NuScale Power Corporation (SMR 4.44%) stock jumped 5.1% through 12:30 p.m. ET on Monday on some positive news out of Italy.
Italy currently has no operational nuclear power plants, having shut down its last operational reactor in 1990. But that could soon change. This morning, Italy took a step toward restarting its nuclear program.
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Italy nuclear news
Italy's council of ministers just introduced a bill to parliament that would authorize the Italian government to "reintroduce" nuclear energy to the economy, laying out "a national programme for sustainable nuclear power" and setting up an independent authority to oversee it, the Agenzia Nova news agency reports.
Admittedly, there's a long way to go from bill to law to nuclear industry. But getting the bill before parliament is the first step. And according to Agenzia, the new bill aims to create "use of the best available technologies, including modular and advanced ones."
Modular. As in "small modular reactors" -- SMR -- which not coincidentally is NuScale's ticker symbol.
Is NuScale stock a buy?
This seems to be the catalyst driving NuScale stock (and other nuclear power stocks, too, as well as miners of uranium) higher today. It's potentially good news for NuScale, too, although not certainly so. It's one of a few companies developing "modular and advanced" nuclear reactors, so there's no guarantee Italy's new policy -- if it ever becomes law -- will end up benefiting NuScale stock and not someone else.
Meanwhile, NuScale's losing $124 million a year, burning $95 million in cash annually, and still not expected to earn its first profit before 2030 at the earliest. Be careful investing in this one, folks.
NuScale stock is anything but a sure thing.
