NEW YORK (TheStreet) -- Shares of Lightbridge (LTBR) were spiking 79.1% to $2.49 on heavy trading volume Monday after the company announced that four U.S. electric utility companies asked the U.S. Nuclear Regulatory Commission to review its patented metallic fuel design.
The electric utilities cited the fuel product's opportunity to "significantly improve safety and fuel cycle economics" of nuclear power plants in the requests, according to Lightbridge.
The company expects to submit an application to the NRC in 2017 for use of Lightbridge fuel lead test assemblies in an "operating U.S. pressurized water reactor as early as 2020."
"Lightbridge is developing the first truly next generation commercial fuel design that can provide significant fuel performance and economic benefits to nuclear utilities," President and CEO Seth Grae said. "This expression of interest by major U.S. utilities is the strongest endorsement to date of Lightbridge fuel by potential customers."
About 3 million shares of Lightbridge were traded by about 9:50 a.m. Monday, well above the company's average trading volume of about 47,000 shares a day.
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 some concerns, 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 weak operating cash flow and generally disappointing historical performance in the stock itself."