USEC Inc. - Stock Price Disconnected From Reality
- USU’s stock is up from $3.03 on June 30, 2014 to $11.11 per share – a gain of more than 250% with no change in fundamentals.
- There has been no news – in fact the company declined to comment on any market activity – something I believe is unfair to any buyers of the stock.
- Most value of the reorganized entity is expected to accrue to convertible note holders.
- USU is in the midst of a chapter 11 bankruptcy which will be tied up by the end of September.
- 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.