We got here throughout a bearish thesis on NANO Nuclear Power Inc. (NNE) on wallstreetbets Subreddit Web page by Younger-faithful. On this article, we’ll summarize the bears’ thesis on NNE. NANO Nuclear Power Inc. (NNE)’s share was buying and selling at $22.75 as of April 30th.
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NANO Nuclear Power (NNE), based in 2022, is a nascent nuclear startup with ambitions to develop the world’s first transportable nuclear reactor whereas additionally aiming to be a totally vertically built-in participant within the sector—dealing with all the pieces from reactor design and gasoline enrichment to move and consulting. Regardless of being at a particularly early stage, the corporate has seen a meteoric rise since its IPO in Might 2024, the place shares debuted at round $4 and surged over 1000% at their peak, settling round a $1.1 billion market cap. Nonetheless, NNE’s fundamentals inform a special story. On the time of its IPO, the corporate had no patents, no working prototypes, no clear regulatory progress, and solely a loosely shaped technical crew. The founder lacks expertise in nuclear power, beforehand being concerned in inconsequential mining ventures, although the CEO does deliver credibility with a background within the UK’s Ministry of Defence and Rolls-Royce nuclear packages.
The state of affairs drew criticism from Hunterbrook Media, a short-selling agency that spotlighted these points in 2023. Though the inventory initially dropped in response, it rebounded after NNE retained a high-profile legal professional and took a litigious stance. Since then, the corporate has tried to reinforce its legitimacy by buying third-party patents, hiring PhDs and advisors, coming into non-binding agreements for future collaboration, and searching for analysis grants. But, the timing of those strikes has raised issues that NNE prioritized going public over constructing a reputable enterprise basis. In comparison with OKLO, a nuclear startup that has spent over a decade navigating the technical and regulatory pathways and is simply value 3.5 instances NNE’s valuation, the distinction is stark.
Posts on technical boards like r/nuclear stay skeptical, criticizing NNE’s unrealistic timelines and lack of demonstrated progress. Regardless of these issues, the inventory advantages from its eligibility in clear power ETFs, which has helped institutional possession attain round 30%, with the remaining probably dominated by retail buyers. Many within the retail crowd, particularly these aware of corporations like OKLO and SMR, could have purchased into NNE with out realizing how nascent it’s compared. In essence, NNE is an organization whose present valuation appears pushed extra by hype and optics than by substance or execution.