Investing in the Nuclear Industry

Is easier than you think but no one talks about it

A while ago, in NYC, I was attending a posh wedding where I even bumped into Tony Bennett walking around.

This was the time I was just swimming in 1-5000% gains in uranium mining stocks.

At the dinner table, I was talking to some folks who happened to be environmentalists, not favorable to nuclear power or my capitalist bet.

“What about the waste?”

I gave some passionate arguments, but their eyes glazed over. I knew then to save my energy on people who don’t see reason.

Way before what we are seeing almost daily in the news.

I also learned at this wonderful wedding, and I'm giving this TIP to you single guys out there for free…

→Always tell the girl you want to flirt with that you are a surgeon, investment banker, or corporate lawyer

Whatever you do, don’t say this:

Much time has passed, and the industry collapsed after Fukuyama 99%, but as a phoenix soared to new heights.

“What about the waste?”

I always wanted to know how the industry would answer. And what I learned was to change the subject.

Cover up the objections.

Plough forward.

And if that occurs, I feel you should be more confident about this emerging industry.

Since the nuclear industry is small, there are not many names out there. So a simple Google search will show

Centrus, Cameco, Denison, Oklo, Lightbridge, UUUU, ASPI, and SMR for starters

Maybe if you are lucky, you will see BWXT and GHM

And if you are looking for speculative moonshots regarding Uranium mining, you go to the second tier, like Mega Uranium, etc.

Interestingly, nothing has changed in the names since the last big nuclear/uranium bust-up in stocks, except that there are more reactor companies and a few are soon to IPO.

But does it pay to chase these names?

They all look like Cameco

I don’t think so.

99% plunges and 1000% gains without anything to show for it represent investor mania and depression.

How are you going to invest in something without any metric other than the fact that the US is going full steam ahead?

And how can you invest in Oklo significantly when Sam Altman's ChatGPT has an uncertain future? And that the AI boom may be a bubble?

You look for companies that provide MANDATORY chokepoint services that the miners and the builders need, or no uranium out of the ground and no construction.

Like, Alexander Cortes , chemicals is where it’s at.

You need a lot of chemicals to process uranium (and other metals as well) and engineers to construct and assemble the entire nuclear ecosystem, in addition to parts, big or small, that are essential to operate the SMR and whatnot.

I feel what we consume online for free is lazy, and the stocks should go up, but I believe that the real money is in looking at what I’m discussing.

Because everyone, even the environmentalists, is invested in the easy plays like Cameco. And an easy cocktail starter.

So if you are at a wedding now, you can add

“I was an early venture capitalist in the nuclear industry”

But start talking about AP, the least sexy name I have found in nuclear, and they may pardon themselves.

I wrote about this before, but they supposedly have key components you need for nuclear reactors.

Since it's small and not liquid, the big players can't swim in the pond, but you can.

And with manufacturing coming back, this is a company you should consider.

Make it a powerful Thursday,

Eric

PS. Subscribe so when I see a good opportunity, I’ll try to share it in a timely manner.