+ Watch USU
on My Watchlist
A global energy company that supplies low enriched uranium for commercial nuclear power plants.
I would have rather had the July 2nd $10.00 entry on this downthumb, but I feel pretty safe after today's 30% run back up to the high 6's.Jed71 and TMFBabo had a good dialogue on this one.http://caps.fool.com/Pitch/USU/7169111/youre-going-to-have-a-hard-tim.aspxShareholders getting 5% in a reorg, as TMFBabo points out is fairly generous. The question now that is settled is 5% of what. One could look at the heavily negative book value and say, that it's 5% of nothing, but then again, one could look at the $1.3B in annual sales and say it's quite a bit. The issue is that USEC has declining revenue and can never seem to book a profit. Costs when handling Uranium are hefty, but there are few places the reactors can go to refuel, so you would think they could price accordingly. With no new reactors except for the Navy, market size isn't going to grow from here.So if you take the $30M current market cap, multiply by 20 you get $600M. Which is .5 P/S, but still full of debt. Lienholders are giving back about $.50 on the dollar and commons are getting this for "free". So a few variables. I suspect that since USU can't turn a profit, that no matter where the share price settles when this is done that we will continue to see it erode. Those trading debt for shares will want out. Current volume is another "tell". After the 1:25 reverse split in July 2013, the float is small, yet volume as TMFBabo pointed out is well in excess. This is daytraders, shorts, short covering......will they never learn on a volatile stock with a low float....I suspect that even if this spikes further that it will decay back down. I wouldn't ride this below $3-4. It will get a new ticker when the dust settles, it will probably drop harder after that happens.
"holders of the Company's common stock will receive, on a pro rata basis, 5% of the New Common Stock, subject to dilution on account of a new management incentive plan."
You're going to have a hard time convincing me that a bankrupt company with $1.4BB in liabilities and $85MM in cash is worth $56MM to the common shareholders. Shares here shouldn't be over $0.10 right now. When all of this has played out, the company will be going to the creditors - and they're only to get pennies on the dollar.
I'm assuming this is getting pumped somewhere ...
Extremely bearish on JPY. I know it has one helluva move to the downside but Japan, as an economy is doomed. Record trade deficits, enormous debt, aging population, entitlements that have no way of being funded aside from printing more yen, fukushima, a nuclear disaster that is still causing VERY serious problems, and only looks to be getting worse with time. The entire developed world is mired in the same problem, and all are trying to increase their exports. When everyone is trying to export, you have no one to export to!The JCB has already showed its hand. It's going to try and devalue its way out of this mess. In the end it really doesn't matter as even extreme deflation will cause the same result via default--- a far far weaker JPY. I can see dollar/yen going to 200 easily over the next year or so...God speed Japan
Very long term play as interest in nuclear power generation gains renewed interest, especially in China.
This is quite possibly the worst company I have ever seen. I have zero confidence this is going anywhere except through the floor.
Looking for a long term rebound in uranium demand/price. No way around it, nuclear power is a no brainer moving forward. Just don't build the damn things on a fault/coast line. Two years from now this stock will be back to its all time high.
Its loaded up and trucking!
Will receive DOE grant for new plant. All up-hill from here. Nuclear energy is our future.
tied in with the fear of nuc dangers , this stock will at best be rangebound
Uranium will shine in the next few years as oil alternatives will urgently be needed.
bad Equity Dec '09 8.17 % -2.52 % -0.18 % 1.79 % 0.84 % 0.09 % 0.09 % -0.47 % -0.78 % -0.21 % <br /><br />bad EPS Dec '09 5.71 % -37.26 % -32.81 % 9.22 % 5.73 % 22.41 % 100.00 % 10.21 % -10.16 % 13.98 % <br /><br />bad Sales Dec '09 26.15 % 2.78 % 3.28 % 6.91 % 7.52 % 5.99 % 14.68 % 3.82 % 6.26 % 3.18 % <br /><br />bad Free Cash Flow Dec '09 100.00 % 100.00 % -79.20 % -66.29 % -42.15 % -46.03 % 100.00 % -44.09 % <br /><br />bad Cash from Operation Activities Dec '09 100.00 % 101.51 % 16.82 % 23.78 % 53.17 % 26.17 % 100.00 % 6.78 % <br /><br />bad ROIC 2.10 % 3.50 % <br /><br />bad Gross Profit Dec '09 -10.53 % -15.62 % -15.30 % -2.82 % 1.07 % <br /><br /> bad bad bad bad bad bad bad bad bad bad <br /><br />These are all bad numbers <br /><br />I would not buy this stock.....
Way oversold at this point and due for a serious correction. This company isnt going out of business and when the demand for uranium returns and subsequently explodes with the addition of new nuclear reactors all over the world, the supply squeeze is going to push profits through the roof. Get in while its still cheap.
wide moat need cheap electricty
Oil's out. Uranium's in. USEC is cutting edge in America. Currently very cheap on recent earning miss. Get it while it's hot.
I only pick winners, and all my research on the company indicates a perfect storm is brewing for the company. I look for undervalued stocks that have great fundementals and are ready to regain some of the lost value we've seen in this economy. This is one I'm buying. Stock is Long.
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