Subscribe in a reader
The Only Bargain Stock Left in Uranium
Could you think of a clearer sign that problems are looming in an industry? When the industry’s unquestioned leader’s stock price gets cut in half, you can bet there’s a problem. In USEC’s (USU:NYSE) case, there are clearly more than just a few problems.
But problems at USEC could be very far-reaching. Just like we saw the ripple effect of a few over-aggressive lenders going bust throughout the entire markets, big problems at USEC could have far-reaching effects throughout the U.S. electricity market. And it’s these far-reaching effects that are creating an opportunity for investors.
You see, USEC is the quasi-government company in the Unites States that is responsible for 100% of the uranium enriched in the country. That uranium is responsible for providing as much as 17% of the country’s total electricity supply. As you can imagine, with the uranium market as tight as it is, any problems at one of USEC’s enrichment facilities could result in drastic shortage of enriched uranium, forcing nuclear power plants to close down.
The current problem USEC is facing is constant delays with its next generation enrichment facility in Piketon, Ohio. The new facility, called the American Centrifuge Project, is using a uranium enrichment technology that hasn’t been proven on a large scale yet.
Using this new type of centrifuge technology is a big bet for USEC. European uranium-enrichment monopoly Urenco and the Russians have been using a different centrifuge technology to enrich uranium for years. USEC decided to use its own and, so far, it hasn’t gone well.
That’s why the company’s stock price has plummeted 50% in the past few months. The investment community is starting to put together this highly technical and complicated story.
However, it’s probably not going to be a big problem in a long run. Private enterprise has already spotted the opportunity that the government-created monopoly isn’t likely to solve. Right now, two big energy giants with market values totaling $500 billion have been aggressively working on the next generation of enrichment technology. The problem should pass almost unnoticed by the public at large.
However, a small group of investors have caught onto the problem and are investing in the solution that has already earned the backing of these multibillion-dollar energy companies. And here’s the best part: Their technology is advancing as scheduled, unlike USEC’s. But there’s a lot more to the story than that, and you can learn all about it here.
Good investing,
Andrew Mickey
Editor in Chief, BreakAway Investor
You've Already Missed the First 96% Gain... Don't Miss the Next 407% Still to Come!
A high-level U.S. government "cover-up" has helped a tiny company secure a virtual monopoly on a critical uranium-enrichment technology. BreakAway Investor readers were among the first to get in on this incredible opportunity - and they're already seeing nearly triple-digit gains!
But this company could still rise another 407% by November. The next run will soon start when the company releases important news. Load up on shares now!
Follow this secure link to become a BreakAway Investor member and receive immediate access to this recommendation...
I'm Bullish on Everything! Well...
10/8/2007
Investing in Solar Energy: Free Energy From the Sun -- Up 473%!
10/5/2007
Housing: Exactly Where Is the Bottom, Citigroup?
10/4/2007