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Nuclear power for the proletarian investor tired of oil price hikes: Entergy Corp. (ETR) , Exelon Corp. (EXC) Dominion Resources, Inc. (D), Progress Energy Inc. (PGN), Cameco Corp. (CCJ) or USEC Inc. (USU) April 22, 2006

Posted by deminvest in investment, investment strategies, Single stocks, Social investing, stocks.
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Let’s face it: we the people want to forget about Middle East stability and Irak – Iran related problems. We would with pleasure stop reading every morning about Palestinians fighting with Israel. There is only one way to achieve that: nuclear energy. Unless someone invents something new, we will have to get there anyway. Oil will finish. Sorry.

Without looking so far, right now prices of energy are up because of the hike in price for world’s first energy source: oil. So companies connected with nuclear power are making big money, selling their energy at higher prices.

I did some research to figure out which nuclear energy related company may be the best for me, energy hungry proletarian investors. It was not easy, because it seems Energy companies are a bit shy about admitting they operated nuclear plants… That is what I found:

 

Entergy Corp (ETR) operates 9 nuclear power plants. It produces energy, it is growing and it gives out pretty good dividend yields: Market Cap: 14.54B Trailing P/E: 16.70 Forward P/E : 12.67, Dividend Yield: 3.10%. It has big debts, corresponding about to one year of revenues. That is understandable considering how much it costs to build a nuclear plant.

 

 

Exelon Corp. (EXC) operates 11 nuclear power plants. It produces energy, it is growing faster than ETR and it gives out pretty good dividend yields: Market Cap (intraday): 35.80B Trailing P/E: 39.14 Forward P/E : 12.22, Dividend Yield: 3.00%. It has big debts, corresponding about to one year of revenues.

Dominion Resources Inc. (D) operates 4 nuclear power plants owner. It produces energy, it is growing and it gives out pretty good dividend yields: Market Cap (intraday): 25.68B Trailing P/E: 24.64 Forward P/E : 12.22, Dividend Yield: 3.00%. It has big debts, corresponding about to one year of revenues.

 

Progress Energy Inc. (PGN) operates 4 nuclear power plants owner. It produces energy, it is growing and it gives out the best dividend yields in this group: Market Cap (intraday): 10.71B Trailing P/E: 15.35 Forward P/E : 13.61, Dividend Yield: 5.60%. It has big debts, corresponding about to one year of revenues.

 

Cameco Corp. (CCJ) owns uranium mines in Canada and USA, but it only pays ridiculous dividends of 0,60% Trailing P/E: 73.46 Forward P/E: 30.74. I don’t think that uranium is what is most expensive in a nuclear plant.

 

USEC Inc. (USU) is a very interesting small cap company which does Uranium enrichment. Since it is a technology protected by national security, this company will fear little competition. Trailing P/E: 50.16 Forward P/E 21.93 very little debts and a lovely Dividend Yield of 4.30%.

 

I will see Monday what I will do (will let you know with a comment on this article. What I feel is that ETR is the best safe investment, where you can get the lowest price per nuclear plant, while USU is a tempting risky business…

But considering we a re talking about nuclear power, maybe it is better to go safe and actually chose ETR.

 

I will make you all a big present: the list of all nuclear plants in USA. Have fun checking if there is one next to your new house!

Plant Company Address
Arkansas Nuclear One (ANO) 1 and 2 Entergy Nuclear 1448 SR 333; Russellville, AR 72801
Beaver Valley First Energy Corporation P.O. Box 4; Shippingport, PA 15077
Braidwood Exelon RR1, Box 84; Braceville, IL 60407
Browns Ferry Tennessee Valley Authority PO Box 2000; Decatur, AL 35602
Brunswick Progress Energy PO Box 10429; Southport, NC 28461
Byron Exelon 4450 North German Church Road; Byron, IL 61010
Callaway Ameren PO Box 620; Callaway, MO 65251
Calvert Cliffs Constellation Energy 1650 Calvert Cliffs Parkway; Lusby, MD 20657
Catawba Duke Energy 4800 Concord Road; York, SC 29745
Clinton Exelon PO Box 678; Clinton, IL 61727
Columbia Energy Northwest Richland, WA 99352-0968
Comanche Peak TXU PO Box 1002; Glen Rose, TX 76043
Cooper Entergy Nuclear PO Box 98; Brownville, NE 68321
Crystal River Progress Energy 15760 West Power Line Street; Crystal River, FL 34428-6708
Davis Besse First Energy Corporation 5501 North State Route 2; Oak Harbor, OH 43449
DC Cook AEP 1 Cook Place; Bridgman, MI 49106
Diablo Canyon PG&E PO Box 56; Avila Beach, CA 93424
Dresden Exelon 6500 North Dresden Road; Morris, IL 60450
Duane Arnold NMC 3313 DAEC Road; Palo, IA 52324
Exelon Exelon Suite 400, 1400 Opus Place; Downers Grove, IL 60515
Farley Southern Nuclear PO Box 470; Ashford, AL 36312
Fermi 2 DTE Energy 6400 North Dixie Highway; Newport, MI 48166
FitzPatrick Entergy Nuclear PO Box 41; Lycoming, NY 13093
Fort Calhoun Omaha Public Power District 444 South 16th Street Mall; Omaha, NE 68102-2247
Fort Calhoun Omaha Public Power District PO Box 399; Fort Calhoun, NE 68023-0399
General Electric General Electric Nuclear 171 Curtner Avenue; San Jose, CA 95125
Ginna Constellation Energy 1503 Lake Road; Ontario, NY 14519
Grand Gulf Entergy Nuclear PO Box 756; Port Gibson, MS 39150
Hatch Southern Nuclear Highway US1, Box 439; Baxley, GA 31513
Hope Creek PSE&G PO Box 236; Hancocks Bridge, NJ 08038
Indian Point 2, 3 Entergy Nuclear Broadway & Bleakley Ave.; Buchanan, NY 10511
Kewaunee Dominion N490 Highway 42; Kewaunee, WI 54216-9510
LaSalle Exelon 2601 North 21st Road; Marseilles, IL 61341
Limerick Exelon PO Box 2300; Saratoga, PA 19464-0920
McGuire Duke Energy 12700 Hagers Ferry Road; Huntersville, NC 28078-9340
Millstone 1,2,3 Dominion PO Box 128; Waterford, CT 06385
Monticello NMC 2807 West Highway 75; Monticello, MN 55362
NEI Nuclear Energy Institute 1776 Eye Street, Suite 300; Washington, DC
Nine Mile Point 1,2 Constellation Energy PO Box 32; Lycoming, NY 13093
North Anna Dominion PO Box 402; Mineral, VA 23117-0402
NPPD Nebraska Public Power District PO Box 98; Brownville, NE 68321
Oconee Duke Energy PO Box 1439; Seneca, SC 29679
Oyster Creek Exelon PO Box 388; Forked River, NJ 08731
Palisades NMC 27780 Blue Star Memorial Highway; Covert, MI 49043
Palo Verde Arizona Public Service Company PO Box 52034; Phoenix,AZ 85072-2034
Peach Bottom Exelon 1848 Lay Road; Delta, PA 17314
Perry First Energy Corporation PO Box 97; Perry, OH 44081
Pilgrim Entergy Nuclear Rocky Hill Road; Plymouth, MA 02360
Point Beach NMC 6610 Nuclear Road; Two Rivers, WI 54241
Prairie Island NMC 1717 Wakonade Drive East; Welch, MN 55089
Quad Cities Exelon 22710 206th Avenue North; Cordova, IL 61242
River Bend Entergy Nuclear PO Box 220; St. Francisville, LA 70775
Robinson Progress Energy 3581 West Entrance Road; Hartsville, SC 29550
Salem PSE&G PO Box 236; Hancocks Bridge, NJ 08038
Seabrook FPL PO Box 300; Seabrook, NH 03874-0300
Sequoyah Tennessee Valley Authority PO Box 2000; Soddy-Daisy, TN 37379
Shearon Harris Progress Energy PO Box 165; New Hill, NC 27562
San Onofre (SONGS) 2 and 3 Southern California Edison PO Box 128; San Clemente, CA 92674
South Texas Project STP Nuclear Operating Company PO Box 289; Wadsworth, TX 77483
St Lucie FPL PO Box 128; Ft. Pierce, FL 34954-0128
VC Summer South Carolina Electric & Gas Company PO Box 88; Jenkinsville, SC 29065
Surry Dominion 5570 Hog Island Road; Surry, VA 23883
Susquehanna Pennsylvania Power & Light Company PO Box 467; Berwick, PA 18603
Three Mile Island Exelon PO Box 480; Middletown, PA 17057
Turkey Point FPL PO Box 4332; Princeton, FL 33032
TVA Tennessee Valley Authority 1101 Market Street; Chattanooga, TN 37402
USNRC US Nuclear Regulatory Commission 11555 Rockville Pike; Rockville, MD 20852
Vermont Yankee Entergy Nuclear PO Box 157, Governor Hunt Road; Vernon, VT 05354
Vogtle Southern Nuclear PO Box 1600; Waynesboro, GA 30830
Waterford Entergy Nuclear PO Box B; Killona, LA 70066
Watts Bar Tennessee Valley Authority PO Box 2000; Spring City, TN 37381
Wolf Creek Wolf Creek Nuclear Operating Company PO Box 411; Burlington, KS 66839-0411

Comments»

1. Peter Grynch - April 24, 2006

USEC no longer offers a dividend. It is, however, building a state-of-the-art centrifuge enrichment plant which will make it the world’s lowest cost producer of enriched uranium.

2. deminvest - April 24, 2006

That is very interesting, sorry for the mistake about dividends… Usec is still extremely interesting, but I feel there is plenty of compnies which are making right now huge amounts of money with nuclear Energy. I prefer to buy one of them, rqther than waiting for the new Plant to be ready. If I can find an investment good in the short and in the long run, why should I get one which is good only on the long run?

But I will keep an eye on USU because what you wrote is very interesting. Maybe I will buy some USU next month.

3. retirein - April 24, 2006

It looks like you did alot of work to come up with D having 4 plants. D has 4 sites, 7 plants. I think there are quite few gaps in your analysis.

4. deminvest - April 24, 2006

D has 4 sites and 7 units.
I counted the sites and not the units but I used the same meter for all companies. Also ETR has sites with 2 units, like Arkansas Nuclear One (ANO) 1 and 2.
Counting the units would have been longer and still wrong:
I should have counted the total Energy output for each company, because some large plants yield 1200 and some small ones just 600.

I think the number of sites gives a good figure of comparison among those companies, to figure out whom produces more Nuclear Energy. I will invest at marketing opening on ETR, as stated, also because ETR produces most of its Energy on nuclear Plants, whyle D relays more strongly on other sources of Energy.

5. deminvest - April 24, 2006

Oki companions:
I just bought 15 Entergy Corp (ETR) stocks at 69,6. Let the force be with me!


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