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!