Longs: Here is another gift. Use this bump to get out! USEC the company may be around but your stock value will be nil very soon.
From a trader who has seen it before. I have no position in USU and will not take a position because I have better places to focus capital. Just interested because of the recent moves. GL
Sections in quotes are from a USU news release in late October:
In late October, USU announced the expansion of the Board and the appointment of two new Directors who "were appointed in consultation with certain holders of the Company’s convertible senior notes due October 2014" "In addition, in consultation with such noteholders, the Company has also engaged additional advisory support to assist with a possible restructuring of its balance sheet."
"Debtholders" DO NOT get this close to influencing the management of a company unless they believe their debt position is significantly impaired such that a large amount will soon be exchanged for equity in a restructuring (an in-court BK or an out-of-court restructuring). For a public company like USEC, BK is usually the better option. Existing equity holders should have foreseen the fact that their position would be squeezed down very soon. That's what happens in these cases. In the conference call, USU explicitly stated that these issues would come to a head in the first calendar quarter 2014.
Forewarned, longs have no one to blame but themselves!