EnergySolutions (ES)

out

Owner of the largest commercial radioactive waste disposal facility in North America and largest pure-play in nuclear energy services.

+ Maintenace and service contracts covering 80% of active nuclear reactors in North America (provides a base level of recurring business)
+ $19.7B in DOE contract opportunities (10yr realization)
+ 94% of contracts have cost coverage guarantee

Note: I expect the company to experience periods of weak cash flow generation over the next year or so as federal and state funding sources enter the market.

OBAMA, NUCLEAR ENERGY, WASTE, ETC.

Poised to grow and service the Nuclear growth of the next 2 decades.

out dated. criminal.

Nuclear>wind>nat gas.>coal>solar

Wind and Nuclear will be put on steroids by the govt come 2012.

This is one of my top nuclear plays. Kind of expensive right now, but still a good long term bet.

In 1849 would you have rather owned several mines or a pick and shovel company?
Auxiliary services are the way to go in the alternative energy ''gold rush.''

409

If ES wins the lawsuit allowing Italian waste, the stock with appreciate quickly. The company made a brilliant stroke when it offered to share 50% of profits, up to $1.5 billion over a decade, with the state of Utah if it will allow the importation of foreign waste. It's not often legislators can turn down that kind of money. If ES wins the lawsuit, it won't matter.

solid management. If they keep it up, this stock can only go up. Lots of room for growth in this sector.

Energy Solutions is a solid play, and way undervalued. PE is far lower than its competitors, and they have a solid position in their market, with few competitors. The CEO personally bought 300,000 shares at $15 a couple of months ago, and will be working feverishly to recover the company to that price and beyond. Very solid outperfomer.

Energy solutions is a must have. We need energy solutions. haha

Huge profit-taking today; should bounce up again.

Contracts that have already been secured will begin to pay off.
Lindsay Goldberg almost out shares to sell
Long term, use of nuclear power will increase (need for cleanup will increase)

Love this stock... uranium is the future of energy.

nuke

jWell Managed, Agressive management will outprform S&P after Jan 09.

Since the uranium bubble has popped, there is very little spoken of with respect to the nuclear trade. As many of the companies are good long term plays, many lack luster with respect to the near term as much of the United State's Government inventory of tail, uranium and plutonium are released to the market. Even with this, there will be pricing power going forward in nuclear as the White House knows they have an oil production problem going forward, which will continue to keep the dollar weak as we import more oil than we export. The United States can make a huge dent in the price of oil by setting up the electricity capacity to be able to recharge batteries of hybrid style vehicles. It is my thought that a massive amount of money will be poured into the grid as many nuclear and natural gas power plants are built. This should decrease the amount of gasoline used over the long term and at the rate other countries are developing a... More Since the uranium bubble has popped, there is very little spoken of with respect to the nuclear trade. As many of the companies are good long term plays, many lack luster with respect to the near term as much of the United State's Government inventory of tail, uranium and plutonium are released to the market. Even with this, there will be pricing power going forward in nuclear as the White House knows they have an oil production problem going forward, which will continue to keep the dollar weak as we import more oil than we export. The United States can make a huge dent in the price of oil by setting up the electricity capacity to be able to recharge batteries of hybrid style vehicles. It is my thought that a massive amount of money will be poured into the grid as many nuclear and natural gas power plants are built. This should decrease the amount of gasoline used over the long term and at the rate other countries are developing a taste for automobiles we better get started as nuclear reactors take about 4 years to build as opposed to a year for coal fired plants. I am not dismissing the fact that clean coal is an alternative, but I think the politicians will push cleaner methods of meeting electricity means as states such as California have plenty of votes to push their agenda.

Many of the nuclear plays are well known to investors although not the general public. Companies such as Cameco and Exelon have a presence and there is even an etf. The company I like in the short term is Energy Solutions. They specialize in the collection and removal of nuclear waste and byproducts. The reason their company is has upside is that there is no set disposal for nuclear waste or the cooling of the rods. Right now all waste is stored in the reactor. This was the resistance to building new reactors seen by the Federal Government. There were very few applications sent in for the permits because of a call for a nuclear disposal area as the utilities believe that it places them in a precarious liability. No sooner do the applications get approved and a new IPO enters the market.

Looking at the company they currently trade under what their opening day price was of their initial public offering. There are a few details I find interesting. First, they announced earnings for the full year of 2007 beating estimates by over 400%. Right after this they offered a dividend of .4%. They also guided up, $.69 to $.75 per share for the full year of 2008. This year they are estimating that they will decrease in growth by 14%. There are a couple of reasons I find this strange. Before this year the majority of their earnings were coming from the UK. This will currently help earnings on the strong Pound and Euro. Secondly, they are currently seeing a major increase of work associated with all the waste located at reactors that have been accumulating for years. I believe their acquisition of RSMC will dramatically increase their earnings capability and was paid through their IPO stock offering. Revenues through this acquisition increased over 300% year over year.

Long term the company sees $55 billion in contracts awarded by the DOE over the next three years, and I believe they will announce the signing of deals at this meeting. RSMC also provides them with the ability to expand their business in Europe. They are contracting with Shaw Group and Westinghouse to supply services for the nuclear reactors. If we look at company value they trade at a forward PE of 21 and this is based on a growth rate next year of 41% making the company inexpensive with respect to their PEG ratio. I believe this company will blow out revenues and earnings, if so look for high volume and a possible breakout as the company is valued well at this level. $.20 per share and $500 million in revenues is the ballpark figure.

ES provides waste removal services to many energy companies, particularly nuclear waste. This will become very profitable once nuclear energy is used more (may take a few years).

As much as we think that Nuclear is a bad word, it is used every day in thousands of hospital for imaging, health care, etc. Energy Solutions has recently expanded it's plant, and will be an ongoing concern as the baby boomer's get older and increase the use of nuclear medicine to improve the quality of life and extend it. So, the waste material from the health care industry hat needs to be disposed of will continue to grow.