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УСУ Message Board

  • splanton splanton Jul 15, 2013 5:32 PM Flag


    Stock of USEC Inc. (NYSE:USU) advanced 9.72% in last trading session and is closed $ 3.19 with average volume 121,254.00 shares. USEC Inc generated income of $ -1195.50 million in last twelve months and sales of $ 1.68 billion. Analytic Ratios; Price to sales ratio of USU in past twelve months was calculated as 0.01 and price to cash ratio as 0.24. USU return on assets ratio is recorded as -41.40%.

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    • Splanton,
      Hope you are feeling better. I wish one of these analysts/publishers of stock info would do a pro-forma on what USEC income would look like based on backlog and use of Tenex plus inventory to meet SWU demand without ACP in the numbers. I think it would clearly show a substantial profit which could be extrapolated out to include ACP assuming a B&W type investor cam in with cash to finish project. The ACP project and Paducah shutdown seems to cloud the judgment of analysts giving credence to fear mongering shorts.

      • 2 Replies to rjosmo
      • USec loses 75% minimum revenue end of this year. USec backlog includes at least a billion, and published reports value it at 3+ billion in contracts for ACP production that they can only sell in USA if customers modify contracts to Russian swu. Majority USec USA customers can't legally or modify to Russian swu. Why? Domenici amendment and Russian Suspension legislation prevent Russia supplying more than 20% of USA market starting 2014. Tenex has published contracts with USA reactor customers. Those contracts will fulfill majority of imports legally allowed to USA. Likely puts Usec 5% USA market share. Japan is USec's main foreign customer of Usec. Japan reactors are shut down and will have gradual restart over a few years.

        There’s the reason USec needs ACP and USec warns backlog may not be accurate or reflect future sales
        There's the reason USec warns you they’ve been unable to secure new contracts.
        There's the reason USec warns you they may not be able to sell the Russian swu
        There's the reason USec warns you post 2013 how sensitive they will be to increase in swu prices. Higher swu prices mean less profit since they buy LEU from Russia
        There's the reason PGBC is negotiating 100m + bond to protect Portsmouth pensions
        There's the reason USec warns you PGBC "may" want much more to protect Paducah pensions since Usec says all funds underfunded 324 million
        There's the reason USec auditors warn USec may not be a going concern
        There's the reason among others this stock price is down 90 plus percent past two years

      • Bonds come due well before any income from ACP. USU is not in the financial position to get the maturity dates on bonds extended. Also, USU needs several billion in cash just to build out ACP over next several years. They will be paying quite a bit of interest expense over that time which will eat up any margin they may have in existing operations.

        I continue to strongly suggest selling on any pop. We got one yesterday. Again, not much of one considering the basis of most positions out there.

        Imminent restructuring coming in form of either straight bankruptcy that wipes out current equity or pre-packaged bankruptcy that highly dilutes equity and still may result in minimal ownership in ACP that may be spun off as a separate company/operation with USU only holding a small percentage ownership.

        Good luck to you and all the good people here on this board. I had great hope for USU years ago, but not any more. The writing has been on the wall for some time now. PPS of .15 (pre-split) should tell you something.