USEC, Inc. (NYSE:USU)

Selling for below intrinsic worth in a market that should grow where they have a semi-monopoly. Just have to be patient with these types of stocks.

clean energy

Well,bad as we all hate it.I think we still all understand where this one goes from here.Ma and pa do anyway.Todittyloop.

Attractive valuation compared to its peers (12x Est earnings, 0.5x sales, and 0.9x book value), the stock has been unfairly beaten-down owing to few factors mentioned below. Moneyflow has risen sharply following the recent decline and many major holders have increased the stake until the last quarter. Heavy option activity in past couple of weeks, seeing interest in - $12.50 and $15.00 January 2008 calls and also in Oct 2007 $12.50 call indicating near-term upside potential. The company also sells almost third of its output outside the US and should benefit from the Dollar weakness.

Nuclear energy is widely expected to see a major revival in its fortune following recent spike in Oil prices and also countries like China and India who are building new plants are expected to increase the demand. Though Uranium prices have dropped from their recent peak, the outlook still remains much attractive.

Chart: Technically, $8.75 seems to be a strong long-term support for the stock from which it has bounced back almost 7 times since late 2004.

Nuclear renaissance. American Centrifuge Project will dramatically enrichment costs.

America lacks the diversity in energy consumption as it is highly dependant on non-alternative fuels. Nuclear energy is a thing of the future, give it time, dwelving reserves, and greener pastures and this will be a BIG winner in years to come. Look for this to be the next brand killer in energy alternatives

popular

will.....

Growth in green fuels, renewed interest in building nuclear power plants and eventual competitive advantage benefit from advanced refining project that USEC is building.

ready for expansion

Saw that StatsGeek had it.

This stock has had a disappointing last quarter, low margins, low return-on-equity and return-on-assets, so looks a little lame from that angle.

However, I will gladly follow StatsGeek because:

* Annual revenues and income still appear to be growing steadily.

* Stock price is LESS than book price.

* Relatively low debt/equity of 0.15

* Revenues not much under those for CCJ, which has a market cap of $16B versus <$1B for USU.

* Recent bumps in solar industry stocks(alternative power) might soon trickle over to nuclear?

If new nuclear plants are ever approved (obviously this is long-term thinking) this stock should be poised to do well.

nuclear power

Low PE, good at controlling expenses. Growth could be better, though currently similar to peers. Currently selling at lower end of 52 week range. See upward trend for next 1-2 years.

Obviously the energy crunch is only going to get worse. There's little that produces enough energy to help us out in a GREEN way, and uranium is one of the heavy hitters. Nuclear power plants are going to get bigger, better, safer, and more popular. It's better than putting CO2 into the air, tons better than burning coal, and other fossil fuels, incredibly better and more reliable than wind power, and much more realistic than solar (though I would bet on that too).

I think we'll wake up, smell the radioactive waste, and realize it don't stink so bad.

Fire sale going on. Dilution due to secondary will be compensated for by vastly better margin performance by going to gas centrifuges (Why do you think rogue nations choose gas centrifuge? Nukes on a budget.) Price target $25. Potential expansion of nuclear energy to combat carbon emissions is all upside.

One way....South !!

National Security matters. Forget the unreal lobbying effort they have made, and which is certain to generate a return. This country needs to convert international nuke weapons to domestic energy in order to keep citizens and soldiers safe. This is a no brainer, but you won't find value in the numbers or in a valuation. You need to get the geo-politics of global warming, WMD terror, energy independance and the inflationary costs of the alternatives. This company will survive because it has to. Washington will do whatever it takes to fix this. Forget the piddly financial risks and focus on the risks of a world without USU. The US needs this company to do well, it benefits everyone.

USEC Spent an enormous amount of money on R&D for new centrifuge technology, a new 25% offering is to cover their new assets, its worth it!! As the only uranium supplier in the US with international agreements committing the US and Russia as exclusive suppliers, how can you go wrong?