BETHESDA, Md., Jul 19, 2013 (BUSINESS WIRE) -- USEC Inc. USU +29.27% made the following statement: In view of the unusual market activity in the company's stock, the New York Stock Exchange has contacted the company in accordance with its usual practice. The company stated that its policy is not to comment on unusual market activity.
USEC Inc., a global energy company, is a leading supplier of enriched uranium fuel for commercial nuclear power plant
Its interesting that the NYSE would not ask the question as 60% of the stock value was lost after the RS and all the short action but as soon as shorts started getting burned all of a sudden there was official interest. I wonder if the NYSE played a role in the initial but apparently incorrect interest and belief of shorts that USEC was gong BK even though it owned billions in new facilities and had nearly $200 million in cash. Maybe all the shorts needed to know or "remember" is that USU used to be part of fed govt and perhaps a lot of the stock is still held by gov't officials not about to lose their investments!
PERHAPS shorts should have covered or stop whining about it!
IMHO See y'all at $10 plus soon
They did the reverse split just before Congress was voting on whether or not to cut off funds to USEC. This raised the share price to easily shortable levels. A lot of institutions won't let you short a penny stock. USEC became an irresistable target for shorting. Once it bottomed and the defunding threat was temporarily removed it did a textbook Fibonacci retracement. The only "unusual" thing was the violence of the move.
The only question now is if it can do a full retracement to the $7 level, or if profit takers will resurface. One possibility is that people who shorted below today's closing price and are still short might begin panic buying, causing a short squeeze. IMHO, the easy money has already been made.
I didn't exactly notice that it was that easy, though I'm pleased to toot that I added about 25% to my position post-split, at an average price of $3.07, and must regrettably also report that I've paid that much pre-split too.
The next year will be interesting. Holding for more upside.