NuScale Power Corp. (SMR) saw its shares plummet 5.05% on Wednesday during the intraday trading session, as concerns mounted over the company's lack of transparency regarding its financial projections and the high short interest in the stock.
A recent article on Seeking Alpha highlighted several red flags surrounding NuScale Power's operations. The company's investor presentation lacks concrete calculations or estimates on potential revenues, margins, or profitability, leaving investors in the dark about its economic viability. Furthermore, the short interest in the stock currently stands at a high 23%, suggesting a significant portion of investors are betting against the company.
The article also raised questions about the company's claim of being the "sole small modular reactor (SMR) technology certified by the U.S. Nuclear Regulatory Commission (NRC)." According to the report, NuScale's updated 77MW reactor design has not yet received full certification, and the approval process could take several years. Additionally, the company has seen significant share dilution, with outstanding shares increasing by nearly 30% in the last 12 months, potentially diluting existing shareholders.
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