Zvi Bar
Long only, value, special situations, long-term horizon

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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details