USEC stages another day of strong activity, tripling in two days

|By:, SA News Editor

USEC (USU +25.5%) extends yesterday's huge gains following news of $2.5M in new funding from the Department of Energy; shares have dropped off early morning gains of as much as 65% but have more than tripled since the announcement.

A Seeking Alpha blog says the $2.5M influx moves the needle very little in the context of refinancing $530M of bonds outstanding, and that the stock soon will revert to fundamental valuation; post-reorganization, with convertible note holders taking the lion's share of value, equity holders will be left with less than 5% of the current trading value of the stock.

Uranium peers are mostly higher: URRE +8.8%, URG +5%, UUUU +2.8%, URZ +2.7%, DNN +1.5%, UEC flat.