NuScale Power: Cash Burn, Dilution And Insider Selling

George Theodosi
536 Followers

Summary

  • NuScale is a Small-Modular Reactor designer, which is expected to see significant growth in the years ahead but competes in a crowded field of new and developing SMR technologies.
  • Sell-side analysts expect rapid YoY revenue growth, which assumes the RoPower Project progresses and/or more contract wins with new customers.
  • With 20% short interest, positive project announcements could trigger a short squeeze, but I recommend selling due to financial instability and ongoing dilution risks (20% dilution already past 12 month).

Nuclear Reactor

XH4D

Introduction and Background

NuScale (NYSE:SMR) is an overhyped but well-timed 2022 SPAC which raised $380m from a $1.9bn valuation at the time. On a fully dilutive basis, the company trades around $1.85bn (Market cap) currently with shares priced around $7.59. The company designs “NuScale Power Modules” which are

This article was written by

536 Followers
I'm an IMC qualified contributor who's followed financial markets for 5 years and has worked professionally in primary investment research for over 2 years. I'm a generalist who enjoys researching businesses from a buttom's up angle with a deep interest in smaller under covered companies where there is greater opportunity for mis-pricing and finding asymmetric opportunities where the downside is limited.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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