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Big Media has fed investors a steady diet of stories about the benefits of "green" energy. Slap "green" on anything, and it seems to attract investment dollars.
Wind power and solar have, in turn, exploded as profitable investing niches. At first, the reality lagged behind the PR, but, in all fairness, as the technology and its capacity for power generation has grown and matured, what was once "hype" is becoming profitable reality.
But here's the thing: Investors' narrow view of what "green" energy is – wind and solar – has them leaving billions in profits on the table.
Those profits are there for the taking for folks who have the full, real picture.
Now, you may think this is shocking, but, in my view, that picture absolutely must include nuclear power.
I'll show you why, because I know a company whose shares are primed to double (or better) in value because it has fully embraced nuclear power for what it really is: clean, safe, renewable energy.
Here's what I mean…
Nuclear Has Learned and Improved from History
As a journalist, I've followed the nuclear power industry for decades. I did a groundbreaking series of stories about the field in the mid-1980s and have kept abreast of those trends.
Overwhelmingly, I've been enthusiastic about what I've seen.
But of course, I watched, just as horrified as everyone else, terrible nuclear accidents, like Three Mile Island in Pennsylvania, Chernobyl in Soviet Ukraine, and Fukushima Daiichi in Japan. Who could forget those? They're permanently seared into our memories. An HBO miniseries, "Chernobyl," a not-entirely-factual dramatization of the 1986 Soviet accident and its aftermath, was a smash hit just last year.
Here's the thing: Three Mile Island's reactor was designed in the 1960s. The reactors in Chernobyl and Fukushima were designed in the 1970s. In other words, this is 40- and 50-year-old technology by now, and reactors like these have either been decommissioned or are coming offline all the time.
As terrible as these incidents were, they were also instructive for reactor designers all around the world, who incorporate ever more reliable safety features, to the point where accidents like Three Mile Island, Chernobyl, and Fukushima are all but totally impossible.
No wonder nuclear power is in full-on "growth" mode.
Still, there persists the unfortunate notion that nuclear is inherently dangerous. Nuclear power is, basically, infinitely renewable: atoms are split, and the heat energy released as steam spins up turbines to generate power.
Nuclear power plants are becoming ever more carbon-neutral, as well.
But critics point to the issue of nuclear waste from spent fuel rods.
And it is true that this waste is dangerous, and is for centuries, but our understanding of how to manage waste, and the technology we use to manage it, has grown in lockstep with nuclear power's progress.
The solution is as simple as it is effective: to bury the waste in stable, ancient bedrock, out of the water table, away from fault zones, where it can do no harm.
And good thing, too, because nearly every nation on Earth has a pressing need to use nuclear power to generate reliable, cheap electricity. There's no one "silver bullet"; there needs to be a mix of wind, solar, geothermal, and nuclear as we slowly phase coal and other fossil fuels out.
Environmental effects aside, the simple economics of coal don't work anymore, and the time of other fossil fuels is rapidly coming to an end.
Consider that the World Nuclear Association (WNA) says global electricity demand is increasing about twice as fast as energy use. And that trend is expected to remain true through at least 2040.
What's more, a recent Massachusetts Institute of Technology (MIT) study noted that the system cost of electricity in the United States would, without nuclear, be two times what it is currently. In China, the cost would rise four-fold.
Now you know why this energy source is still very much in the game. According to the WNA, China, the United States, and other advanced economies rely on nuclear reactors for 18% – make that 18% and rising fast – of their power needs.
And that is where today's tech investing recommendation comes in…
The Next "Atomic Age" Is Here Now
Turns out there's one company that the energy industry and the U.S. government turn to for their nuclear needs and insights.
And it started in 1856 in Lynchburg, Va., building steam engines.
By World War II, the firm was supplying the U.S. government with materials and process development for the Manhattan Project – the top-secret race to develop a nuclear weapon that would ultimately end the war.
In the early 1950s, it designed and built components for USS Nautilus, America's first nuclear-powered submarine. By the 1960s, these folks were building utility-scale reactors.
Yes, BWX Technologies Inc. (NYSE: BWXT) has been on the cutting edge of nuclear research and development for decades. It works with the world's nuclear heavyweights, in a network that includes NASA, the U.S. Department of Defense, and the Department of Energy.
That has placed BWX at the nexus of a massive, lucrative industry-wide upgrade cycle – one in which scientists and designers will deploy their hard-won knowledge of nuclear risk mitigation.
As we've seen time and time again in tech investing, tapping an upgrade cycle is like locking in profits. They're almost unfailingly profitable, and, with a technology like nuclear, they can last for 20 years or more.
This Stellar Performer Has a Bright Future
Even now, we see this playing out. France gets 70% of its electricity from nuclear. China has 45 nuclear power plants with 12 under construction. And, unlike reactors of the past that were each custom-built to a specific site, modern reactors are standardized.
One size fits (just about) all. This makes construction and operations much more reliable – and far safer. If a problem occurs at one plant, it can be isolated before it becomes an accident, and then fixed across the entire system.
Nuclear facilities also can be much more strategic because they don't have to be gigantic in footprint or output. There are new reactors being built now that are "modular."
This last aspect is key for the modern nuclear industry. Today, nuclear power plants tend to work on a big, regional scale; one might power half a state, for instance. But these new plants can be built on a small scale to power a small city or town, reducing risk and waste.
And as a city grows, it can add new reactors to the original ones. That reduces up-front costs and means the plant can be scaled up as needed.
If that performance sounds impressive, well, so does the stock. Despite its 164-year history, BWX only went public in 2015. Over the past four years, it has grown per-share profits by more than 100%.
If it just maintains that pace, the company could double earnings once again before the end of 2024, making this an excellent long-term hold. Put it in your "growth" portfolio.
And since stock prices tend to follow earnings growth, that means this is a good way to keep powering your portfolio higher for years to come.
And in the meantime, don't forget to check out my presentation on this six-figure payday opportunity…
By now, you've heard the 5G story a million times over. You've seen the billboards, you've seen the commercials, and you've seen the hype campaigns.
But there's a key reason why there hasn't been a nationwide rollout yet. It was following in the footsteps of the 10 years it took 4G to roll out… but the FCC just stepped in with a $10 billion initiative to supercharge 5G. Here's how to take your slice…
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.