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A global energy company that supplies low enriched uranium for commercial nuclear power plants.
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southseacapital (< 20) Submitted: 9/13/07 4:00 PM : Start Price: $12.35 USU Score: -26.48
This pick is based on personal belief more than investment prowess. If countries are serious about drastically slashing their CO2 emissions then a shift towards Nuclear power and away from gas and coal will have to happen. Are governments farsighted enough to pay heavily up front for extremely cheap power in the future? Will they be smart about regulations and subsidies? Governments are the greatest risk to this industry and how they handle the situation will determine the companys profitability to a great extent. Public opinion is quickly changing in both Britain and America. Our fear and illusions keep us from the greatest power source that has ever been invested.
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southseacapital (< 20) Submitted: 9/19/07 3:28 PM
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[9/19/2007]I certainly did not understand the degree to which speculative pressure was pushing up the price of uranium. Also, currently the market is balking at the proposed 2.3 billion dollar American Centrifuge Plant project. People also need to remember that Nuclear plants take an enormous amount of time to plan and construct. Once you decide to build a plant, the entire process could take over 10 years. Newer plants can be built in less time, but they are also unproven, and regulators might be more likely to scrutinize every detail of the plant. People took claims of a Nuclear boom a little too far and now I'm paying the price by not picking the correct entry point. This stock has further to fall before we can correctly price the asset and the stocks.
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