Nuke'em Lloyd
I wasn’t really a big fan of GS but I think they just created what would likely be the most awesome desk in trading history. Someone give Blankfein a white Persian cat.
According to the New York Post, Goldman Sachs is about to go nuclear and will be adding uranium to its commodities group.
Through last year’s acquisition of the London-based <a href="//www.wallstreetoasis.com/tag/energy-trading">energy trading</a> firm Constellation Energy Group, Goldman inherited a stockpile of uranium which they admittedly took for granted. However, with ongoing rise in demand and the anticipation of a surge in uranium-fueled power plant development, the once overlooked asset might now prove to be another of the bank’s cash cows as they now prepare to go full on with uranium delivery.
What do you guys think of this? Business-wise I feel that this is a great idea for <a href="//www.wallstreetoasis.com/company/goldman-sachs">GS</a>, analysts are <a href="http://finance.yahoo.com/news/The-2011-Uranium-indie-60430823.html?x=0&.v=1">expecting</a> a boom in 2011, the World Nuclear Association is <a href="http://www.world-nuclear.org/info/inf22.html">predicting</a> significant growth in demand over the next 10 years, and some <a href="http://www.miningweekly.com/article/uranium-demand-to-increase-four-times-over-the-next-30-years-2010-03-19">experts</a> go even further saying that it will quadruple; so there might be more than just a few pennies to pick up here.
On the publicity side however this might not be so good for them- my Blofeld reference alone reflects that. <a href="//www.wallstreetoasis.com/company/goldman-sachs">GS</a> isn’t exactly out of the woods yet PR wise and adding uranium <a href="//www.wallstreetoasis.com/finance-dictionary/trading-overview">trading</a> to their lineup will surely get the bleeding heart twits going, knocking on Goldman until it eventually gets labeled “THE” evil corporation over all.
The public is powerless in this case however, but I can’t help but feel that vision will get another whipping from the blind. Nevertheless they don’t have a 007 and if they do I’m sure it’s no Connery. Goldman will go on slyly stroking pussy.
Well, GS isn't getting its energy policy or climate change advice from Sen. Inhofe, I'll say that.
I've been pursuing a similar strategy. That said, I think the real money is going to be in coming up with a solution for the waste and/or the Thorium/Uranium cycle. If someone can come up with a breeder/reprocessing system that has the same risk profile as a traditional commercial nuclear reactor, we can turn waste that's going to be radioactive for millions of years into fuel.
Many states have refused to license new reactors until there is a long-term solution for nuclear waste.
Three problems
1) almost all uranium production is used in fission reactors
2) yellowcake, anyone?
3) regulation
General supply/demand rules don't necessarily apply here.
Try to do a little homework on osmium...this is a pretty gray area, in general.
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