NEW YORK (TheStreet) -- Shares of Lightbridge Corp. (LTBR) - Get Report are higher by 4.87% to $1.07 on Monday morning, after the nuclear fuel technology company announced it was awarded an export license for planned work in the Halden Research Reactor in Norway.
The award of the Norwegian export license follows a July 2015 agreement, in which Lightbridge and the Institute for Energy Technology (IFE), which operates the Halden Research Reactor, entered into an agreement for irradiation testing of the company's nuclear fuel samples in IFE's Halden research reactor.
"This export approval, along with a release of initial task and purchase orders with CNL and IFE, illustrate our rapid progress toward lead test assembly demonstration of our advanced metallic nuclear fuel in a commercial power reactor. We are pleased to have this export approval secured by our Norwegian partners, and remain fully committed to the start of full-scale lead test assembly demonstration in a commercial reactor in the 2020 to 2021 time frame," Lightbridge CEO Seth Grae said in a statement.
Separately, TheStreet Ratings team rates LIGHTBRIDGE CORP as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
We rate LIGHTBRIDGE CORP (LTBR) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for LIGHTBRIDGE CORP is currently extremely low, coming in at 7.38%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -496.97% is significantly below that of the industry average.
- LTBR's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 41.81%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Professional Services industry and the overall market, LIGHTBRIDGE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- LTBR, with its decline in revenue, underperformed when compared the industry average of 3.2%. Since the same quarter one year prior, revenues fell by 14.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- LTBR has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 6.51, which clearly demonstrates the ability to cover short-term cash needs.
- You can view the full analysis from the report here: LTBR