Centrus Energy Corporation (NYSE:LEU)

CAPS Rating: 1 out of 5

A global energy company that supplies low enriched uranium for commercial nuclear power plants.


Player Avatar rnaman (< 20) Submitted: 10/29/2007 6:10:03 AM : Underperform Start Price: $2,252.72 LEU Score: +129.22

Totally dependent upon others for uranium, has no assets itself and therefore won't benefit from the coming long-term surge in uranium prices. Technology in liquid fluoride reactors is likely to become obsolete within 2-3 years.

Member Avatar vanguardtrader (81.99) Submitted: 12/31/2011 12:54:51 PM
Recs: 0

You have done well on your pick, but I have to say that your reasoning is perplexing. You seemed to be confused with the type of company it is. Usec is like an Uranium enrichment company. It is comparable to an oil refiner. Its business model has nothing to do with having to rely on having Uranium for assets. If Uranium prices go up, Usec will simply raise the prices on its enriched Uranium and pass along the prices to the power companies. The problems with Usec have resulted in them not being able to get the LG for their American centrifuge project. This is the technology upgrade that is needed for Usec to stay competitive.

Featured Broker Partners