| We were in a jeep kicking up dust and dirt slowly | | | | both have plans to expand their own power |
| crawling our way towards the mountain ridge. It | | | | networks. Each nuclear power plant being built |
| was late in the afternoon, and we were both | | | | today costs somewhere between $1.5 and $2.5 |
| tired. Jim turned to me and said, "You know, | | | | billion dollars. |
| there is a bigger problem in this industry. Nobody | | | | This is no small industry and people are making |
| is talking about it but it's gonna bite them in the | | | | lots of money-- but some companies will benefit |
| back-side." | | | | more than others. |
| My ears perked up, as Jim was an old timer with | | | | General Electric, for example, is a major supplier |
| a wealth of knowledge and experience. He had | | | | of components and systems for nuclear power |
| been around the world working in the mining | | | | plants. GE Energy's division sells large scale |
| industry, and today I was lucky enough to have | | | | equipment like N Series steam turbines which are |
| him show me some old mining claims up in the hills | | | | made specifically for nuclear reactors. They also |
| of Utah. | | | | sell both new and used parts, plant monitoring and |
| His eyes sparkled, and his 70+ year old nature | | | | performance software, and nuclear |
| gave way to a little kid struggling to keep a | | | | instrumentation including monitors. |
| secret. "After they quit mining uranium in this | | | | Using GE's products and services you could |
| area, all of those geologists and engineers moved | | | | practically build a nuclear power plant from the |
| on. Now anyone who has any experience is dead | | | | ground up! |
| or ready to retire." | | | | Sounds great, but GE is not going to benefit much |
| He was right. | | | | from this growing industry. They are too large of |
| At the peak of the uranium mining boom in the | | | | a company and this is just too small of a division |
| early 1970s, more than 20,000 people were | | | | for them to have an impact on earnings. Despite |
| employed as engineers and geologists. Today the | | | | having 50 years of experience, there will be other |
| number is closer to 400. In case you haven't | | | | companies that benefit more from this boom in |
| noticed, uranium prices are up more than 500% in | | | | nuclear energy than GE. |
| the last few years. This commodity boom is | | | | In my opinion, the big money will be made by |
| driving uranium and nuclear-related stocks higher. | | | | companies exclusively focused on providing |
| In my mind, many of them still have a long way | | | | processing and services for the nuclear energy |
| to go. | | | | industry. This is an area that just doesn't get as |
| Worldwide, there are about 440 nuclear reactors | | | | much attention from the mainstream investment |
| generating electricity today. That number is about | | | | media. |
| to grow significantly in the next few years. The | | | | As such, I have spent the last few months |
| industry reports some 30 new nuclear reactors | | | | researching the industry, speaking to experts, |
| under construction and a good deal more under | | | | visiting mine sites, and doing due diligence (basically |
| development. | | | | using my investment banking contacts to get on |
| The US, France and Japan lead the world in the | | | | the "inside"). As a result, I have uncovered 4 |
| use of nuclear power for generation of electricity. | | | | relatively obscure companies that are set to soar |
| It should come as no surprise that India and China | | | | in this rapidly growing industry. |