Marc Lichtenfeld’s Commodities Supercycle Summit Stocks – Make 1,000% or more in 2 years?

Trends Expert Marc Lichtenfeld called the 2022 oil surge and now he's banging the drum about a once-in-a-generation Commodities Supercycle.

The way to profit from this coming perfect storm is with several “Commodity Multiplier” Stocks that have the potential to beat commodities by 10x or more.

 

The Teaser

This coming commodities boom is said to be even bigger than what we saw during previous supercycles in the 1970s and early 2000s.

Marc Lichtenfeld is the Chief Income Strategist of The Oxford Club and an author of multiple books, including You Don't Have to Drive an Uber in Retirement. 

We have previously reviewed Marc's “full wealth-building system” The Oxford Income Letter and his #1 “IRM” Play for the Housing Crisis teaser.

For those who weren't around to dance to disco in the 70s, that's when assets like oil, silver, and gold far outperformed all other asset classes.

Marc believes it is a mathematical certainty we are headed toward $5,000 gold, $250 oil, $200 iron, and many more records, based on the numbers he’s seeing in the commodities markets.

Why is he so confident?

He's simply following the money.

BlackRock, the world’s largest asset manager says that we should “plan for decades of high commodity prices.”

Carl Icahn has invested hundreds of millions into commodities in his personal and business portfolios and Warren Buffett’s Berkshire Hathaway has kept adding to its massive stake in Occidental Petroleum.

Marc also knows where we are in the grand scheme of things today.

The Massive Commodities Shortage

This one chart shows how many commodities were or are in short supply:

From aluminum, which is used to make everything from beer cans to airplane engines, being in a deficit for the first time in over a decade to central banks scooping up gold at the fastest pace ever, and electricity demand growing around the globe, it's a recipe for the strongest commodities supercycle of our lifetimes.

Marc tells us that he's going to reveal the details of several stocks that could return 1,000% or more in as little as two years.

 

The Pitch

All the details are revealed in a special report called  “3 Commodity Multiplier Stocks for the New Supercycle.”

This urgent briefing is only available to a very limited number of people who join Marc's Technical Pattern Profits research service, aimed at profiting from the biggest trends in the markets.

The retail price of the service is $4,000 a year, however, a 63% discount is offered for a limited time, so new members only need to pay $1,450. For this price, Marc promises 12 new recommendations over the next year, Friday Forecasts, featuring Marc's take on the markets, access to a model portfolio, and a couple of special reports.

 

The Signs of A Commodity Supercycle

A supercycle is defined as “a long period of increasing demand and rising prices for commodities.”

Marc confides that such supercycles usually last a decade, on average, and they are marked by some tell-tale signs.

High Inflation

This is named as the primary reason we are now entering one of the strongest commodity supercycles ever.

By official count, inflation has come down since hitting a 40-year high in 2022. 

However, the CPI used to measure the “core” rate of inflation strips out food and energy prices, making it less than useful. 

If we add these two all-important components back in, the real rate of inflation is closer to 12% as of 2023. Yikes!

High Debt Accumulation

Inflation and debt hurt most stocks.

Excessive debt, like the $2 trillion Mount Everest of commercial real estate debt expected to mature in the next two years can easily undermine economic performance. 

However, this is precisely when commodities tend to outperform, just like they did during the downturns of the 1970s and early 2000s.

Resource Scarcity

I touched on how constrained supplies are across the resource sector earlier.

Analysts at the vampire squid that is Goldman Sachs second this sentiment, saying “Commodities will remain stuck in a state of long-run shortages, with higher and more volatile prices.”

If history repeats itself, we’re near the beginning of the bull cycle, with a massive profit runway ahead.

During the last two supercycles, the broad S&P 500 returned zero percent, while commodities returned something closer to 500%.

This is where the three Commodity Multiplier Stocks come in, as Marc believes they will be the biggest winners in this new supercycle, and they are all small-cap stocks. Let's find out what they are.

 

Revealing Marc Lichtenfeld's Commodities Supercycle Stocks

There's a lot to go over here, so let's dive right in.

Commodity Multiplier Recommendation #1

• A small oil and gas company that’s growing year-over-year earnings by 1,175%.
• It operates in the Permian Basin and has one of the lowest costs in the industry, at only $16 per barrel.

These clues led me to Earthstone Energy Inc. which was acquired by Permian Resources Corp. (NYSE: PR) in August of last year.

• The former Earthstone Energy grew from a small-cap company producing approximately 15,000 Barrels of Oil Equivalent Per Day (BOEPD) to one with a production base of over 130,000 BOEPD, in less than 3 years.
• Earthstone was a large-scale, low-cost oil producer in the Permian Basin, which is why Permian Resources scooped it up.

Commodity Multiplier Recommendation #2

• It started the only active agriculture-quality potash mine in the United States.
• The company is still a small-cap trading around $25 per share.

Marc is talking about Intrepid Potash Inc. (NYSE: IPI).

• Intrepid is the only dedicated potash producer in the US.
• Shares currently trade just below $20 with a market cap of $250 million.

Commodity Multiplier Recommendation #3

• This gold miner extracts millions of ounces of gold from tailings using its propriety nano-extraction technology.
• It can do this for only $1,127 per ounce and trades for around $10 per share.

There were two choices here, but only one matched up perfectly – DRDGOLD Limited (NYSE: DRD).

• The company's stated aim is to become a “green gold miner” by using its proprietary Ergo gold tailings retreatment process.
• DRD shares currently trade for around $7.

Bonus: Commodity Multiplier Stock Trading Under $1

• This nickel mining company is one of only a few with a foothold in the good ol' US of A. It is the only company that owns undeveloped high-grade nickel reserves in the USA
• The company has entered into a contract with Tesla to supply nickel for their battery production.

The stock in question here is Talon Metals Corp. (OTC: TLOFF).

• It is a US-based miner working alongside Rio Tinto on the high-grade Tamarack Nickel-Copper-Cobalt Project located in central Minnesota.
• Talon entered into an agreement with Tesla back in 2022 for the production of battery materials.

 

The Best Stocks for the Commodity Supercycle?

As far as commodity supercycles go, I guess whenever oil gets above $100, it's considered a supercycle now.

A long-term commodities bull market, sure. Supercycle, not yet.

Overall, I'm bullish on the resource sector, as the world is losing arable land, meanwhile, the population is increasing. The same can be said for energy and other critical materials used to make everything from clothing to cell phones.

When it comes to Marc's stock picks, here are my brief thoughts on each:

• Permian Resources: A solid business with a decent dividend yield (3.4%), selling for a fair price (15x trailing earnings).
• Intrepid Potash: A company with a slight competitive advantage (as much as one can get in a commodity business) that is trading like a company with a competitive advantage at 40x earnings.
• DRDGold Limited: Higher margin (23%), higher return on capital (22%) technology play in the resource space. 
• Talon Metals: A high upside, moderate downside play at only $0.10 per share.

Commodity supercycles tend to happen alongside downturns in the broader stock market, which hasn't happened yet, with the S&P 500 up over 4% so far this year.

But when the market does inevitably enter bear territory, this could be the biggest commodity supercycle yet, given the supply/demand factors at play.

 

Quick Recap & Conclusion

• Trends Expert Marc Lichtenfeld is calling for a once-in-a-generation Commodities Supercycle and he has several “commodity multiplier” stock picks that could return 10x more than just buying a commodity ETF or a futures contract.
• This Commodities Supercycle is being driven by a perfect storm of high inflation, resource scarcity, and high debt accumulation.
• Marc reveals his picks in a series of special reports, which are only available to subscribers of his Technical Pattern Profits research service. The cost of the service is a not-so-cheap $1,450 for a limited time.
• Fortunately, you don't have to pay this price, as we were able to reveal all of Marc's picks for free here at Greenbull. They are Permian Resources Corp. (NYSE: PR), Intrepid Potash Inc. (NYSE: IPI), DRDGOLD Limited (NYSE: DRD), and Talon Metals Corp. (OTC: TLOFF).
• The Commodities Supercycle of which Marc speaks isn't underway…yet. But when it does inevitably hit, it could be the biggest and longest supercycle ever, given the supply/demand dynamics, unpayable debt, and high inflation.

What is your favorite way to invest in commodities? Tell us in the comments section below.