It's the stuff you never hear about that makes the most money. Or at least the stuff you don't hear about until it's too late.
Big acquisitions. Clandestine loopholes in new legislation. Surprise upside earnings.
Here's an investment story that's way ahead of the curve for a change. The story actually begins in the U.S., but we'll pick it up with recent news from Korea and work backwards.
The $20 billion affirmation
South Korea has been perfecting a new type of nuclear reactor for the past 10 years.
The reactor, called the Advanced Power Reactor-1400 (APR-1400), has already gained international recognition, with Nuclear Street reporting it “includes safety features not found in conventional reactors,” like “a missile shield to defend against both an internal and external missile attack... seismic restraints and improved materials that would prevent damage to the reactor in the event of an earthquake.”
Right now, four of these reactors are under construction in Korea, with the first scheduled to come online next fall.
Here's how far ahead this reactor is...
Last year, the United Arab Emirates awarded a $20 billion contract to a Korean consortium to build four reactors. While that's impressive, it's even more so when you know Korea beat out nuclear stalwarts like Areva (Paris: CEI), Total (NYSE: TOT), GE (NYSE: GE), and Hitachi (NYSE: HIT) to get that deal.
That's how good this reactor is.
It's led the Korea Herald to declare “The nuclear power industry is Korea’s new growth engine, targeting the rising market for nuclear reactor construction worldwide. Local players aim to construct about 80 nuclear reactors by 2030 in global markets.”
Keep that in mind as we head back to the States.
The writing on the wall
Here in the U.S. — in Idaho, to be exact — a small company has been cutting through red tape for years in order to build the first investor-owned utility in decades.
It's already gained community support and, earlier this year, began to make rapid progress in the regulatory realm.
After numerous rallies, hearings, closed-door meetings, and committee sessions, the company now has two sites approved for construction of a nuclear reactor.
I'm sure you can guess which reactor it's trying to use...
You can bet this company is well aware of Korea's new world-leading reactor. And early this year, I began to hear rumors that the CEO was making frequent trips to meet with Korean higher-ups.
This is a story hardly anyone else is reporting. And even when I see it in the news, they never cover the entire story.
They just don't get it.
It's the other story, stupid
Whenever I see this story mentioned, the focus is always the same as any other nuclear story.
They talk about the company's plan, where the nukes are going to be built, and then focus on the standard nuclear issues: NIMBYism, potential catastrophes, proliferation, and other what-ifs.
What they're missing is the pure profit potential at hand here.
The company about to import these reactors is trading for less than $1.00. That's the real news here.
Because any deal they sign to use Korea's reactor will likely come with exclusive North American distribution rights.
And that means this tiny company could get a cut of every imported reactor.
Remember that line from above: 80 nuclear reactors by 2030 in global markets.
And also remember that the UAE paid $20 billion for four of them.
Those are the kinds of numbers we're dealing with here. And again, no one else seems to get it.
That's why I've authored this detailed prospectus to spread the word.
Call it like you see it,
Nick
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