The book value looks intresting at this level. Does anyone have any thoughts or is this circling the drain?
Most price to Sales ratios are about 3x Thus stock price should be 100x what it now is based on sales.
TD Analysis:
"Because the earnings of USU are not available, the Price to Sales and Price to Book ratios are the most appropriate valuation measures. Therefore USU seems valued at a discount with a Price to Sales ratio of 0.0273, one of the lowest in the Chemical Manufacturing industry, which is supported by a Price to Book of 0.0971 that is also among the lowest in the industry."
Note the earnings N/A...so you get the other side of the picture.
T
Sentiment: Strong Buy
Book value $5.32. Should trade there when acp is commercial.
I tried starting a discussion about this last night but yahoo didn't like it for some reason. That $5.32 is based on 98, 120 machine cascades operating at full capacity right? What is the spot price of uranium in your equation?
Sentiment: Buy
Generally people confuse book value with breakup value. Book value is an accounting concept, breakup value is what you get if you sell all your hard assets and go out of business.
I'm afraid USEC may have a negative breakup value. It is enormously expensive shutting down a major industrial facility like the Paducah plant.
As the song says, "Breaking Up Is Hard To Do"
"Breaking Up Is Hard To Do"
Sell Paducah to Silex.
Huge potential, imo, tho uraniums have been crushed.
Trade bounces, keeping some. jmo
Peace Energy Strategies
Agape ~