Jim Cramer Says "Some of My Newfound Cynicism With Nukes Comes From the Tale of Fermi"

Fermi Inc. (NASDAQ:FRMI) is one of the stocks Jim Cramer recently discussed. Cramer called the company “more of a business plan than an actual business,” as he remarked:

“Some of my newfound cynicism with nukes comes from the tale of Fermi, this company, which is more of a business plan than an actual business, came public on October 1st at 21 bucks, raising $682 million and had a valuation of more than $19 billion at the end of its first trading day. Fermi was just a business plan, though… Their plan is to deliver 11 gigawatts of power by 2038 through something called Project Matador. This is a proposed hybrid power system with nuclear, natural gas, and solar in Amarillo, Texas.

But it’s the nukes that caught everyone’s attention, especially because Fermi was founded by President Trump’s first-term energy secretary, Rick Perry. Now, Matador’s lead tenant pulled out last week. Oh man. The stock has lost 44% of its value over the past two trading sessions, brutal, full of sound and fury, signifying… nothing but the end of the year of magical investing. Look, I’m not saying that all nuclear-related stocks will turn out to be as terrible as Fermi, but they’re trading based on what might happen in 10 to 15 years, maybe 20. So if you haven’t taken profits on these things, it’s not too late to ring your register.”

Fermi Inc. (NASDAQ:FRMI) is developing large-scale next-generation electric grids designed to power advanced artificial intelligence. The company’s planned campus will integrate nuclear, natural gas, solar, battery storage, and utility power to deliver highly redundant gigawatt-scale energy.

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Disclosure: None. This article is originally published at Insider Monkey.