1. Rod, your problem was simple, you were a far better prophet than a business man. You just had a prophetic business that was 20 years ahead of its time.

  2. I don’t rain on AEHI’s parade for arbitrary or personal reasons. The firm is a merchant play which means it will depend entirely on investor confidence in its project. On one hand AEHI has worked to boost confidence in its stock by registering with the SEC and moving from Pink Sheets to OTC. On the other, most of the investment in the firm still comes from executives and board members. Until there is a broader base of investors, and a credible investment bank, it is unlikely that the firm will ever build a reactor in Idaho or anywhere else. Profits from the rise in stock price from the land use decision in Idaho will accrue to the stockholders but that’s all.

  3. Rod –
    It was a great day for AEHI……not bad for me either. I was sitting on 4000 shares I bought for .10 each – sold 1000 of them @ 1.00. and Dan, yes, if the stock dips, I’ll buy ’em back again.

  4. I believe the reason it is so difficult for companies to obtain capital for nuclear investments is the long payback period of nuclear. Majority of the cost is up front and the benefit is in the future revenues, which, in terms of IRR and ROI, is perfectly fine. However, Wall Street is all about the get rich quick mentality – they want to recognize immediate returns with no focus on long term portfolio growth. Nuclear energy is a great, stable, long term investment that will continue to yield predictable, sustainable returns over the life of operation. But like I said, Wall Street isn’t into that anymore; they’d rather precipitate the collapse of an economy for the sake of fast gains rather than patiently watch their investments grow at a stable rate.
    In order to lower cost of capital a few things need to happen: a loan guaranteed by the government should have a substantially lower interest rate than the nuclear loans of times past (I’ve seen figures that put the average at 17% – not sure how reliable that is though), and there needs to be a paradigm shift in the financial industry whereby we get back to recognizing the value of projects that are capitally-intensive with future cash flow benefits. Pie in the sky, I know, but it will go a really long way to driving down the total cost of new nuclear construction since financing costs alone can represent up to 50% of the total project cost.

  5. @Rod — AAE isn’t asleep, it’s in suspended animation. As to your business experience, I am reminded of this famous quote by Pres. Teddy Roosevelt:
    Good ideas that are ahead of their time have a way of being “rediscovered”. Only time will tell if AAE is one of them.

Comments are closed.

Recent Comments from our Readers

  1. Avatar
  2. Avatar
  3. Avatar
  4. Avatar
  5. Avatar

Similar Posts