Artificial intelligence is the most power-hungry technology of all time.
A single chatbot query uses 10 times more energy than a Google search, however the self-described “Indiana Jones of finance,” Karim Rahemtulla has uncovered something called an “Energy Cube” that he believes is the solution to our power woes.
The Teaser
It's supposed to be the most important energy breakthrough of the past century, but outside of the Pentagon, Department of Energy, and a few Silicon Valley insiders, no one knows it even exists.
Karim is a 30-year investment industry veteran, head tactician and co-founder of the Monument Traders Alliance, and author of the bestselling book, Where in the World Should I Invest?: An Insider's Guide to Making Money Around the Globe.
We know him best from such teaser reviews as The Ultimate Stock Unicorn and #1 U.S. Stock to Soar From 2-Nanometer Chips.
In this teaser, Karim wastes no time revealing what the “energy cube” is, saying:
It fits on the back of a flatbed truck and can be transported to wherever power is needed, you just sit it down, flip a switch, and it delivers always-on clean power
Now he doesn't explicitly state what it is, but from this description we can gather that he's talking about Small Modular Nuclear Reactors (SMRs).
This much is confirmed a little later on in the video presentation by Karim:
SMRs are a clean source of power that fit on the back of flatbed and can be transported anywhere, but they are hardly a secret, having been touted by newsletter gurus in past teasers that we have reviewed here.
Now, rapidly rising energy demand, due to AI, and a lack of truly scalable alternative solutions, has breathed new life into the old energy source. It's been gaining renewed traction throughout the world.
The initial build out phase of SMRs is now behind us, but we're about to enter the more lucrative second phase…approval and deployment, which will make a pair of stocks go nuclear.
The Pitch
Both names are revealed inside a new report called The $10 Trillion Energy Cube Rollout: 2 Stocks Behind Every AI Megawatt.
The catch, as always, is that it's only available to subscribers of Karim's Monument Trend Advisory research service.
It costs $179 to join for the first year, which is around 20% off the regular price of $229, and it comes with two bonus reports, as well as a one-year, 100% money-back guarantee.
The Energy Cube Blueprint
Every story has a what, how, and when.
In our SMR story, the what is a past pick of Karim's, Rolls-Royce Holdings Plc (OTC: RYCEY), which has been working on perfecting the “energy cube” concept for the better part of the past fifty years.
The original British luxury carmaker shed it's auto manufacturing division after being nationalized in 1973 and has primarily focused on designing and building power systems, including compact nuclear reactors for Royal Navy submarines, ever since.
Over decades, it has mastered its craft. Building factory-made SMRs running on pressurized water reactors that can power 470 megawatts while every other manufacturer is stuck in the 77-300 Mw range.
However, what powers SMRs is only the first part of the story, the next part, how they are built, is where Karim says the opportunity lies.
Unlike traditional power plants that take around 10-15 years to build, SMRs can be constructed, installed, and brought online in only 2-4 years.
Rolls-Royce makes theirs in a factory, which is both lower-cost and more efficient. But one partner company holds the contracts for site work, system integration, and long-term operation, and it's Karim's first pick.
As for the when, Karim has August in mind.
This is when UK's Office for Nuclear Regulation is expected to complete it's Generic Design Assessment of Rolls-Royce's SMR, which is the final step before the licensing process can commence.
Nuclear is the most proven, reliable, energy-dense power source ever developed and according to Karim, these are the best ways to profit from it.
Revealing Karim Rahemtulla's “Energy Cube” Stocks
Everything is lining up at once, policy, capital, technology, and timing.
The only thing left is to find out the names of Karim's two “energy cube” stocks.
First Energy Cube Stock
- This company manages the delivery of large nuclear programs.
- It's managed major projects, such as the largest nuclear construction site in British history at a cost of more than £30 billion.
- Rolls-Royce has selected them as the delivery partner for its SMR build out.
The name we're looking for here is Amentum Holdings Inc. (NYSE: AMTM).
- Amentum is an advanced engineering contractor for government and commercial sites.
- It designed the intake and outfall heads, shafts and tunnels for its client Balfour Beatty, which is the primary contractor on the UK's Hinkley Point C nuclear project.
- Amentum is the delivery partner for all of Rolls-Royce's various SMR projects around the world.
Second Energy Cube Stock
- This business provides safety monitoring equipment required for nuclear operations.
- It's equipment is found inside 90-95% of all operating nuclear sites.
- NASA trusted it to protect astronauts on the Artemis II mission.
The second pick is Mirion Technologies Inc. (NYSE: MIR).
- By some accounts, Mirion's equipment is installed in over 90% of nuclear plants, leading the market.
- The crew on NASA's Artemis II moon mission wore Mirion dosimeter devices that helped track individual radiation levels.
Make 13x in 5 Years?
This figure is the exact amount Rolls-Royce stock has appreciated from July 2021 to the present.
Karim is banking on UK SMR approval and outperformance by his pair of picks to replicate Rolls-Royce's outstanding performance over the coming years. However, there are some divergences in his thesis.
First, Rolls-Royce bounced off the bottom from a £4 billion loss in 2020 due to the aviation industry basically shutting down.
While it's true that Amentum and Mirion are both down for the year, they sport healthy to high valuations of 35 and 173x current earnings, respectively.
Second, according to the International Energy Agency (IEA), nuclear and renewables together are projected to generate 50% of global electricity, up from around 42% today. Not the kind of exponential growth headwind typically needed for a ten-bagger.
In fact, onsite battery storage has already surpassed nuclear power in some parts of the world.
Finally, things may be “lining up” on the macro front, but they don't look good on the micro, fundamental level.
The underlying economics of Karim's picks are uglier than a Christmas sweater.
Both carry substantial billion-dollar debt loads with sub 5% profit margins and returns on equity.
There will no doubt be a rally when SMRs are eventually approved and licensed, but I'm not seeing the sustained multi-bagger potential in Karim's “energy cube” picks.
Quick Recap & Conclusion
- The self-described “Indiana Jones of finance,” Karim Rahemtulla has uncovered something called an “Energy Cube” that he believes is the solution to AI energy demand.
- Karim is referring to Small Modular Nuclear Reactors (SMRs) and now that their build out phase has been completed, we're about to enter the more lucrative second phase…approval and deployment, making a pair of stocks go nuclear.
- Both names are revealed inside a new report called The $10 Trillion Energy Cube Rollout: 2 Stocks Behind Every AI Megawatt. But it's only available to subscribers of Karim's Monument Trend Advisory research service, which costs $179 to join for the first year (normally $229).
- Sugar cube, ice cube, energy cube, it doesn't matter, because we revealed both of Karim's picks for free as Amentum Holdings Inc. (NYSE: AMTM) and Mirion Technologies Inc. (NYSE: MIR).
- SMRs will eventually win approval in the UK and elsewhere, but the biggest winners are unlikely to be Karim's “energy cube” stocks due to their underwhelming underlying economics.
Will SMRs help ease increasing global energy demand? Let us know what you think in the comments.