USEC, Inc. (USU)

frankaj9 (97.25) Submitted: 7/26/07 2:36 PM : Start Price: $16.39 USU Score: -49.78

In many ways USEC Inc (USU) reminds me of the former American Motors (AMO). American Motors (brands like Jeep) was building, and completed, a brand new plant in Bramalia, Ontario in Canada. In reading AMO's annual report I found out AMO was assembling cars for Chrysler at $400 to $800 per car. That info was not in any news reports that I could find. I started buying AMO at $1.25 per share. My broker recommended to buy GM or Ford instead. My broker didn't know AMO was assembling Chrysler cars and wanted to know where I got that info. After I explained ... I told my broker I expected Chrysler would evaluate the cars assembled by AMO and BUY AMO. It took a year and a half but I more than TRIPPLED my money. Reading annual reports pays. Playing detective pays.
So, how does this relate to USU? Easy, USU has done all the HARD WORK on the American Centrifuge. USU has a place to build the plant and permits to enrich to 10%. But USU is struggling to build the plant. USU had to terminate the dvidend. This impacts USU stock price now because the market is so short sighted. Focused on today, USU competitors will watch their stock prices climb ... until USU's plant goes online (saving huge amounts of ENERGY which costs MONEY) then I expect a bidding war for USU because the energy savings from the American Enrichment Project wil make USU unique worth $55 - $60 per share.

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