Nuclear Risk in (GE), (ETR), and (SHAW)

The widening nuclear disaster in Japan has caused many of the world’s governments to take a closer look at their plans to expand nuclear power generation. Germany’s decision to shut down seven plants reflects a dramatic shift in policy by Chancellor Angela Merkel. Even countries like India and China, who seem to have fewer alternative ways to meet their burgeoning power needs, are also taking a second look (for safety and not strategy).

Though General Electric (NYSE:GE), Entergy Corp. (NYSE:ETR), and Shaw Group (NYSE:SHAW) also have considerable non-nuclear revenue sources, a decline in nuclear power plant construction would have a significant negative impact on all three.

General Electric Co. (GE) was looking to expand its $1 billion nuclear-related service business, but its involvement in the now-crippled Japanese power plants makes this expansion less likely. Looking at the last ten years of price action, GE shows a clear pattern of lower highs and lower lows. It was a $60 stock in 2000, but fell to $42 in 2007, and recently peaked just over $21.

General Electric closed Wednesday at $18.95, falling $0.66, or 3.37 percent. Entergy closed at $66.65, down $1.84, or 2.69 percent. Shaw ended the session at $32.83, down $1.31, or 3.84 percent.





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