Revealed: Nomi Prins “Operation Green Light” Stock (The Next Exxon)

Hello and welcome back to another stock reveal.

Today we're going to be looking at a teaser from Nomi Prins for her newsletter, Rogue Strategic Trader.

The headline of this teaser is "Operation Green Light."

In this presentation, Nomi claims, "The U.S. Government has just granted a $2 American firm a virtual monopoly over a $1 trillion energy subsector."

Nomi goes on to say this $2 American firm will be "The Next Exxon."

The problem is that she wants thousands of dollars to reveal the stock.

The good news is that she left enough clues to figure out the stock.

I reveal it below and give you information on the stock so you can determine if it's worth buying or not.

Also, she recommends another that has to do with Amazon—we'll reveal that one too!

Breaking Down Operatin Green Light

If you went through the entire "Operation Green Light" presentation, I'm sure you have some questions.

This section will answer all of those questions.

What is Operation Green Light?

So the headline of this presentation is "Operation Green Light."

This is a term Nomi uses when the government "green lights" a monopoly.

The government can do this by creating laws and regulations, or it can do this by funding certain companies.

In this case, the government is funding a project in Idaho for $1.2 billion, and Nomi believes this will give a "$2 American firm" a monopoly over a trillion-dollar energy sector.

The subsector that Nomi is talking about is nuclear.

But according to Nomi, we'll never see the traditional nuclear power plant again.

She gives many reasons for this, and the main ones are cost and the waste produced from them.

Instead, the monopoly will be on small modular reactors for nuclear power.

What is a Small Modular Reactor?

A small modular reactor (SMR) is a new type of nuclear fission reactor that is designed to be smaller, safer, and more efficient than traditional nuclear reactors.

One of the main benefits of these kinds of reactors is that they can be built in one location and shopped and operated at a different site.

This can be good during disasters like hurricanes and more.

Additionally, the reactors can generate about 1/3 of the power of a traditional nuclear reactor.

Other benefits include:

• Low-carbon electricity
• integrated with wind, solar, and hydro
• Enhanced safety features like passive cooling systems that don't require external power
• Underground siting protects against natural disasters.

And the flipside of some of the challenges these reactors face is that they can have higher operating and maintenance costs because of their smaller economies of scale and shorter fuel cycles.

Additionally, you never know what kind of regulatory and licensing hurdles they might face.

Recommended: The Best Place To Get Stock Picks

What is the $2 Firm Nomi is Talking About?

So far, we know the following clues about the mystery company Nomi is pitching:

We know it's a "$2 American firm," and we know they make small modular reactors.

Additionally, we know the government gave them money for a project in Idaho.

Nomi also leaves these clues in her presentation:

I was able to actually find this article and in the article it's revealed the company is NuScale Power:

NuScale Power is an Oregon-based company that makes small modular reactors, and the government just gave them $1.4 billion to build them in Idaho.

But if you look at the stock of this company, you'll see it's never gone under $6.

So what gives?

Well Nomi isn't recommending that you buy the stock of NuScale and is instead recommending warrants.

What are Warrants In NuScale?

A warrant acts a lot like options, but instead of being done from investor to investor, they're done from investor to company.

There are many reasons why a company might offer a warrant, including to raise capital, avoid bankruptcy, and rearrange shareholders.

NuScale is likely issuing warrants to raise capital.

Here's a detailed breakdown of how it works:

NuScale offers warrants in their company that cost $1.50 per warrant.

This represents one potential share you can redeem down the road.

So if you wanted to have 10,000 potential shares in NuScale, that would cost you $15,000.

Remember, though, that you don't own 10,000 shares yet.

You just own the possibility of getting 10,000 shares down the road.

In NuScale's case, you can redeem your warrants anytime NuScale's stock goes over $11.50.

This has to be done before February 28, 2028, and if it doesn't happen before that, the warrants expire and you lose your investment.

However, you wouldn't want to redeem your warrants until the stock gets over $13 because that's when you break even.

To make a lot of money (more than you would if you just bought the stock), you'd need the stock price to get to around $18 or more.

At that point, the warrants will pay more than if you had just bought the stock.

In addition to all of this, If the stock gets over $18 at any point past February 28th, 2025, for more than 20 trading days out of 30 days, NuScale can redeem the warrants.

So really, there's a ceiling to how much you can make, but there's no floor to how much you can lose.

Warrants require you to pay attention to the stock price pretty closely, and it requires extreme patience.

What is "The Tiny firm Saving Amazon"

Lastly, there's one more investment opportunity that Nomi is hinting at in her presentation.

Nomi actually ran an entire presentation about this investment recommendation earlier this year.

I wrote about it, and you can read it here.

"The Tiny Firm Saving Amazon" is Lion Electric, and Nomi is recommending buying warrants in this company as well.

Lion Electric has a deal with Amazon to create electric delivery vehicles.

However, this has not been a good investment.

I'm actually surprised to still see Nomi recommending warrants.

The warrants are down about 90% in the last year, and they've lost about 60% of their value since Nomi started recommending them.

There seems to be no sign of them recovering either, and the price just keeps dropping.

Maybe this makes them a better value now compared to last year.

But at this point, it might just be smarter to buy the stock instead of the warrants.

It seems less and less likely this stock will hit a price where your return would be better with warrants compared to just buying the stock.

Recommended: The Best Place To Get Stock Picks

Wrapping Things Up

That's the end of my post detailing Nomi Prins' "Operation Green Light."

Honestly, I don't think too highly of Nomi Prins.

I've covered her stock picks for the last year, and every single one of them has turned out really badly.

Definitely don't join any of her services.

The good news is that there are stock-picking services that are worth it.

To see my favorite (which is very affordable), click below: