There’s Still Time to Profit From This Trump Action

Written by Jason Simpkins
Posted July 12, 2019

Donald Trump is a man of action.

You might not agree with everything he does, but you can’t say he doesn’t get things done.

And that’s why we’re looking at July 14 as a major investment opportunity.

You see, in a recently-released report, the Commerce Department recommended that Trump take steps to protect America’s domestic uranium production as a matter of national security.

Shocking as it is, America — the world’s largest nuclear energy consumer — only produces 3% of the uranium it uses for nuclear power.

That means a staggering 97% of the nuclear power that produces 10% of our country’s electricity comes from overseas.

US Uranium Imports

And those overseas sources aren’t exactly reliable, either.

Russia and its satellite states of Kazakhstan and Uzbekistan account for roughly half of our uranium imports.

US Uranium Suppliers

That’s a problem.

And that’s why two of our country’s top uranium producers are asking Trump to impose a 25% domestic market quota.

That’s right. They want nuclear power producers to source 25% of their uranium from American mines.

Again, that’s up from just 3% right now.

Now, they probably won’t get that full 25% figure. They’ll likely be forced to compromise.

Multiple sources in the White House have said a potential compromise would be for a 5% domestic uranium quota that escalates by 5 percentage points a year.

That would give power companies more breathing room to switch suppliers.

It would also be a major boon for American uranium miners.

The U.S. uranium industry produced roughly 700,000 pounds in 2018. But a 5% quota would translate to 2 million-2.5 million pounds of demand.

That would be a tremendous windfall.

And the two miners who petitioned for the case are so confident they’ll get it, they’ve already begun expanding their mines.

They’re right to be optimistic.

That’s because while these petitions (coded 232) are relatively rare, there’s been an abundance of them since President Trump took office. And he’s approved every case so far.

In April 2017, the Commerce Department opened a 232 investigation into steel imports. Trump imposed tariffs on virtually all steel imports exactly one year later.

The same thing happened with aluminum.

The Commerce Department conducted an investigation, and then Trump put up tariffs on all foreign imports.

Now it’s happening with uranium — and soon.

Three days, to be exact.

You see, when the Commerce Department submits these reports, the president has three months to act on the findings. And now that the report has been filed — recommending that he take action — that window opens on July 14 — Sunday.

Make no mistake, this is going to happen… and sooner rather than later.

And that’s why we’re standing on the precipice of a major investing opportunity.

When Trump’s new order goes into effect, American uranium miners are going to skyrocket in value.

Remember, they’re essentially going to be asked to instantly triple their production to meet a surge in domestic demand.

And they’re ready to respond.

One small company, in particular, has seven U.S. uranium mines, which could scale up to 7 million pounds of production annually. All in less than a year.

Our own Nick Hodge has checked it out himself and recently issued a full report that you can get right here.

You should definitely check it out if you haven’t already.

Because by next week, this stock could be worth 10 times what it is today.

Fight on,

Jason Simpkins Signature

Jason Simpkins

follow basic@OCSimpkins on Twitter

Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of The Wealth Warrior, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's page. 

*Follow Outsider Club on Facebook and Twitter.

Investing in Marijuana Without Getting Burned