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They stagger aimlessly along, overwhelming portfolios, dragging down defenseless stock indexes, and devouring hard-won profits. I'm talking about "zombie" companies, and, unlike movie monsters, they're a very real threat.
There's no killer sci-fi virus infecting them. These companies financed outrageous growth during the powerful bull markets of 2010 through 2021, packing on triple-digit stock price gains along the way, while making nothing of any real value.
The five companies I'm going to name in a second took on some $16.8 billion in debt for pennies in interest.
Only, after a rapid-fire series of Fed rate hikes, that debt has become cripplingly, even fatally expensive.
And on November 2, the Fed will raise rates by 75-basis-points for the fourth time in a row. It's the beginning of the end for these firms.
Clearly, you should sell any and all of these five stocks if you own them - and chances are you do. I'll name the stocks and tickers in just a second.
But there's rich opportunity here, too. I recommended trades on my five previous "Zombie" picks the last time the Fed hiked rates. We made a killing: 52% in 28 days, 100% in 34 days, and another 100% win in just eight days.
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About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.