USEC: Management Adds An Extra Billion To ACP Cost (And I Sell My Stock) [View article]
I agree with you regarding SWU being a great investment. I wish I had a better way to go long. I think economically USEC investors are going to lose out due to dilution. I have switched horses and am now investing in Silex.
USEC: Management Adds An Extra Billion To ACP Cost (And I Sell My Stock) [View article]
I am not talking about the write-off. That is purely accounting and doesn't bother me.
The cost of the additional R&D though is accounted for and funded separately.
This additional $1 billion is directly related to an increase in the cost for the ACP and seems to be primarily related to a revised cost estimate.
They underestimated the cost of the project from the very beginning and every year continue to increase the cost of the project. It is no wonder why the DOE is having a hard time justifying the expense.
I agree that the laser enrichment is not as developed but it is also better than centrifuge. You also have GE backing the project.
USEC: Management Adds An Extra Billion To ACP Cost (And I Sell My Stock) [View article]
I don't think I mentioned anything about China needing enrichment. They are definitely growing their nuclear platform though and may need additional enrichment capacity in the future too. I am more focused on global SWU demand and supply. You are correct, China is bringing on some enrichment but not nearly quickly enough or with a large enough capacity to meet the upcoming demands.
USEC: Management Adds An Extra Billion To ACP Cost (And I Sell My Stock) [View article]
Thanks. Unfortunately some mistakes are more costly than others... I definitely had the urge to hold on and see if the market gives it a bounce but I generally don't like to play that game. When my thesis is busted I try to move on.
USEC: Current Valuation Offers A Favorable Risk/Reward Profile [View article]
I wrote an article in response which Seeking Alpha has refused to publish due to formatting issues related to converting a Word document to their upload site.
If I get a chance I will try and fix it sometime.
I am still bullish and have purchased more shares at these lower prices.
Apple Investors Continue To Face Significant Downside Exposure [View article]
I didn't intend for my article to have intense analysis and purposely used ballpark estimations in it so that people didn't think I was doing any sort of valuation analysis.
This article was originally written to rebuff Jun but SA editors requested that I add "more fundamental analysis" to the article.
The article was written to contest Jun's assertion that Apple had no downside risk as it is like a net-net and is implying a doom scenario of 0 growth. The point I tried to make in the article is that there is still a large premium being given to the company from a liquidation valuation - which Jun uses.
The fact is that there is a lot of downside potential (if one assumes that the downside is limited by a liquidation valuation).
I think many of the commentators are not used to value investing where we try and purchase companies with significant downside protection, where the chances much more favorably skewed upwards than downwards.
USEC: Management Adds An Extra Billion To ACP Cost (And I Sell My Stock) [View article]
Silex (SILXY, SILXF) is a much better opportunity (especially at these prices).
USEC: Management Adds An Extra Billion To ACP Cost (And I Sell My Stock) [View article]
Instead they announced during their last earnings that they will require an additional $4B of investment to complete the ACP.
USEC: Management Adds An Extra Billion To ACP Cost (And I Sell My Stock) [View article]
USEC: Management Adds An Extra Billion To ACP Cost (And I Sell My Stock) [View article]
The cost of the additional R&D though is accounted for and funded separately.
This additional $1 billion is directly related to an increase in the cost for the ACP and seems to be primarily related to a revised cost estimate.
They underestimated the cost of the project from the very beginning and every year continue to increase the cost of the project. It is no wonder why the DOE is having a hard time justifying the expense.
I agree that the laser enrichment is not as developed but it is also better than centrifuge. You also have GE backing the project.
USEC: Management Adds An Extra Billion To ACP Cost (And I Sell My Stock) [View article]
USEC: Management Adds An Extra Billion To ACP Cost (And I Sell My Stock) [View article]
USEC: Management Adds An Extra Billion To ACP Cost (And I Sell My Stock) [View article]
I definitely had the urge to hold on and see if the market gives it a bounce but I generally don't like to play that game.
When my thesis is busted I try to move on.
USEC: Current Valuation Offers A Favorable Risk/Reward Profile [View article]
If I get a chance I will try and fix it sometime.
I am still bullish and have purchased more shares at these lower prices.
Apple: Zero Growth ... Really? [View article]
The article just says the market is valuing Apple as though it will have 0 growth in the future - which is clearly impossible - so it's a buy.
The company can easily experience negative growth going forward.
If Samsung's new eye sensor technology is amazing it can easily blow the Iphone out of the water.
I wouldn't be surprised to see an Apple bounce now, but I still think this rubbish about Apple downside being protected is bunk.
March Madness Trading Challenge [View instapost]
Apple Investors Continue To Face Significant Downside Exposure [View article]
This article was originally written to rebuff Jun but SA editors requested that I add "more fundamental analysis" to the article.
The article was written to contest Jun's assertion that Apple had no downside risk as it is like a net-net and is implying a doom scenario of 0 growth. The point I tried to make in the article is that there is still a large premium being given to the company from a liquidation valuation - which Jun uses.
The fact is that there is a lot of downside potential (if one assumes that the downside is limited by a liquidation valuation).
I think many of the commentators are not used to value investing where we try and purchase companies with significant downside protection, where the chances much more favorably skewed upwards than downwards.
Apple Investors Continue To Face Significant Downside Exposure [View article]
Apple Investors Continue To Face Significant Downside Exposure [View article]
Accounts Payables: 26b
Accrued expenses: 13b
Deferred rev: 10b
Other: 19b
Total: 68.7b
Apple Investors Continue To Face Significant Downside Exposure [View article]
Apple Investors Continue To Face Significant Downside Exposure [View article]