NuScale Power Corp (SMR)

[H2R]

Interesting bearish article on SA

I disagree with most of the article.
For example:

The company is still a year away from real clarity about its UAMPS project, and it is anyone’s guess what the Polish and Romanian interests mean.

That's the opposite of the commitment UAMPS and RoPower made with NuScale .

Another example:

One of the issues that I have with nuclear industry advocates, and this includes SMR companies, is that there is constant reference to the “fact” that decarbonization cannot be effectively completed without a major expansion of nuclear technology

Meaning, the SA author does not believe there is a push to Nuclear. The author sees the push towards solar and wind as negating nuclear initiative. I disagree strongly. From Germany (yes, Germany) to Sweden, from France to Japan (yep, Japan), developing Nuclear is part of the energy plans. I wonder where the author got that notion that pursuing renewable means diverting away from nuclear.

The upstream material cost increase is real and it's something the company is looking into. That and the fact that those cost may fall back to their pre-pandemic levels. China is abandoning its zero Covid policy. The war in Ukraine is still a major geopolitical situation and the timing of the cost fallback will depend on the resolution too. I will be keeping an eye on that aspect, which is not to be ignored.

However, I do not foresee a slowdown in Nuclear worldwide initiatives and NuScale is well positioned in that tidal motion This investment is not for day traders, the horizon is a few years out, with milestones along the way to guide the PPS.

I'll probably keep on adding on a regular basis, especially during PPS drops, provided of course the news keep showing progress.

I've appreciated the clarity of the earning calls and the planning and reaching of their goals along the way. NuScale is a solid company.

Best of luck with your investments!