Stop Loss Trigger Alert: Oklo Inc. (NYSE: OKLO)
4th September 2024 |
Sadly, we’ve been stopped out of Oklo Inc. (NYSE: OKLO) after the stock crossed below $6, meaning it will now be sold from our model portfolio.
As you’ll recall, Oklo is the nuclear power startup backed by OpenAI head Sam Altman. It’s developing scalable nuclear power plants ranging from 15 MWe to 50 MWe based on liquid metal reactor technology that can run on both fresh and recycled fuel.
Nuclear and uranium stocks have been volatile in recent weeks, and Oklo has certainly been on the front-line of a recent shift in market sentiment.
Developers of small modular reactor technology such as Oklo are still trying to prove that their technologies provide value for money and battling to convince naysayers that they can generate electricity at affordable prices.
Licensing and fuel supply also remain potential bottlenecks for Oklo, like for other developers of first-of-a-kind reactors.
This is a shame as almost everything else at the company is pointing in the right direction as it pushes towards its target of building its first SMR by 2027 at the Idaho National Laboratory (INL). It has received non-binding interest for the construction of over 50 reactors, totalling more than 700 MWe of capacity.
Earlier this month, Oklo entered a preferred supplier agreement with Germany’s Siemens Energy to provide power conversion systems for its Aurora powerhouse at the INL – a significant milestone that enhances the case for Oklo’s production scalability, cost efficiency and deployment prospects.
Oklo has also entered into an agreement with the Southern Ohio Diversification Initiative at the DOE Piketon Site to establish its second and third commercial plants, while, in May, it agreed to supply data centres being developed by Wyoming Hyperscale with 100 MW of power for the next 20 years.
In April, Oklo signed another non-binding LOI with Diamondback Energy to collaborate on a separate 20-year PPA to provide power for shale-oil operations in the Permian Basin.
The company says more deals are in the pipeline and it has “tremendous uptake of customer interest”.
Of course, the status of future nuclear power supplies is highly changeable and remains uncertain. Oklo’s Aurora powerhouse project still needs to gain approval from federal regulators, though Oklo says it remains confident it is on track to first deploy energy in 2027.
With such an exciting future potentially ahead of it, Oklo is a stock we may very well look at again, but for now it’s time to exit the position at our stop loss of $6.
Action to take: SELL Oklo Inc.
Ticker: NYSE: OKLO
Sell price: $6
Entry price: $10.65
% gain/loss: -43.66%
Until next time,
James Allen and Sam Volkering
Editors, Southbank Growth Advantage
