Mark Skousen’s “New Oil” Energy Company – Real Chance to Strike it Rich?

Eagle Financial's top analyst Mark Skousen is back and breaking a massive story in the global energy market.

It's an alternative energy source Mark calls “The New Oil” and one energy company is at the heart of it.

 

The Teaser

While politicians are stuck debating endless wars, climate change, and whether fossil fuels or “green energy” is the way to go. The rest of the world is moving on…

Mark Skousen is a classical economist in the mold of Milton Friedman and Henry Hazlitt, so his reasoning is usually pretty sound. I have previously reviewed his $6 “Dark Lithium” Micro-Cap Company teaser and “Profit Code” strategy, which is a back-tested and proven trading strategy that has produced actual returns.

What the likes of China, India, Russia, and even Saudi Arabia are now turning to is an alternative energy source.

One far more powerful than anything we have ever seen.

To be clear, fossil fuels are the bedrock of modern society.

However, there's no getting around the fact that they pollute the atmosphere although modern technology has helped curb their emissions over the past 70 years, it’s still a serious problem in many parts of the world.

Have a look:

It’s no wonder “green energy” like solar and wind have gotten traction.

But here's the problem…

Besides the fact that the sun doesn’t always shine, and the wind doesn’t always blow, solar panels require a long list of materials that have to be mined out of the earth, making it just as dirty as fossil fuels.

Then there’s wind power.

Today’s windmills use blades made from nonrecyclable plastic and these blades have to be replaced once every 20 years. More than 17 tons of plastic goes into each blade. Meanwhile, you're sucking out of paper straws.

Still, over the past two decades, we’ve spent over $5 trillion to “transition” the economy to green energy.

Unfortunately or fortunately, renewables still only make up 12% of the total energy supply.

But there is a better way.

A way to make everyone happy by creating energy that is cheaper, cleaner, and more efficient, while also weening ourselves off of our fossil fuel addiction.

Mark isn't talking about biofuels, geothermal, hydrogen, or any of the other crackpot ideas you’ve likely heard about.

What he's talking about is very real.

So real, that it’s been quietly supplying us with cleaner energy for the past 70 years and one company stands to reap the lion’s share of its benefits.

 

The Pitch

Mark has put all the details in a brand-new special report called: The Future of Power: Mark Skousen’s #1 Play for the New Energy Renaissance.

The report is ours with a subscription to Mark's Forecasts & Strategies newsletter, which normally costs $249 per year, but for a limited time, we can get the first 12 months for $77.

This price includes a 30-day money-back guarantee, 12 monthly issues, weekly updates, a trio of special reports, quarterly conference calls with Mark, a members-only website, and an old-school hotline.

 

The Most Powerful Source of Energy There Is

For the past 100 years petroleum, natural gas, and coal have supplied America with 80% of its energy needs.

However, the world will need a lot more energy going forward.

Globally, the electricity demand is expected to increase by 50% over the next two years.

With our current energy mix, that would require burning an extra 4 billion tons of coal, an additional 2 trillion cubic meters of natural gas, and 18 billion barrels of oil per year.

A tall task considering politicians are already trying to kill fossil fuels.

We need a new power source and that source is…nuclear energy.

one uranium pellet – the primary fuel inside nuclear reactors is equal to 17,000 cubic feet of natural gas, 120 gallons of oil, and a ton, literally, of coal.

It already makes up 50% of America’s clean energy and growing demand for it is beginning to cause its price to surge.

Mark believes it's about to go a lot higher for a few reasons.

The Case for “New Oil”

The first is industrial demand, ten years ago, China had about 18 nuclear power plants running.

Today, they’re up to 55. That's more than the United States and another 46 are either planned or currently under construction.

Russia’s goals are just as lofty.

Despite being one of the most oil-rich nations on earth, they have plans to build another 30 nuclear reactors, double the number they have today.

Then there’s India, which is planning to build another 10 nuclear plants over the next three years.

The second reason is the fact that its one of the few bipartisan issues in the country.

Pew Research found that two out of three Republicans favor more nuclear power, as do half of Democrats.

Finally, it's the most reliable source of clean energy there is and one uranium miner is best positioned to take advantage of the nuclear trend. Let's find out what it is.

 

Revealing Mark Skousen’s “New Oil” Energy Stock 

Mark hints at the company he teases throughout the presentation, here is what we know:

• It is the largest uranium miner in the U.S.
• Shares currently trade for around $10 and the company has a $1 billion market cap.
• At the ends of the past two decades, this stock quickly skyrocketed by 1,000% within a couple of years.

A handy AP article gave me the answer I was looking for. Mark's “New Oil” pick is Energy Fuels Inc. (NYSE: UUUU). The clues line up with precision like engineers building nuclear reactors.

• New Energy is widely acknowledged as the largest uranium producer in the United States. 
• Shares of the company currently trade just above $6, down from $8 at the start of the year and the market cap is hanging onto $1 a billion market cap by a shoestring.
• UUUU stock shot up at the end of 2010 and again at the end of 2020.

 

Can We Strike it Rich With This “New Oil” Energy Stock?

The long-term price trend of uranium is decidedly up

This is expected to continue right up until 2030.

After that, it will all depend on how many new plants and reactors are built.

Energy markets will always be cyclical, but over the long term, they go up due to rising demand. 

This covers us on the macro side, but what about Energy Fuels as a standalone business?

Well, Mark wasn't bluffing. 

The miner's balance sheet is cleaner than a fresh haircut. It has nearly $196 million in cash on hand against non-existent debt of less than $1.5 million and its net tangible assets make up nearly half of its market value.

As a shovels-in-the-ground miner, its margins are compressed, however, a valuation of only 10x trailing earnings makes up for this.

Overall, Mark's pick is a quality business with a margin safety built into its market price and some positive macro headwinds behind it.

 

Quick Recap & Conclusion 

• Classical economist Mark Skousen is teasing an alternative energy source he hails as “The New Oil” and one energy company is at the heart of it.
• The so-called “New Oil” is nuclear energy and it's the most reliable source of clean energy there is. It produces the equivalent of 17,000 cubic feet of natural gas, 120 gallons of oil, and a ton of coal inside a single uranium pellet.
• Mark has put all the details in a brand-new special report called: The Future of Power: Mark Skousen’s #1 Play for the New Energy Renaissance. The report is ours with a subscription to Mark's Forecasts & Strategies newsletter, which is on sale for $77 for the first year.
• Fortunately, Greenbull readers got Mark's “New Oil” pick for free, its Energy Fuels Inc. (NYSE: UUUU).
• Energy Fuels is a capital-intensive uranium miner, but it is available for a fair price and it has some major macro headwinds behind it.

Is nuclear energy really the “new oil”? Tell us what you think in the comments.