Cameco mines roughly 20 million pounds of uranium a year, and has 500 million pounds of reserves, he said.
Exelon Corp. (EXC, $54.24), Chicago, distributes electricity and gas to customers in Illinois and Pennsylvania. The company holds the largest number of nuclear power plants in the U.S., Hirt said.
"If anybody can operate a nuclear facility, it's these guys," he said.
Exelon's stock has dropped dramatically since July, but if gas prices start rising, the company will be able to increase its rates. That would give it much better profit margins on any new nuclear power generation contracts, Hirt said.
Shaw Group Inc. (SGR, $17.89), Baton Rouge, La., provides engineering, construction and other services for government and private sector clients. The company gets about 50% of its revenue from engineering and from designing fossil fuel and nuclear components and parts, and performing maintenance on power plants, Hirt said.
Shaw Group is in partnerships to make reactors for plants in the U.S. and overseas, he said.
The company has a backlog worth about $16.5 billion and has been selected for contracts that could be worth as much as $38 billion more, Hirt said.
Hit by the credit crunch's grip on the economy and flagging energy construction trends, Shaw Group's stock price is down from a high of $77.20 in November 2007. It is trading around its 52-week low.
The biggest risk Hirt associates with Shaw Group's shares is the possibility some of the backlog orders could be canceled if government incentives for nuclear energy diminish, construction costs are much higher-than-expected, or gas and coal prices stay low. There's also a timing risk, as it will likely take seven to eight years for any new U.S. nuclear plants to be up and running, he said.
"But if this nuclear renaissance materializes, a company like Shaw Group benefits," he said.
Hirt is analyzing the company to determine whether it should be added to the Applied Security Analysis Program's portfolio. He says the shares could trade as high as $25 in the next two years.
"I'd establish a small position and continue to add to it over the next three to six months," he said.
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