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Tag: USU

Nuclear Energy is in Obama’s Policy

Obama is talking currently in his State of the Union address.  He’s endorsing a lot of spending programs to stimulate the economy.  He wishes to cut taxes for small businesses and large businesses alike.  He will give incentives for companies to move their offshore businesses in-house.  He also re-iterated his commitment to alternative energy.  This includes solar, wind, and nuclear energy.

He stated to continue the clean air act that we needed better clean energy programs.  The first topic he stated was building more nuclear energy plants.  I already have endorsed two companies that look good for this, EXC and USU.  Both companies have been dropping since their has not been any news on nuclear programs, but Obama has finally rung the bell to nuclear.  There will be loan funding for nuclear plants in the future and I believe these two companies are great plays.  Exelon has multiple nuclear power plants already in the United States.  They are a profitable nuclear energy company.  Obama would want more of these plants to bring more jobs in the US.  He knows infrastructure will be important to moving forward.  Look for them to continue to grow in the future.

USU, USEC, is a play on the government funding.  They have already been given exclusive access to old nuclear warheads to extract uranium.  They have also been doing extensive R&D to create new nuclear power plants.  I think this company is in great position to be given loan fundings. They already have done their research to create the next nuclear plants through their American Centrifuge program.

Prosperous Times are Ahead for 2010

We have just went through one of the worse periods ever in the United States.  The second great depression has finally past.  It’s time to rebuild.  We, as a nation, will continue to have a flourishing economy.  Better times are ahead, and with that, we will have continued stock growth.
Commodities will continue to become a key player.  The billions of dollars being produced will bring us out of one of the worse catostrophies in US history.  It will bring on an offset of inflation that will beset to become another problem the government will have to control.  We can use this to our advantage.  Oil, gold, platinum, palladium, silver, all these commodities will become more valuable.  We’ve already hit $1200 gold.  We still haven’t seen this record growth in the ‘useful’ metals.  I’m talking the commodities that are used to build things.  As the global economy continues to grow, we will see another surge of industry booms.  This means more demand for oil, more tools to be built with silver, and platinum and palladium being used to build more cars.  Don’t listen to the naysayers.  The dollar might be strengthening now but long-term commodities will become more valuable.
As we continue to get away from fossil fuels we will become more dependent our clean resources.  Natural gas will continue to get more popular.  We have stockpiles of natural gas.  Fractural drilling has brought on one of the largest stock piles of natural gas in the US.  We saw the prices hit rock-bottom in 2009.  Watch the natural gas stocks start moving up like oil has for the past 30 years.
Alternative energy will continue to prosper.  We are in no period to which we can reverse.  It’s not the 1980s where we will hit rock-bottom oil prices.
China is growing at a record pace.  It will need more oil.  Same as other growth counties.  As we use up the last stockpiles of oil we will need to adjust our demand for fossil fuels and move into alternative energies.  Look for wind power, solar power, geothermal energy, and nuclear energy to grow.  We are still figuring out the potential of each.  With Obama money you will see continued growth in all these alternative energies.  Climate change will furthur strengthen the cause for alternative energies.  Diversify.  Put money into good companies and watch your stocks grow as the economy improves.
Healthcare will again become a growing industry.  We have a bunch of boomers that have reached retirement age.  They will need healthcare, retirement centers, and bring another influx of necessary services to help the seniors.  We also have a new government funded health plan that will bring insurance to all the people.  Demand for generics will increase.  Look for major healthcare companies to find ways to make money in these areas.
As people begin working again look for retail to increase.  Look for major stores that will produce affordable goods.  Look to supermarket stocks such as Kroger to grow.  They produce affordable perfumes and other items that people would normally go to malls to buy.  They have diversified their inventory base to produce for affordability and the frugal consumer.  They are producing for the future where we will become a saver nation. Watch for major department stores such as Wal-Mart to continue to be key leaders in their industry.
The banking industry will continue to grow once again.  Banks have finally paid off their TARP money.  Small and medium size banks will consolidate to the bigger Wells-Fargo, Citigroup, JP Morgan, and Bank of America.  Major banks will become the defining financial companies to run our country.  Agree to disagree.  The government will make sure these financial companies stay in business to keep us running.
Prospering times are ahead.  We will have our normal corrections, but let it be known, we have reached the bottom of the economic cycle.  It might take a while to start moving up, but it’s time to position your investments for the future.  Now, let’s make some money!

Nuclear Energy is the Future after Cap and Trade

I’m taking a gamble with this play but the risk vs reward looks really good. I’ve been researching the uranium business and it seems like now is a great time to play it. Stockpiles are very high and the demand for uranium is picking up with the future to be nuclear plants. The recent cap and trade proposal will cut many emissions including the coal power plants and oil industries. This will put furthur pressure for alternative energies and nuclear energy. These energy alternatives are very clean and will still be within the bounds of carbon emissions.
I’m looking at USU. It’s the only company currently working with the government. The government is supplying uranium to USEC throught old nuclear warheads. This is the only company getting this benefit. Not only is this helping the environment but it brings over $5 million dollars worth of uranium and helps remove the stockpiles of nuclear waste. Look for this company to get more financing from the government. They also have the new nuclear technology American Centrifuge to utilize for the future US nuclear power plants. All they need is the funding of the Department of Energy. They stand a great chance at getting this loan.
The construction of new nuclear plants would put many unemployed people back to work. It also would be part of Obama’s plan to use clean, renewable energy. France already utilizes 90% of it’s energy from nuclear. China is set to produce more than 10 nuclear power plants. We won’t be caught out of a bright future for cheaper and more clean energy. Expect the US to join the global effort for cleaner energy and USU to be one of the main companies in the United States to bring it.

USU stands at $3.62. The possibility of dropping furthur is really slim. They could get bought out at these prices. Once they get the loan expect this stock to skyrocket to $6. Great long term play!

Commodities Just Keep On Dropping

Will the hurting ever stop?  Silver stocks are falling, oil stocks are dropping, and all of the energy stocks are going down.  Its funny to see the financials actually moving up in this turmoil.  I do believe the commodities are due for an up-turn.  If you take a look at the silver, the prices have dropped below $13 an ounce.  This year it hit an high over $20 an ounce.  I’m hoping it starts moving up earlier than later.  Make my CDE move up, not down 🙂

No matter what happens in the presidential election there will be a place for uranium.  Nuclear energy will be the next strong point to fixing our energy problems.  Nuclear energy is clean and has many more safty measures than in the past to keep things safe.  Look for stocks like USU to go up.

Another material to start watching is steel.  These stocks have dropped over 20% within the week.  Termium (TX) has a forward PE of 3.5.  It’s the lowest I’ve seen for such a big company.  One thing that kept it dropping was the nationalization of the Sidor mine in Venezuela.  It dropped more when the sale negotiations with the president did not work out.  You can bet that this stock is close to its low and its time for it to start moving up again.