Another interesting article on ASP Isotopes
https://investingwhisperer.com/a-triple-meme-story-small-nuclear-uranium-ai-asp-isotopes-aspi-nasdaq/Interesting to contemplate the conclusions:
WHAT ABOUT SILEX AS COMPETITOR?
ASPI is not the only company that is trying to enrich uranium with lasers. Silex Systems (SLX – ASX)is a pioneer in laser enrichment. This is another company we have written about in the past (here).
Silex is working closely with Global Laser Enrichment (GLE), a joint venture between Silex and Cameco, a major Canadian uranium producer. GLE aims to commercialize the SILEX technology for uranium enrichment in the United States.
Silex has proven that their enrichment works at demonstration scale, but it’s unproven at the commercial level.
ASPI’s twist on the process is that they use quantum mechanics to tune the laser and identify the isotopes to hit with it. But how exactly it differs from what Silex is doing is not something I have been able to understand.
What I can say is that the fundamental difference appears to be how APSI deals with a solid material that is vaporized within the process, as opposed to starting with a gaseous form of the atoms, which is required by both Silex and by the centrifuges.
This removal of steps (gasifying the uranium) should work in ASPI’s favor.
I will also point out that Silex says that the SILEX technology is “the only third-generation laser-based uranium enrichment technology known to be in the advanced stages of commercial development today”. Which seems to be at odds with ASPI.
KNOW WHAT YOU OWN!
I STILL HAVE LOTS OF QUESTIONS
Which brings us to reasons to be wary. There are several of them:
- How ASPI bought the technology so cheaply (according to their filings, in 2022 ASPI paid about $400K to Klydon for the license to the technology, and Klydon had spent 20+ years on it before that!)?
- How much weight we should put on the fact that CEO Paul Mann was the former CFO of PolarityTE – a stock that had its share of controversy, including accusations of fraud from Citron and an eventual bankruptcy. Mann did come in after the fraud accusations, so why doesn’t Mann include this experience on his Linkedin profile?
- Why an officer and chief scientific advisor appear to have exchanged 3M shares of their common stock in return for direct ownership in the subsidiary that will be making the medical isotopes?
On top of that, it is VERY hard to understand the product. How their quantum enrichment process works, especially how it differs from Silex (which has been working on quantum enrichment for several decades and now appears to be behind ASPI in their efforts?) is something I tried to figure out, but quite honestly can’t.
Part of that answer could be that if ASPI has discovered a secret sauce, they certainly aren’t going to give us the recipe. But regardless, as an investor you must be okay investing in a somewhat fuzzy picture.
There is also the fact that SMR’s are just a twinkle in our eye. Apart from maybe one that has been built in Russia (I think?), they are YEARS away from operating at scale.
None of this means that ASPI can’t eventually be a successful business. These are all just questions to consider.
What is important is to recognize that for the moment, the stock is moving on the hype.
Which is what this market is about right now.
You gotta know what you own. In a uranium bull market like this, I think the stock is going higher. But I own it because of the market we are in, not because of a fundamental reason about the business.
I’m not going to gloss over it – there are unanswered questions here. I’m just not sure any of them matter for a trade like this.
Keith Schaefer
(20min delay)