No questions during the Q&A on the call this a.m. That's consistent with my opinion that the Company needs no director of I.R. It should be a part-time collateral duty of the CFO. What the heck is he doing anyway, dealing with banks? He's not needed to do the accounting. A bookkeeping service in Bethesda could just about handle all of that.
Cut, cut, cut. Then cut some more.
The Company is currently looking for a new director of investor relations with a long list of high qualifications (see the website home page).
For what? This is a company with a market cap of $32 million, or about that of one small hotel or car dealership. Hiring such a non-producer is crazy. Management needs to run Centrus like a start-up and cut staff, not add.
". . . in this business all proactive and relevant international connections are welcome."
I can live with that.
What's missing is anybody with the understanding, authority and focus on driving revenues up and expenses down. Why, for example, is the ACTDO contract consistently conducted at a loss? Even DOE and UT-Battelle ought to understand that that's not sustainable. The Company needs to cover all its costs (including fully-absorbed overhead and the cost of capital).
These two new guys (and Poneman himself) seem like precisely the kinds of managers that have been wandering the halls of Centrus/Usec forever.
Where is somebody with a history of turning around an unprofitable company to generate sustained profits? Do these guys even know how to price their product? Do they know how to take a chainsaw to expenses?
Centrus needs somebody from a private equity firm, or somebody should walk up the street and hire a senior manager from Lockheed Martin who knows how to squeeze money out the government.
With the Iranian deal just about over the hump, maybe Moniz will start thinking about what to do with ACP.
The ultimate act of _______________ (fill in the blank with a word of your choice) would be for Moniz to have been a party to keeping the Iranian centrifuges spinning, and then come home to stick a fork in the U.S. program.
Correction! Make that 8/26, as in Wednesday, August 26.
I hope somebody asks the hard questions and that management gives straight answers.
". . . nuclear power shall be encouraged ONLY if the waste issue is resolved."
Once Harry Reid is out to the way, that may not be a problem.
"" between 1646 and 1715, was a time of unusually low temperatures in England, when the Thames River actually froze over. During these years many of Americans’ ancestors left England for the colonies to escape the chilling conditions."
The lucky ones booked summer passage.
"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.