- fluor knows the total cost and risks to get to market at smr survivable scale
- fluor knows its tech may be good but not overwhelmingly superior to the dozens of global alternatives
when one considers the regulatory hurdles, and favoritism to okla and whoever may be opportunistic for trump&friends, it seems greatly sensible to exit ASAP w/tolerable shareprice down pressure.
Bought the dip in FLR at 38.50 earlier and have written covered call 3x. Picked up $7.50 extra. Nice write up but not sure if the $22 for SMR will hold.
We'll see, but what's interesting is that after the Q2 selloff, the market shaved FLR by $10/share, or $1.6B in market cap because it couldn't "strategically sell" SMR in one fell swoop. 111M SMR shares at $44/share then vs. $22/share today is a $2.4B difference. Even if they sold it at $22/share today and repurchasing FLR shares at $42, it's pretty close to selling SMR at near $40s (i.e., the decline in FLR makes up for the difference).
let's take some modest assumptions :
- fluor knows the likely value of its smr stake
- fluor knows the total cost and risks to get to market at smr survivable scale
- fluor knows its tech may be good but not overwhelmingly superior to the dozens of global alternatives
when one considers the regulatory hurdles, and favoritism to okla and whoever may be opportunistic for trump&friends, it seems greatly sensible to exit ASAP w/tolerable shareprice down pressure.
Bought the dip in FLR at 38.50 earlier and have written covered call 3x. Picked up $7.50 extra. Nice write up but not sure if the $22 for SMR will hold.
We'll see, but what's interesting is that after the Q2 selloff, the market shaved FLR by $10/share, or $1.6B in market cap because it couldn't "strategically sell" SMR in one fell swoop. 111M SMR shares at $44/share then vs. $22/share today is a $2.4B difference. Even if they sold it at $22/share today and repurchasing FLR shares at $42, it's pretty close to selling SMR at near $40s (i.e., the decline in FLR makes up for the difference).