Sadly, that answer depends on lots of factors that have more to do with you than the Company.
Got next month's rent covered?
"They can contract with anyone if they so choose."
I suppose, but would that be a good solution?
Another vendor could hang out a help wanted sign in "downtown" Piketon and see who shows up. Or maybe there are a few Iranian refugees who can get H1B visas to staff the place.
" DOE owns everything."
DOE owns the tangible property and most, if not all, of the intellectual property. But they still need LEU to throw the switches, read the meters, and shovel the manure. The expectation is that this arrangement will allow LEU to commercialize the project, no?
My recollection, without going back to verify, is that the large note holders are prevented from selling their shares in order to protect the Company's NOL carryforward (for income tax purposes). That means that substantial future income would be tax free, another plus for the shares.
My limit buy order for a few lottery tickets, er, USU shares was filled today at $2.81. So, that's my bet that LEU trades upon issuance at above $31 or so.
We shall see.
One more thought.
If Centrus Energy evolves into a sort of public utility, allowed by the DOE to receive what's effectively a statutory return, then that return ought to be calculated based on the Company's total investment in ACP, not just what's left on the balance sheet.
Or so it seems to me as the prince of fairness.
All I know is that the Company continues to state that it seeks commercialization of ACP.
"It is now almost three months since the Joe Douglas rig moved to BBW2 to attempt a completion."
According to a post on the IV board for MMR (#11069 by "cnrlong"), the Joe Douglas commenced completion on July 28 for an estimated 90 days of operations. So it looks like it may be the end of October when the results are announced?
I only see one trade today, a customer sell at 35.96, followed by the customary dealer deliveries. Maybe the seller needs the cash because she has a deposit due on next summer's rental in East Hampton.
The continuing weak price (CUSIP: 2033EAC2) remains a mystery to me. Just like King Ed, I'm hoping for a nice boost in my account value in the next few weeks. But there's obviously something I don't understand, so don't follow my example without your eyes wide open as to the risks.
I also surprised that the bonds haven't been cancelled with the common (USU) no longer trading. Usually these things happen pretty quickly after the POR is approved by the Court.
Mrs. Sponge is lurring me to the kitchen for dinner. Maybe more later. Enjoy the weekend, sports fans.
Ok. My bad. I misread your post.
But how has his trade worked out so far? FTR closed at $6.74 the day before going ex-dividend and hasn't traded within a dime of that close since.
"Funds can smell money anywhere. They are called vultures for a reason."
A few months ago I met with a well known distressed debt investor who acknowledged that this firm was looking at Usec's bonds. They had no opinion or position at the time (at least that they would reveal to me).
"There are no well known funds that are fighting for bonds . . . ."
What, you've never heard of the Sponge Fund?
Canuck, thanks for the refresher on accounting for R&D.
Regardless of how they're characterized, Usec has spent billions on ACP that were either expensed immediately, or capitalized and written off later.
Both give rise to the off-balance sheet assets to which I alluded that MAY provide a substantial investment return in the future.
"After convergence, the note holder would no longer own those new shares and would use them to cover . . . ."
Hopefully when they converge, there will be no injuries. I hate the sight of blood.
"I'm not understanding which entities actually own this 100 Million share trove."
Nobody owns them. They're unissued. They're like blank tickets that may or may not be printed for next year's circus that may or may not come to town.
Simple, because LEU's cash, less debt, is a minus number. You need a course in the fundamentals of financial analysis.
"Look at Mark Nielsen's purchase of 15,000 shares . . . right before the ex-div. The stock will recover and he will also have this huge dividend."
Huh? If he sold BEFORE the ex-dividend date, then he will not receive the dividend, Bubba.
"USU management expects to have . . . over $16.50 per share in cash."
Other than as a measure of meeting liquidity needs, that's pretty irrelevant from a valuation standpoint, especially since the cash less debt will still be a negative number. No?
Nice summary though.
"Comparable companies are going for between 9x and 10x cash."
That's pretty lame, Snooky.
" So to clarify there will be 120,000,000 shares of new LEU stock issued."
Wrong. Read the 8-K yourself, old sport. "Authorized" and 'issued" are not synonyms.
The 8-K says 9 million will be issued:
"The authorized capital stock of the Company after emergence from Chapter 11 will consist of 120,000,000 authorized shares, which will include 20,000,000 shares of preferred stock and 100,000,000 shares of common stock of which 70,000,000 shares will be classified as Class A Common Stock and 30,000,000 shares will be classified as Class B Common Stock. Pursuant to the Plan and on the Effective Date, 10,000,000 shares of common stock will be issued or reserved for issuance by the Company, which will include the issuance of 9,000,000 shares of common stock of which 7,563,600 shares will be Class A Common Stock and 1,436,400 shares will be Class B Common Stock and the reservation of 1,000,000 shares of common stock under the management incentive plan."
"Are you still holding?"
My question for her would be, are you still breathing?