Why Nano Nuclear Energy Stock Is Getting Hammered This Week

Nano Nuclear's reactor dreams hit a regulatory wall—and investors are fleeing faster than particles in a fission chain reaction.

THE FALLOUT ZONE

Another week, another nuclear energy stock getting crushed by reality. Nano Nuclear joins the radioactive club of speculative energy plays that promise revolutionary technology but deliver shareholder losses.

REGULATORY ROADBLOCKS

Permitting delays strike again. The company's micro-reactor designs face longer-than-expected approval timelines—because apparently regulators want to make sure miniature nuclear reactors won't create miniature Chernobyls.

INSTITUTIONAL COLD FEET

Big money pulled the plug after quarterly results showed R&D costs ballooning faster than a reactor core during meltdown. The smart money knows: nuclear timelines stretch longer than radioactive half-lives.

THE BOTTOM LINE

Another 'energy revolution' stock proving that in nuclear investing, the only thing that decays faster than uranium isotopes is shareholder value. At least crypto doesn't require federal permits to innovate.

Come and join

Before market open that day, Nano announced that its stock is now a component of not one, not two, but three equity indexes managed by. The trio is theindex (BMI), theindex (TMI), and theindex.

Image source: Getty Images.

These, however, are not as closely tracked and have less prominence than other equity gauges in the S&P family (most notably theindex).

At least Nano has plenty of company. In terms of composition, the BMI is certainly sprawling. As of the end of August, it has 14,782 component stocks, which are collectively headquartered in 48 countries around the globe.

The other indexes are notably smaller, at 3,360 for S&P Completion and 3,865 for TMI. The two are related -- S&P Completion has the same composition as TMI, except with the stocks also on the S&P 500 index stripped out.

The good old index effect

Nano's ascensions definitely represent an advancement for the next-generation nuclear company. However, many investors might be thinking they aren't enough of an advancement, since in prestige and visibility terms, the trio is under the level of closely monitored mainstays, again like the S&P 500 index.

Nevertheless, if it hasn't already been discovered and researched simply by its presence in the currently hot nuclear sector, Nano will soon go under the microscope by a host of index funds. After all, such vehicles are constantly on the hunt for good investments among a relatively limited pool of stocks.