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USEC's Recent Reverse Split And Share Implosion Present A Speculative Opportunity

The highly speculative uranium enricher, USEC (USU), has fallen on terrible times in the wake of its reverse split and expectations of a coming dilutive secondary. Recent declines appear excessive, including the 39.5% decline on Friday, July 5, indicating a probable reversion prior to the announcement of such any secondary. Though substantial dilution is possible, bankruptcy and delisting appear less likely, and current valuation offers speculative investors the potential to earn substantial returns in the next few years.

USEC is a supplier of low enriched uranium for commercial nuclear power plants. USEC is attempting to bring on line its new enrichment facility, the American Centrifuge Plant ("ACP"), and just recently phased out much to all of its former operations. The...

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