“Unauthorized Photo” and game-changing nuclear power in Idaho

WP Greet Box icon
Welcome! If you are new to Stock Gumshoe, grab a free membership here and join us to get our free newsletter alerts with new teaser answers and debunkings. Thanks!
Not new? Please log in at top right of this page

I think it’s likely that a lot of you have seen this ad, from Nick Hodge for his Alternative Energy Trader service, and it’s not all that disguised so I expect quite a few of you have also already figured out the name of the company teased … but it’s getting a lot of play, and I’m getting a lot of questions, so I thought I better write it up quickly for your edutainment.

Alternative Energy Trader, by the way, is yet another “bump up” subscription from the Angel Publishing folks — I guess it’s the next step up from the Alternative Energy Speculator, which itself hasn’t been around all that long and was seemingly an “upgrade” from Green Chip Stocks (Trader will cost you $999, Speculator $499, Green Chip less than half that — a nice little progression as you drive each subscriber up the latter to the next rung). That’s not to say there’s anything wrong with this, it’s what essentially every one does and it’s the logical way to extract more money from a group of subscribers — though I know from reading thousands of reviews of newsletters that the constant “upsell” drives folks crazy almost as often as does poor performance.

But we had a point today, yes? Getting to it, never fear.

From my days as a direct mail copywriter for nonprofits and charities, back before my beard started turning grey, I remember that the first thing most people read is the P.S. at the end of the letter — so let’s check that out first, this is how the letter ends:

“P.S. I forgot to mention something to you. Because this company is so small, we can only open 500 spots for Alternative Energy Trader. With nearly 400,000 readers, we just can’t open this opportunity to everyone. So starting right now, you’re on the clock — only the first 500 who respond get in. No exceptions or extensions. This is the only way we can make sure everyone gets the same fair shot at those 18,000% gains.

“P.P.S. Late-Breaking News: On April 27th, the company I’ve been telling you about cleared a huge hurdle. In a unanimous decision, an Idaho Commissioners’ Board approved a key change that allows for this company to build its industrial complex on a 5,000 acre plot of land, provided that complex involves building a nuclear power plant. With this development, your 18,000% gains are closer than ever. But remember, you must move fast to be one of the 500 people I’m releasing full details to…”

The teaser is built around a company that’s trying to build a nuclear power plant in Idaho, and the tease is that there was a secret meeting between a U.S. executive (for the teased company, naturally) and the South Korean Prime Minister, when they talked about the crux of their deal, and that Hodge got a secret “unauthorized photo” of that meeting.

And the basics of the deal? Importing South Korea’s nuclear power plant designs (the APR 1400 reactor) and using them to build a new nuclear generation plant in Idaho, on land that is now appropriately zoned and in an area where they apparently have at least some local support to build such a plant. Hodge gives some reasons for why this investment will make you 200 times your money:

“Reason #1: The secret meeting backed by $54 billion worth of U.S. government cash

“It’s common knowledge by now that Obama is embracing nuclear energy…. tripled the amount of loan guarantees for nuclear power to $54 billion in his budget request.

“He’s practically hemorrhaging money to get nuclear energy in place as soon as possible.”

We’ve certainly heard that before, and it spurred quite a few nuclear stocks forward after the State of the Union address. This deal is a specific one, though, so let’s learn some more about it:

“When the ink dries on their deal with Korea, the small nuclear energy outfit I’ve been talking about will have inroads to the some of the most effective, powerful, and economical reactors in the entire world….

“… they’re likely to soon be granted permission to erect brand-new APR1400 nuclear reactors on an obscure plot of land in Idaho.

“But that’s not all this firm’s deal with Korea would hand them…

“According to the terms of their talks, if other North American energy companies decide to go through Korea for similar reactors, this firm would get paid a hefty commission on every reactor built.

“And not only here in the United States, but on the entire continent.

“It’s nothing short of incredible what this small company (it has just a $35 million market cap) has been able to accomplish in such a short amount of time…”

And as to the financing of this future nuclear plant?

“They already have a $70 million deal in place with a Connecticut firm that will cover the costs of everything from applications to securing the land and water rights they need.”

He did have a “reason #2″ why this one would make you rich, too, but I’ll just paraphrase: “sometimes small stocks on the cutting edge go up dramatically.” OK, we can accept that … as long as you say “sometimes.”

And the third reason you’ll become wealthy from this investment?

“Reason #3: I’ve already been right about this company… TWICE

“As you might assume, building nuclear reactors isn’t easy…

“In fact, the road of approvals is long and tedious.

“But this company has numerous advantages. According to recent information, not only will thousands of jobs be created through construction and plant operation, but reactors will also change the financial landscape in Idaho.

“Other businesses will be required to support the folks working at the plant, which is expected to create nearly $3 billion for the state’s GDP during construction.

“Most of that money will go to the local area while clean, low-cost energy is being created for the region.

“That’s why this company has received overwhelming support from the community (80% of local citizens have voted for this company’s progress), and is coasting at record pace towards becoming THE American nuclear franchise.

“And although it’s little more than a formality for these guys, they still have to go through the process of approval — for legal reasons.

“The thing is, every time a new approval takes place, the share price of this company jumps drastically. It has literally doubled over the span of just two days.

“For instance, on January 15, 2010, I knew there was going to be a zoning meeting, and I was certain the outcome was going to be favorable…

“So I recommended the stock to a close group of folks I share my secrets with — and 48 hours later, they were sitting on 110% gains.”

He gives another example and show some charts, essentially just showing a big jump from 10 to 20 cents in January, then another from 11 cents to 17 cents in April. Which should reinforce how volatile the stock has been, and that it has fallen back when it rose on prior occasions.

And that’s all more than enough, of course, to name the stock for you — though I actually hesitate to do that, given how much attention it has already received, and how ridiculously the stock has spiked in just the last month or two … and it’s up 25% just today as I type this. But you’re all grown-ups, so let’s just acknowledge that this is …

Alternate Energy Holdings (AEHI, trades on the bulletin board)

And yes, the latest political approvals, early though they may be, have had a big influence on the stock, as has the attentions of our friend Nick Hodge, and the company’s own promotional work.

This is a holding company set up to invest in alternative energy, though the potential nuclear plant in Idaho is by far their largest asset and their principal focus. They explain it all on their website here, and the most significant “major hurdle” cleared recently was the local commission’s approval of the change of their plan to designate AEHI’s site in Payette County as industrial land, specifically for a nuclear plant.

And AEHI is nowhere near a $35 million market cap these days, it’s closer to $175 million now, though that’s not surprising for a stock that has gone up something like 500% over the last couple months, with the vast majority of that change coming in the last two days (20 cents to $1 at one point on Wednesday, it’s at 75 cents now). And the promotion from this newsletter appears to be a major factor in the move, there was a press release on Tuesday but it appears to me that it was essentially just repeating the same news that they had announced in late April about the commission’s approval.

So … as far as I can tell the project is real, and it does have political and potential financial support on at least some level from the Governor, the local Commission, and, broadly, the federal government, though it’s still very early days. AEHI has funding in place for $70 million from an investment group, in this case Source Capital in Connecticut, which will help to pay for stuff like land and water rights, and the initial engineering studies and approval process … after which AEHI expects the land to become dramatically more valuable, thanks to those expected approvals and the completed studies, and they seem to believe they’ll be able to borrow against that land for the additional $8-10 billion required to actually build the reactor(s), which in the company’s scenario has them beginning construction in 2-1/2 years and turning on the lights in late 2017 (I’m no expert, but a given company’s plan is almost always a very optimistic one, especially given nuclear power projects).

And if I were them I’d raise a lot of money right now by selling stock now that it has tripled in two days … but that’s just me. Will it make you 200X your money? Well, Hodge’s subscribers have got to be awfully happy so far if they got in at 10-20 cents and held on for this week’s ride, though it almost always pays to be skeptical of a one day move of 400%.

I haven’t delved deeply into all of AEHI’s plans, and they may well become the first pure-play nuclear power generation company to build their own brand new modern-design plant over the coming decade … but as to whether the stock should be worth five cents or five dollars, the company seems still to be mostly a partially-funded idea at this point, so to me that’s all in the mind of the beholder.

So whadda you behold? Let us know with a comment below.

Oh, and I mentioned how much I love the P.S., so I should include one of my own here:

P.S. Unlike some investment newsletter publishers, the folks at Angel Publishing note in their disclaimer that their writers, editors and employees can own the stocks they write about, and trade them at any time — which would be a real motivation for them to pick penny stocks, since even with my much smaller readership I know that if I wished I could reliably bump a penny stock up by at least 5-10% by writing favorably about it and buy and sell shares to profit from those moves.

Of course that would be unethical, in my opinion … but it seems that it’s often perfectly legal as long as you disclose it — you can get away with a remarkable amount of chicanery as long as you tell people that you’re treating them badly.

Let me be clear that I don’t know if the Angel editors do this, but their disclaimers apparently allow it — the actual language in the ad I read was this: “The publisher, editors and consultants of Angel Publishing may actively trade in the investments discussed in this newsletter. They may have substantial positions in the securities recommended and may increase or decrease such positions without notice.”

I’d urge you to always read the disclaimers in the ads and newsletters you receive — folks like Stansberry and the Motley Fool, to name a couple, are very clear, according to the disclaimers Stansberry editors can’t own the stocks they write about, and Motley Fool editors and writers have to disclose ownership and can’t trade within a certain number of days of publishing a new piece about a company (that’s the same basic rule I follow, by the way, I disclose any conflict as I’m writing and don’t trade in any covered stocks for three days). And stock promoters who are simply advertising a stock, like the “Day Trading Robot” guys who constantly come up with new names and websites also disclose if they’ve been paid by someone to promote a stock — no one wants to be caught in the SEC’s crosshairs, and publishers know that most of us aren’t going to read their disclaimers, anyway.

On the flip side, some investors hate to follow investment writers who don’t have their “skin in the game” … I don’t mean to pick particularly on Angel Publishing at this point, but the thoughts happened to come to my mind when I read their ad. My main point is, however you feel about newsletters and promoters and their rights and responsibilities, please read the fine print.


-----------advertisement-------------
I don't endorse products or newsletters -- but there is one service that I really do use ...AND it's free. Nice, right?

It's Personal Capital -- they've got half a million people using it already, and I use it to understand all of my personal accounts, from mortgages to investments, and keep track of them and help me visualize how I'm diversifying and whether I'm meeting my financial goals. It's free, I think their free tools are great, and I think it's worth checking out -- you can do so here.

---------------------------------------------

Print this

Email This Email This

39 Responses to “Unauthorized Photo” and game-changing nuclear power in Idaho


  1. .Most interesting,like CAK.CAK now down by 13 cents from when I got it but no precipitious drop like BGBR,which was $1.50 & now is around 80 cents.AEHI seems to have its ducks in a row so far.Now at 80 cents,up from 20 cents.So what if it uses Korean reactors? That hasn't stopped other countries from using them.Most importantly,the politicians are for nuclear. I also,besides due diligence on their site & videos,checked their map location.They are in extreme western Idaho,off I-84,& up the road from Boise plus Ontario,Oregon is nearby.Might give them a try.So needed transportation to a godforsaken area is of no consequence.

    Like(0)

  2. Emost shares traded today were from .73 which was the open not .60. so it didn't move all that much. The ride was yerterday! I would watch tomorrow as this stock has now been teased by several newsletters. My advice is not to chase the stock up the ladder, as nothing is firm accept gossip of whats to come. Not to say it won't become something but just not now!!

    Like(0)

  3. Hey Travis, I love what you do. You have saved many small investors
    money and grief. Thanks for all you do!

    P.S. In the middle of the second paragraph, it is spelled ladder not latter.

    Like(0)

  4. Thank you for exposing this fraud committed by Angel Publishers and their Green Chip Stocks. What is the actually likelihood of the story that the author tells in the article that a multi-millionaire approached him at a conference and gave him a photo showing a deal being made with South Korea? The SEC should shut Green Chip Stocks down immediately. I just wrote a letter to them based on this story and will urge them to conduct an investigation.

    Like(0)

  5. Idaho is perhaps more friendly to nuke power than your average state due to the presence of the Idaho National Laboratory (INL), a largely nuclear installation and the site of the historic first breeder reactor (EBR-1), in the SE part of the state. The French nuclear company Areva also plans to build a nuclear fuel reprocessing plant near the eastern edge of the INL reservation. Payette county, where AEHI plans to build, is nearly as far from the INL as you can get and still be in Idaho, nevertheless the nuclear business in general is very influential at the state and county government level.

    I've no opinion about AEHI itself, except that I don't plan to buy it because I'm pretty much focused on income investing.

    Like(0)

  6. Good grief. Here's all you need to know about this company right here: "and they seem to believe they’ll be able to borrow against that land for the additional $8-10 billion required to actually build the reactor(s)," What bank is going to lend them that amount of money? The Federal Reserve? You would have to value the 5,000 acres of land at $1.6 Million per acre in order to come up with $8 Billion. Any land in Idaho worth $1.6 Million per acre?

    Like(0)

  7. EnteTTr text right here!Thanks for doing this one ,Travis! I am so gullible. after reading the tease; I could see myself retiring to the Bahamas. Well, i guess the oil spill would have screwed that up anyway. I think I am going to watch it, because I really l like biotechs better. I like the Angel people, at least , Ian Cooper. I guess I had gotten a tease about him being the best option trader. He seems pretty good to me. I subsrbed to his for a year, then signed up again.

    Like(0)

  8. This whole Angel Publishing story and AEHI are a joke.

    FIRST, THE "UNAUTHORIZED" PHOTO
    ——————————-

    Nick Hodge's cheesy cloak-and-dagger opening bit about the nameless "Hemingway" guy who came to a conference just to slip him a secret "unauthorized" photo begins, "I'd never seen him before, and I haven't seen him since." Note that Hodge sent his teaser email out on May 15, 2010. Well, here's the actual photo, in color no less, from a NuclearStreet.com story dated FOUR MONTHS EARLIER on Jan 12, 2010:
    http://nuclearstreet.com/blogs/nuclear_power_news

    How laughable is it then that Hodge's email has the subject line: "The Photo the Energy Industry Doesn't Want You to See"? Turns out…oops … the "unauthorized" photo was actually from one of AEHI's own PRESS RELEASES (dated 1/9/2010):
    http://www.alternateenergyholdings.com/LinkClick….

    Hodge had alledgedly been following AEHI and recommending it for months. But apparently not reading the company's press releases. Either that, or the whole cloak-and-dagger story is a fabrication for effect. So Hodge is either an incompetent analyst or a liar.

    But it gets better…

    THE KOREAN "DEAL"
    —————–

    The thrust of the story is that AEHI, a tiny company with no history of building reactors, has somehow magically scored "a hefty commission" on any APR1400 reactor sold in North America. AEHI does indeed trumpet something close to this in their amateurishly over-zealous press releases:

    "AEHI Expects to Close Deal to Import Korean Reactors in Early 2010"

    "Alternate Energy Holdings, Inc. (OTC: AEHI.PK)): Don Gillispie, AEHI's CEO, left today for Seoul to finalize negotiations with Korean Electric Power Company, KEPCO, to import the South Korean's advanced reactor, APR 1400, for its Idaho and Colorado sites. Don Gillispie noted, "We expect the agreement to be similar to the UAE agreement announced last week, such technology should give AEHI a serious competitive advantage.""

    (Source:http://www.alternateenergyholdings.com/LinkClick….

    First of all, NO company in their right mind issues press releases about what they expect to happen at a meeting that hasn't happened yet. Total amateur hour.

    But here's the BEST part… apparently KEPCO (the Korean firm that makes the reactors) was not amused. Four days later, this appeared in Korea Times:

    “We don’t see much likelihood of a deal,” a KEPCO spokeswoman told The Korea Times. “I’m afraid AEHI is going a bit too far in promoting it.”

    “The nuclear industry deals with massive projects and is sensitive to safety. If we are to strike a deal with a private company, we would want a more sizeable one,” she said.

    (Source:http://www.koreatimes.co.kr/www/news/biz/2010/01/

    Now, for what it's worth, I can imagine a scenario in which AEHI's apparent pull with Korean gov't officials and possible NASDAQ listing allow them to pull off the impossible. The Idahoans do seem to want a reactor and the federal gov't seems to be throwing the weight of bipartisan support behind nuclear power… so who knows? Investors may indeed make a fortune based on actual milestones being hit by AEHI or just lots of rumors, speculation, and momentum along the way. But from the behavior exhibited in just this sampling of company documents, the company seems unfit for being allowed to touch the controls of anything radioactive, and I wouldn't trust Nick Hodge with a paper route, let alone my stock portfolio.

    Like(0)

  9. you might be correct with everything you say. in fact, you make some very astute points. but at the end of the day I followed his advice, put in 5000 this week, and walked about with 10 000. and that's not a bad return for a week.

    Like(0)

  10. I got in AEHI because they bought out a company I had a few shares in (can’t remember the name). I was angry that I got 1000 or so shares split down to 124 shares for a buck each.
    I looked at the board members at the time and was surprised, even shocked at the Nuclear experience (ex-big shots) with one ex-NRC guy.
    As a pipefitter in the 80′s I worked 7 years in various Nukes. Based on that, even though I was pissed I bought 3000 shares at .18 cents. If they are a fraud so be it! ’cause I’m going to ride out this fraud until they are exposed or the Idaho cows come home!
    I am not hawking this stock – they are indeed an aggressive bunch and I couldn’t tell you if they are true or blue…

    Like(0)

  11. Darien – I have never heard of Nick Hodges. Your review of the recent details would lead most people to agree – "Don't Buy!"
    This company has recently applied for NRC approval for their Idaho site. The process usually take 4 – 5 years to gain approval just to begin construction – even with a fast track environment. There are other sites near the Idaho location that would be easier to fast track – simply because there are already existing NRC projects.
    To quote a famous and crazy American, this stock has "Don't Buy!" written all over it!

    Like(0)

  12. Travis, I don't think one of your tid bits has drawn such ire in recent months. As far as the prospective loan [Jeff], Obama would probably loan it to them. You know, spread the wealth around.

    Like(0)

  13. I have to agree with Darien. Although the price has dropped below38 cents,both their website & other stock sites have photos of them signing an agreement with CNNC(Cnina National Nuclear) & its subsidiary CZEC.to build & sell nuclear reactors to power desalinization plants thruout the world.The French are in on this also per the article.The photos appear to be genuine & the Chinese delegation is quite large.Evidently AEHI is involved in more than just one project in Idaho.I do wonder why the PRC joined with this little company rather than some of the worldwide giants?Their stock was temporarily moved off the OTCBB bbut is now back.Reason given was an admin /form error.I also don't think that the PRC would be dealing with a fraud or sting operation.Its still early so I'll just hang on & see how it goes.

    Like(0)

  14. So,lets see…so far AEHI has dealings with,& successful ones at that,with PRC,South Korea,Idaho,& Colorado.Not bad for a small capper

    Like(0)

  15. The first thing one must ask when buiding a new commercial nuclear plant is where are our customers?

    Let's face it – it's highly doubtful Idaho needs a 1400MW nuclear station. There is not a huge mass of people going without electricity and there probably is not going to be a noticable increase in the number of customers any time soon.

    Like(0)

  16. Is this for real……….

    DailyWealth Subscriber,

    editor Tom Dyson.

    The other day, he showed me a series of unusual ‘loopholes’ in the U.S. financial system. They could make you hundreds of dollars per week in extra retirement income.

    Angry Wall Street brokers have actually lobbied Congress to stop some of this information from getting out.
    Tom has written up an explanation below…

    Good investing,

    Steve Sjuggerud
    Editor, DailyWealth

    ———————————————————————

    A Secret Website
    Wall Street Doesn't Want
    Anyone Over Age 55
    Logging Onto

    Because it could help you collect as much as $653 in extra income every single week, for the rest of your life…

    Without going through brokers and money managers ever again!

    Like(0)

  17. Well currently $8-10 billion to build a nuke plant is optimistic maybe closer to $12-14 billion today and climbing. The on-line in 2017 for a greenfield site, they may be through the EPA (who is destroying this country) by then without turning a shovel of dirt. Finally the government money must be spent within 2 years, again how clueless the D.C. folks are on how things work.
    If they aren't a scam they might be worth a little Vegas money on a long horizon.
    l

    Like(0)

  18. Byron King is pushing Canadian company: Universal Power Corp (UPWRF) for the huge "oil kitchen" in Namibia right now in his ongoing teasers… Rocketing up nicely Already…

    Looks like new Deepwater Drilling around the USA & Gulf of Mexico is about to end fast! Someone somewhere will have to pick up the slack as the world, especially America, is at least for the next decades is unavoidably addicted to the LIFEBLOOD of A Global Economy… OIL. Zion Oil (ZN) is also an interesting company with prophetic implications.

    Like(0)

  19. How does one invest in the Korean firm, KEPCO? That is what seems to be the hands-down winner now and for a very long time to come.

    Like(0)

  20. Well, the teaser ads were still rolling in as of a few weeks ago and the company was still sending out self-congratulatory press releases as of a week ago — but the you-know-what has hit the fan for AEHI, with the SEC halting trading and accusing them of basically being a pump-and-dump operation that primarily exists to enrich their senior executives.

    I've only read the basic press release from the SEC at http://www.sec.gov/litigation/litreleases/2010/lr… , I'll be curious to see whether the Angel Publishing folks get accused of anything connected to this, since you might be able to call their teaser campaigns "stock promotion" and that's part of the "pump and dump" accusation (though far more clear are the stock promotions that AEHI directly paid for and that were disclosed, by folks like ShamrockStocks and Breakthroughstocks.net). It's also possible that the Angel folks got duped, suppose, or just saw it as a good story that could entice subscribers. In the last few months AEHI has clearly been paying stock promoters to get the word out (and the StreetSweeper folks say they were doing this heavily before as well, though I didn't happen to see those pump campaigns).

    The stock is halted this week, of course, and it seems unlikely to me that the work they claimed to have done so far is going to be worth anything to shareholders (if, indeed, they did do anything). Good coverage from the StreetSweeper folks on AEHI as well, as I noted for subscribers a couple months ago (the first in-depth article was here: http://www.thestreetsweeper.org/pennypincher.html

    Like(0)

  21. Travis – 30 weeks ago, I echoed your sentiment on AEHI with a "Don't Buy!" recommendation. At that time, it was noted that it takes 4-5 years for the NRC approval process prior to construction (IF the project is approved!). Hopefully, your efforts here prompted the authorities at the SEC to investigate. Those who did buy shares of this stock may very well have a tax write-off (in 2010?), and a lesson in doing their own research. If an investor had followed up on my posting and contacted the NRC, they would have found AEHI was not scheduled for construction. I attempted invite the CEO to a meeting of the American Nuclear Society in Richland, Washington (home of the Manhattan Project and several nuclear industry success stories, including the VIT plant under construction). Don Gillispie failed to return my phone call (I spoke with his secretary to extend an invitation for Gillispie to speak to our organization so that he could defend his project before industry professionals).
    Once again, your forum has been successful in guiding people to invest with as much information as possible — while also reminding folks of the risk inherent in small, unknown stocks listed on the "Pink Sheets."

    Like(0)

  22. I have been holding these shares since september 2010 whenit was at .77c and hit a high in the .85 to .87 range, in march 2011 it was .35 during the last few months it has bounced around between .04 and .12c closing today at .06. bottom line this stock was a pumped- up fraud probably when I bought and I’m not sure we are any closer to getting any large uptick back to be honest. well done Gumshoe to raise it again to remind the folks

    Like(0)

  23. Travis,
    Appreciate the article. But, his most recent tout specifically mentions a small gold-mining company that has huge reserves of gold plus some other rare strategic metal. His long video makes the case that the real money in gold is in start-up mining companies like his secret recommendation. Also, the tout is for something called “Like Minded People,” and is very recent. No reference whatever to anything to do with nuclear power. This is another company. Thanks in advance for any info.

    Like(0)

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

What These Icons Mean

  • The user who posted this comment is a Stock Gumshoe Premium Member (also known as an "IRREGULAR").
  • This user regularly writes articles for Stock Gumshoe. They may or may not be the author of the current article.
  • This user's comments have been "liked” by at least a few members of the Stock Gumshoe community.
  • This user has commented widely, with input that has been liked enough to earn a two-thumbs-up rating from other readers.
  • This is the highest rating a user can get. They are among the most respected commentors of our community.