NuScale: Improvements, But The $13B Market Cap Is Not Justified

Manuel Paul Dipold
2.41K Followers

Summary

  • NuScale achieved NRC approval for its 77 MW SMR design, securing a first-mover advantage and fueling a sharp share price rally.
  • Despite approval, risks remain: no finalized customer orders, first deployment not expected until 2030, and future profitability is uncertain.
  • The company’s cash position has improved, but significant share dilution and insider selling remain.
  • While I’m optimistic about nuclear’s future, NuScale’s high valuation and unresolved risks still keep me cautious.

concept of a SMR small modular nuclear reactor power plant on a sunny day. SMR is a future energy concept. 3d rendering.

audioundwerbung/iStock via Getty Images

Investment Thesis

NuScale (NYSE:SMR) definitely made progress in the last year, but still, it's not an investment for me. The revenue will likely stay low in the foreseeable future; it is not an easily scalable business, and in general, we

This article was written by

2.41K Followers
My focus is on a total return style with long and short positions (10-30% short positions). My main expertise is the current technological and geopolitical shift with the amazing investment opportunities they offer. Therefore, I always try to find stocks or whole sectors with favorable risk-reward structures. My long investment style is a core-satellite strategy: The core consists of large caps and/or ETFs. The satellites around this core are small caps, potential 10-baggers, and undervalued stocks. In short selling, I focus on overvalued stocks that will fall back down sooner or later. My name is Manuel Paul Dipold. Born in Germany but lived 8 years in Asia. I am myself an entrepreneur and have many entrepreneur friends. I am not a professional investor but it´s a hobby I love. So I know Europe and Asia very well and seek undervalued or high-growth stocks - always with valuation, geopolitical and social shifts in mind.

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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