" Recent declines appear excessive, including the 39.5% decline on Friday, July 5, indicating a probable reversion prior to the announcement of such any secondary. Though substantial dilution is possible, bankruptcy and delisting appear less likely, and current valuation offers speculative investors the potential to earn substantial returns in the next few years."
USEC went down Friday on no news. It was the result of 1-25 split and a low volume stock moves sharply when a few sellers want out and when stops are hit.
Friday trashers were saying "BK over the weekend...delisting" etc... Nothing happened over the weekend which validates that the plunge Friday was merely momentum triggered by the 1-25 split two days prior.
I really, REALLY, hope you have studied USU and know what is going on here. It is much more than just a reverse split situation. Of course, the RS is acting as a catalyst for shorts to push PPS down much further. Look at market cap and you will see that there is no real value left here. When market cap stabilized at around 40mm a while back, there looked to be some hope for shareholders from the dilutive restructuring. With market cap dropping to almost nothing, there will be very, very little left for shareholders when the restructuring is announced.
I expect PPS could quickly drop to $2 area or even lower. Like I have said over and over, sell on any bounce. One occurred this morning, although it was a small one.
I hope you reconsidered and dumped those shares. This is a falling knife with no hope of recovery. The shorts have basically forced USU management's hand now. The dilution here is going to be dramatic. Hard to imagine shareholders getting much of anything with market cap so low and USU needing billions to build out ACP.
You really should have sold everything when it hit the upper $3s this morning. That poster that said USU will go back below $1 may be right. Shorts win again.
USU has been decimated to the point that market cap will not warrant much recovery, if any, from a restructuring. The restructuring is necessary for USU to survive and allow it to submit loan application to procure loan guarantee for ACP. As market cap gets cut down, dilution level increases. Market cap is so low now that remaining shareholders will get very little ownership, if any, in the reorganized company.
This article and any other BUY claims are just to help clients dump shares of USU. This stock is in free fall with no possible recovery IMO.
Gvt has something at stake with USEC. It is in the gvt's interest to keep this afloat.
"The already expensed government dollars in support of the centrifuge project and the anticipated jobs to be brought to an important block of voters both support USEC's chance to receive a loan guarantee from the Department of Energy. This program has cost the company about $3 billion and USEC may only be about half way through its total expenses, depending on how things go. If completed, expenses should quickly drop and the company has the potential to surge into profitability."