NuScale Power Trades Below $10. Bargain or Value Trap?
NuScale Power has irons in the fire, but it is still in the very early stages of its development as a business.
Overview
Over the past three years, shares of NuScale Power (NYSE: SMR) have risen as high as $52 and been as low as $2. As of this writing, they are trading around $8.75, well below $10. That's a lot of price volatility in a very short period of time. With the stock so far off its highs, however, is now a good time to buy it? It depends.
NuScale Power is an upstart in the nuclear power industry. It is attempting to build a business around small modular nuclear reactors (SMRs). The plan is to build SMRs in a factory setting, allowing the company to benefit from an assembly line approach to keep costs low, speed up production, and ensure consistent product quality. Once built, the relatively small reactors could be transported to where they are needed, including stringing reactors together to create a larger power plant. In theory, this is an attractive idea.
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Originally published at www.fool.com.