"They have assets and the price/book is 0.7 . . . ."
When they further write down their assets to market, which they will surely do at today's price of oil, the "book" will be negative. As it is, their most recently reported shareholders' equity was $2.6 billion and they have long-term debt associated with the dividend that they paid to OXY of $6.3 billion.
All their financial engineering is blowing up in their faces the same way as when Verizon spun off its yellow pages in a similar deal several years ago.
As I understand the agreement with Iran, they'll be selling excess LEU to the Russians and, of course, the Russians are selling LEU to Centrus. So, with the blessing of the DOE (Centrus's masters), the Company will be selling the Iranian product in the U.S. and internationally, right?
Do you think this escaped the understanding of Moniz as he was sitting at the negotiating table with Kerry?
Just how stupid are we?
The answer is "very."
LEU needs Japanese export funding and specifically the support of Toshiba to commercialize ACP. Toshiba's accounting scandal may not kill their support for ACP but, as I wrote, it doesn't help.
"TOKYO (Reuters) - Toshiba Corp expects 300-400 billion yen ($2.4-3.2 billion) in charges related to improper accounting in an expanding probe that is set to force Chief Executive Hisao Tanaka to step down, sources familiar with the matter said on Wednesday."
This doesn't help.
Imagine a world in which backwater countries like Pakistan, Iran and North Korea have advancing uranium enrichment capabilities and the U.S. has none. It's a sad commentary.
". . . but I hate to see the Decay of my Old Home Town."
Which Ohio town? I have the same feeling every time I go back to Euclid for a funeral or reunion (there are no more weddings at this point).
If ETE's offer for WMB is successful, the merger with WPZ would not happen. That's why WPZ is selling at a discount to the WMB offer, especially since WMB is itself selling at a premium as a result of ETE's offer. There's money to be made here but I'm not sure just how (yet).
"if you don't understand the significance then you have no business Posting."
That's not constructive at all. If you have insight, why not share your thoughts?
It will be interesting to see if the CEO expresses any humility in the upcoming call. An apology to the analysts who accurately predicted the low target price is appropriate.
Without reading the actual agreement, all I'm saying it that it sounds like DOE could elect to commercialize ACP itself (or assign its right to do so to some third party) in which case it would be obligated to pay a royalty to Centrus Energe not exceeding a maximum amount of $665 million. Such arrangements are very common in the energy sector generally. The royalty would likely be based on a percentage of sales by DOE or the assignee, and that royalty could be $1.00 or $100 million or whatever, based on sales, but be limited on the upside.
That's clear to me from the 10-K disclosure, just as clear as the words "exchange established by the State."
". . . payment of an agreed upon royalty to us, which shall not exceed $665 million in the aggregate."
So that means that the payment could be $1.00, which does not exceed $665 million. And it's a royalty at that, not a lump-sum payment.
At this point I could make a snarky comment about words mattering. That is, to all but Supreme Court justices. But I won't.
". . . if the commercial right is taken away, DOE has to pay a $600M package to Centrus."
Gojerra, can you tell us more about that or provide a link? TIA.
At under $5 per share (or $45 million for the whole company), the share price is merely a call option on dumb luck for an historical investment of public and private funds of around $4 billion. As I see it, this pig could grow wings at any time.
My view is that "nuclear power" and "seismic shifts" should never be used in the same sentence.
"Am I being too liberal or too conservative?"
I'm wondering if there aren't two more choices: sarcastic and cynical.
Maybe DOE needs to plow some of your uranium-breathing bacteria into the Piketon corn fields.
"California, meanwhile, is gearing up for freshwater production with a 50-million-gallon-per-day desalination production facility to open in Carlsbad (southern California) in November."
Hmmm. Too bad nearby nuclear-powered San Onofre is off-line forever and can't be used to make freshwater.