Wall Street's Nuclear Caution
The July 10, 2006 issue of BusinessWeek includes a commentary titled Nuclear Power’s Missing Fuel: Why Wall Street is skeptical of backing a new round of proposed nuke plants.
As the column points out, there is a great deal of froth in the alternative energy technology market. Headline articles talking about ethanol, biodiesel, solar and wind technology investments frequently appear in entrepreneurial and investor oriented publications while there is little discussion about investment opportunities in the nuclear business.
I believe that there is a lot of ignorance in the investment community about the diverse nature of the business; I think that the general perception is that only huge, old line companies like monopoly utilities, GE and Westinghouse can play in the game.
As an investor as well as an entrepreneur, I beg to differ. The coming nuclear renaissance will need assistance from plenty of suppliers; I know there are opportunities out there for the best ones to become what Peter Lynch and other value oriented investors used to refer to as “10-baggers” – companies that increase in value by 10 fold.
