Oklo A Good Energy Stock

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Oklo A Good Energy Stock

Is Oklo A Good Energy Stock?

Nuclear technology is going through a renaissance period right now. A lot of countries are now trying to expand into nuclear energy or to upgrade their nuclear infrastructure.

The increased power demand from the AI also continues to rise. That's an issue that nuclear energy can easily solve.

Oklo Makes SMRs

One particular technology which is at the forefront of nuclear energy is SMR. These are small modular reactors which only take up a small space but can generate a lot of energy.

Oklo is the pioneer of the SMR technology, and this also makes it a great option for those looking into energy stocks.

Even among the SMR companies, Oklo holds a unique position because of its technology. Oklo uses liquid sodium as a coolant in its SMR instead of pressurized water.

But the fine print is that SMRs are not as proven as the water-cooled reactors. Also, liquid metal can cause corrosion of the components and increase the construction costs. And the liquid sodium is also more volatile than water.

One of the SMRs made by Oklo is called Aurora. It can generate 75 MW of energy, and the US government has also shown interest in it.

The only catch is that Oklo is not profitable, as they generate no revenue. In fact, it will stay like that for the next few years. So until the Aurora reactor becomes operational, the company will have to depend on the investors.

But this is not as bad as it seems, as the debt-to-equity ratio of Oklo is 0, and it has a positive balance sheet. And last year, the Oklo stock gained 540% from May to October.

So, for the investors who are willing to invest in a new technology and are not afraid of some risks, the Oklo stock is a very good option.

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