors that “will assist the production of approximately 500,000 EV motors.”
So, Mp Materials (MP) looks like a match.
Stock #4 (Agriculture)
Shah Gilani referred to this company as his “#1 AG stock,” and one of the main aspects of his thesis centers around what he’s calling a “global fertilizer crisis.”
“… the world is staring down a global fertilizer crisis because what happens next could quickly become a global food crisis.
“Nitrogen, phosphorus, and potash were already in limited supply.
“Then, two things happened that made the fertilizer situation a whole lot worse.
“First, China – which supplies 24% of the world’s phosphates, 13% of nitrogen, and 2% potash – halted fertilizer exports.
“Then, Russia invaded Ukraine, which put in peril 14% of the world’s nitrogen and 41% of its potash.”
What company is he teasing?
Here are Gilani’s clues:
“So what’s the best way to play it?
“With the only potash producer in America. A small-cap fertilizer company based out of Denver, Colorado, that’s sure to benefit from all of this government spending.
“That’s because the crops that consume high amounts of potash – like corn, soybeans, and wheat – are the grains that feed the world.”
“Management expects the company’s net profit to be around 150 million dollars a year, making this one of the best value plays on the market right now.”
That’s not a lot to go off.
But based on the above hints, Gilani could be teasing Intrepid Potash Inc (IPI), a Colorado-based producer of potassium chloride (potash). This company currently has a market cap of under $260 million, too, which means it’s a small-cap stock.
Given the limited clues, I’m not certain that this is a match, especially since I couldn’t find anything related to Gilani’s last clue about how the company’s management is expecting a $150 million per year net profit. But Intrepid Potash is a possible match.
Stocks 5, 6, and 7 (Dividends)
Lastly, Shah Gilani teased three separate dividend-paying companies as part of his “inflation crushing” stock picks.
Here’s what he said about the first company:
“First up is a mining stock that’s like a coiled spring for a commodity supercycle like this one.
“The best part is it’s a play with a 13.42% yield.”
“They mine mostly aluminum, copper, iron ore, and more importantly, lithium which has rocketed by almost 500% due to its importance in electric car batteries.
“The big news is they just acquired a huge property in the ‘lithium triangle’ in Argentina – one of the most prolific spots on earth.”
Upon researching companies that have recently acquired land in the lithium triangle, the main company that kept on coming up was Rio Tinto. But their dividend isn’t that high, and I suspect that Gilani might be teasing a smaller company.
So I’m not sure what this one is.
Next, Gilani teased a small-cap oil company…
“Second is small-cap oil play trading for around $5 a share.
“It’s what’s known as a ‘midstream.’ Which means it’s a key part of the critical infrastructure that transports oil from where it’s produced to the refineries where it’s turned into gasoline.
“What makes this play so attractive is they have developed a patented process that allows them to increase the amount of oil they transport by over 35%.
“That allows them to transport significantly more oil than their competitors at the same cost.
“Now, some of their biggest customers include Conoco Phillips, Suncor Energy, and Cenovus Energy – some of the biggest players in Canada and the Northwest.
“This stock pays out an incredible 9.12% per share.”
I have no idea what that one is, either.
But the good news is… I DO think I know what his third and final pick is, which was a Real Estate Investment Trust (REIT) company.
Here are Gilani’s clues:
“Finally, there’s my favorite REIT…
“A company that leases 1,336 properties worldwide, with over 50% of it being industrial and warehouse space.
“Their tenants include big names like Marriott Hotels, Extra Space Storage, and U-Haul… just to name a few.
“The payout is quite high at 5.09%.
“Meanwhile, the company boasts an amazing 39.17% profit margin.
“But what I really like about them is that 99% of their properties have rent increases built into their contracts, and 60% of them are actually indexed to inflation.”
Based on the above clues, it looks like Gilani might be teasing a company called W.P. Carey (WPC), which is a Maryland-based REIT.
I say that because, according to an article on Seeking Alpha, the company “owns 1,336 net-lease properties,” which it says amounts to “157 million square feet” of property that is primarily located in the U.S. and Europe.
That clue alone leads me to think that W.P. Carey is most likely a match, but the company also has a 6% dividend yield as of writing, which is close to what Gilani said.
Finally, the above article I linked to also says that “around 58%” of W.P. Carey’s rents that it collects “have CPI-based escalators included,” which is a close match with the last clue he shared above. So, this looks like a possible match.
Update (September 13, 2023) – 3 New AI Picks
I just finished publishing a write-up on Shah Gilani’s AI stock picks, and during my research, I was able to uncover three of his picks. They’re not exactly “AI stocks,” they are data companies, but Gilani believes they will grow as AI technology grows.
He describes AI as a “rocket ship” and data companies as the “fuel” they need.
Here are his AI picks:
- Palantir Technologies (PLTR)
- Iron Mountain (IRM)
- Digital Realty Trust (DLR)
You can see how I arrived at that conclusion by clicking the link I shared above.
What Other Stocks Has Shah Gilani Teased?
Over the years, Shah Gilani has recommended many different companies to subscribers of the different newsletters he runs. And the only way to know what companies he’s recommended and how his picks have performed would be to have access to a complete track record of those services, which, unfortunately, the company doesn’t provide.
That said, I did manage to find a handful of different stocks he’s recommended by doing some sleuthing on the interweb.
For instance, based on this article on stockgumshoe.com, Gilani appears to have recommended RingCentral (RNG) in (or somewhere in the ballpark of) November 2020 as part of his work-from-home “Hyperdrive Portfolio” picks.
He also made a few publicly viewable calls on TipRanks between 2010 to 2013. And if you visit that page, what you’ll find is that 1/3 of those calls worked out.
Aside from that, I managed to find a YouTube video that discussed five of Shah Gilani’s stock picks in early 2020, which the video suggests did okay. Those picks were the SPDR Gold Trust (GLD), Apple (AAPL), Visa (V), Alteryx (AYX), and Wells Fargo (WFC).
Here’s the clip I’m referring to:
All in all, there’s not a lot of info out there about Shah Gilani’s picks, so it’s difficult to piece together how his recommendations have performed overall.
That said, I did manage to find some reviews of the services he runs.
The service associated with Gilani’s “Inflation Beating Blueprint” stock teaser presentation (which we discussed earlier) is a $39/year service called “Total Wealth Investment Research,” and this appears to be fairly new. This service, from what I can tell, is essentially the “next step” for subscribers of his free newsletter, Total Wealth Research.
But he also contributes to the Money Map Report, which is a fairly well-known newsletter, and runs two other services called Extreme Profit Hunters and Hyperdrive Portfolio, both of which cost a cool $5,000 per year.
And of those, Hyperdrive Portfolio seems to have been more popular.
Is it a good service?
I’m not a member of Hyperdrive Portfolio, so I don’t know if it’s a decent service or not or how well the picks have performed. But I did find the service’s rating on Stock Gumshoe, which appears to be based on a few dozen user reviews.
Is Shah Gilani the real deal?
According to his moneymorning.com profile, Gilani ran his first hedge fund in 1982 at the Chicago Board of Options Exchange (CBOE). And 17 years later, in 1999, the site says he started a second hedge fund, which he ran until 2003.
At some point after that, it seems he got into the world of stock picking.
He’s also made numerous appearances on mainstream media shows like CNBC, which is pretty common for gurus in this space.
So, all in all, Gilani does seem to be a real investment expert, but it’s difficult to know for sure how successful his subscribers have been, given the company he works for (Money Map Press) doesn’t disclose how his picks have performed on average.
Recommended: Go here to see my #1 rated stock advisory of 2023
In what appears to be his most recent stock teaser presentation, Shah Gilani predicted that inflation will continue to rachet up going forward and teased a whole bunch of stocks that he suggests could help everyday investors “beat” high inflation.
Nobody knows what will happen regarding inflation, much less what companies will or won’t go up as a result. So I always recommend taking these presentations with a pinch of salt and keeping in mind that, ultimately, they are newsletter sales pitches.
Nevertheless, I always find it interesting to look into the different stock teasers out there and try to find out what companies are being pitched.
So, I hope you found this helpful. And if I do come across any Shah Gilani teasers this year, I will do my best to update this post. Thanks for reading!