Nomi Prins’ “$2 Nuclear Firm” (aka “Next Exxon”) Stock Revealed

Nomi Prins is teasing a “$2 American firm” that she claims has been given the “green light” by the U.S. Government, handing it a “virtual monopoly” on a $1 trillion energy subsector.

And she later reveals she’s referring to the nuclear energy sector.

“The U.S. Government has just given the ‘green light’ to one tiny American company…

“Handing it a virtual monopoly over a $1 trillion energy subsector.”

[…]

“It essentially just got the ‘green light’ to dominate the $1 trillion nuclear energy sector.”

Source: https://web.archive.org/web/20230816023335/https://secure.rogueeconomics.com/?cid=MKT748871&eid=MKT757702&assetId=AST307449&page=2

As you may know, the only way to find out what her stock pick is is to join the newsletter she’s teasing, Strategic Trader, for $1,750. Because if you do that, you’ll get a copy of the report she put together detailing her pick called “The Next Exxon.”

I didn’t join her service, but I did look into her clues and think I know what she’s teasing. So let’s break down Nomi Prins’ prediction and discuss her stock pick.

Unpacking Nomi Prins’ “Green Light” Stock Teaser

Nomi Prins is an economist turned stock picker that positions herself as somewhat of a political “insider.” And that’s how she claims to have found this opportunity… based on insight she gained through one of her unnamed “political contacts.”

“This opportunity came to me based on the insight I got from meetings in Washington D.C…

“Though one of my political contacts on Capitol Hill.”

According to Prins, the company she’s teasing has “solved the biggest headache our political elites are facing today,” which has to do with energy production.

Long story short, Prins talked about how the U.S. is transitioning away from fossil fuels (aka “dirty energy”) and into renewables like solar and wind (aka “clean energy”). And she says this has led to a “surge in demand” for electricity (from EVs) and increased blackouts.

“The surge in demand is already causing a major strain on the electric grid…

“And rolling blackouts for millions of residents.”

The solution, according to Prins, is nuclear energy.

More specifically, she paints the “$2 firm” she’s teasing as the answer, which she says has been given the “green light,” handing it a “virtual monopoly” on nuclear energy in the U.S.

“That’s why Washington is turning to an energy source that has been considered ‘taboo’ for decades…

“And it’s the reason why this tiny $2 firm just received the ‘green light’…

“Handing it control over an entire $1 trillion energy subsector.”

What “green light” is she talking about?

The whole “green light” thing is essentially a marketing gimmick used to sell more newsletter subscriptions. So take it with a pinch of salt. But according to Prins, when a company gets this so-called “green light,” it can essentially run an entire market subsector.

In this case, the nuclear energy sector.

“When a firm has received the ‘green light’ to essentially run an entire market subsector…

“It’s much easier for it to make money – in any kind of market.

“It’s as close to a ‘sure thing’ as it gets.”

As for why this company was supposedly given this “green light” in the first place, Prins says it relates to its new Generation IV reactor design, which she claims was “backed” by the U.S. Department of Energy to the tune of $1.4 billion.

“… that’s what’s so exciting about this $2 American firm.

“Its team… including a team of brilliant scientists…. has come up with a revolutionary, patented new reactor design…

“It’s giving our politicians an easy out from this mess…

“And they’re more than happy to take it!

“That’s why this $2 firm has just received the ‘green light.’

“Instead of having one massive, unsightly reactor… with tons of radioactive material concentrated…

“They string together 6 smaller nuclear reactors…”

[…]

“They call it a ‘Generation IV’ reactor.

“And here’s why I believe this tiny $2 nuclear firm could be by far the biggest profit opportunity for 2023.

“The U.S. Department of Energy has already backed their patented Generation IV reactor design with $1.4 billion.”

Furthermore, Prins says the company she’s teasing is the “only one in America” that has received the “green light” for its reactor design by the U.S. Nuclear Regulatory Commission.

“This tiny $2 firm is currently the only one in America that has received the ‘green light’ for its revolutionary reactor design by the U.S. Nuclear Regulatory Commission.”

So, to sum it up… Nomi Prins believes that nuclear energy is the solution to the “green” transition and that one company that makes small modular reactors in the U.S. is more or less front and center of the action.

And with that, let’s see what company she’s teasing!

What “$2 Nuclear Firm” (aka “Next Exxon”) Stock Is Nomi Prins Teasing?

So far, we know that Prins is teasing a U.S. company in the nuclear energy space that she (by way of the name of her research report) suggests could be the “next Exxon.”

She also hinted that the company was trading for around $2 a share at the time of the pitch, but as I’ll explain shortly, there’s a plot twist on that specific hint.

What else do we know?

According to the clue I shared earlier, we know that the U.S. Department of Energy has “backed” the company’s Generation IV reactor design with $1.4 billion.

“And here’s why I believe this tiny $2 nuclear firm could be by far the biggest profit opportunity for 2023.

“The U.S. Department of Energy has already backed their patented Generation IV reactor design with $1.4 billion.”

And that was the clue that led me to her pick, which I believe is Nuscale Power Corp (SMR), an Oregan-based company that designs and markets small modular reactors.

Why? Because according to this article on energy.gov, the DOE approved a “multi-year cost share award” to an entity named Carbon Free Power Project (CFFP) that could “provide up to $1.4 billion to help demonstrate and deploy a 12-module NuScale power plant.”

The keyword there being “NuScale power plant.”

And according to the CFFP website, NuScale Power’s small modular reactor plant will be the first to begin operation in the U.S. in Idaho.

Furthermore, Prins shared a screenshot of this article on energy.gov, which talks about how NuScale’s “power module” was the first SMR design certified by the NRC (U.S. Nuclear Regulatory Commission).

So, based on my research, I’m as confident as I can be that the company Prins is referring to here is NuScale Power. But… there’s one thing that doesn’t quite line up.

As of writing, the company is trading at almost $7 a share (not $2):

Prins’ “$2 firm” clue threw me off when I saw the above NuScale chart. But given how closely all those hints lined up, I knew that NuScale had to be a match, which meant I was missing something. And that “something” was this final clue toward the end of the pitch:

“Despite everything I showed you today – I do NOT recommend you invest in this company in the traditional way.

“Yes, I’m pounding the table about this $2 firm.

“But I do NOT recommend buying shares in this company.”

When I saw that, I knew she must’ve been recommending some alternative investment (like options or stock warrants). And sure enough… we have the final piece of the puzzle:

“Please, do NOT run out and buy the stock!

“That’s not what I recommend.

“I’m recommending a special investment called warrants.”

As of writing, NuScale stock warrants are trading for $1.29 a pop, and they were closer to the $2 mark in July 2023, which is the month the teaser was released.

What on earth is a stock warrant?

I’m not an expert on warrant investing, but I have come across this before when looking into other stock teasers. And as Investopedia explains, stock warrants give investors the right to purchase a company’s stock at a specific price and date.

In that way, they are similar to options, but there are some key differences, like how warrants are issued directly by the company to the investor.

Anyways, I’m not going to get into the weeds on stock warrants, as that’s outside my area of expertise. But that’s what Prins appears to be teasing – NuScale Power stock warrants.

And as for whether or not that’s a good idea, I don’t provide financial advice on this blog (or anywhere for that matter), so I will leave that to you to decide.

However, I will say that, as with any investment, there are risks involved. So you should do your own due diligence before rushing into anything.

And there are a specific set of risks associated with things like warrants and options that make them different from regular stocks that you will likely want to be aware of.

In any case, Nomi Prins details her recommendation in her research report, The Next Exxon, which comes with a $1,795 subscription to her Strategic Trader service. So that is the best way to find out the details of what she’s recommending.

And if you want to learn more about the company without joining her service, I found this article on Seeking Alpha about the company that you might find helpful.

Bottom Line

Nomi Prins has published some interesting presentations in recent years, some of which I’ve written about on this blog. And she seems to have made some decent calls in her time.

But she doesn’t have a crystal ball.

As I learned after joining her flagship newsletter, Distortion Report (you can see my review of it here), she has recommended her share of duds as well.

My point? Take the presentation with a pinch of salt. It’s easy to get excited about presentations like this, but at the end of the day, there are so many variables to consider when it comes to investing that it’s impossible to pick a “sure thing.”

Anyways, that’s my take.

Hope you found it helpful. And as always, feel free to chime in below if you want to share your thoughts on all of this. Thanks for reading!