Title: Save the environment, go nuclear
Category: Other
Blog Entry: Dealing with global warming is becoming a growing issue everyday. Like most of my fellow Americans, we are concerned with the environment but we're not willing to significantly compromise our lifestyle. This is why I think nuclear energy will become a significant source of electricity. It has zero emmissions and is relatively economical. In terms of scale, wind power and solar energy is not sufficient enough to significantly replace fossil burning fuels.
I think the best way to profit from the nuclear age theme is through uranium producers. Over the next 15 years, there will be quite a few nuclear plants coming online. Until recently, there has been no major investments made in uranium production. On average, it takes approximately 7 to 10 years to bring a uranium mine on to production. Stong demand and under investment in new mines means supply deficit.
Recently, there have been a lot of new uranium companies hitting the market. Most are in the exploration phase. In my opinion, many of them will not see production of this hot commodity. To get leverage from a hot market, look for companies that are a year or two away from production. The percentage price movements should be greater than the commodity itself. In a rising uranium market, you want to be exposed to these budding producers.
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