Alternate Energy Holdings Inc. (PINK:AEHI) stock has bounced up an important support level as the company announced the date for the first of the final hearings with the Payette County Planning and Zoning Commissioners.The stock price, previously inflated through promotions and various non-material news, was barely holding the line before this announcement. The stock recovered 22% on Tuesday on improved trading volume.
Articles criticizing Alternate Energy’s plans to build nuclear power plant in Payette County, Idaho are becoming more popular with the approaching hearing for the local approval, which should take place on December 2, 2010.[BANNER]
One of the strongest arguments against the success of their plans is the failure of a significantly stronger player in the energy business. Constellation Energy (NYSE:CEG) failed to receive a government-backed loan after the company refused to pay a large upfront fee requested by the Energy Department. With its lack of funds, Alternate Energy looks much riskier, and thus its chances to receive the Federal loan guarantees are considerably lower.
This doesn’t stop traders from playing the stock short-term. However, with all the contra arguments that Alternate’s CEO fails to properly address in his public statements, the stock doesn’t look like a good long-term investment.
