2011 was an absolutely terrible year, to say the least, for uranium and uranium miners like USEC, Inc. (NYSE: USU) which was down 78.57% for the year. Most uranium mining equities were down as much as 80% for the calendar year 2011.
First was the Japan nuclear catastrophe followed by Germany’s indication that it was going to seek alternative energy sources aggressively and reduce its use of nuclear power all while Iran stood strong on its intent enrich its nuclear program.
Once 2012 started, quite a lot of these equities have started 2012 looking for retaliation for their shareholders. Several have gained back some of their market share which may be an indication that the uranium miners bottomed in Q4 of 2011 and are due the attention they deserve. In addition, recent remarks from Chinese Prime Minister, Wen Jaibao have highlighted the country’s intentions to focus on nuclear energy and limit its use of coal.
USEC Inc.is a leading world supplier of nuclear fuel and advanced technology solutions. USEC operates the only U.S.-owned uranium enrichment facility in the United States. Thanks in part to the Cold-War; USEC is the world’s most successful nonproliferation program recycles bomb-grade uranium from dismantled Russian nuclear warheads into fuel used to power America’s nuclear reactors.
USEC’s subsidiary, NAC International, performs a variety of contract work for the U.S. Department of Energy (DOE) and the U.S. Nuclear Regulatory Commission. These contracts include:
- Supply of design development services to the DOE for its Transportation, Aging, and Disposal (TAD) canister system.
- Prime contractor for several major government design, engineering and fabrication programs, including at Hanford (Washington), Savannah River and Oak Ridge.
- Specialized cask services for the DOE, including design of a unique transport cask for Californium and support for recertification of the Paducah Tiger UF6 transport over pack, including drop test analysis.
USEC’s stock is traded under the symbol USU on the New York Stock Exchange (NYSE) and has 1,917 listed full time employees.
Website: http://www.usec.com/
Company Snapshot:
| Trading Symbol: | NYSE: USU |
| Last Price: | $1.80 |
| Avg Vol (3 month): | 1,876,700 |
| Avg Vol (10 day): | 2,324,710 |
| Market Cap: | 219.58M |
| EBITDA (ttm)6: | 4.80M |
| Total Cash (mrq): | $117.90M |
| Shares Outstanding: | 121.99 million shares |
| Shares Short (1/13/12): | 18.90 million shares |
| Shares Held by Insiders: | 12.50% |
| Insider Purchases (Last): | 10,000 shares @ $3.959 William Lance Wright, Officer May 26, 2011 |
| Insider Sales (Last): | 2,078 shares @ $1.80 Christine Ciccone, Officer September 24, 2011 |
| Institutions Holding Shares: | 125 |
| Top Institutional Holder: | 8,708,280 shares Dimensional Fund Advisors, LP (as of 9/30/2011) |
| Top Mutual Fund Holder: | 3,522,849 shares Global X Funds: Glbl X Uranium ETF (as of 11/30/2011) |
| Contact Information: | Two Democracy Center 6903 Rockledge Drive Bethesda, MD 20817 |
| Investor/Analyst inquiries: | Steven Wingfield Phone: 301-564-3354 |
| Next Earnings Date: | February 20, 2012 |
| Profit Margin (ttm) | -1.90% |
| Operating Margin(ttm): | -2.22% |
| Return On Assets(ttm): | -0.67% |
| Return On Equity(ttm): | -2.65% |
| Qtrly Revenue Growth (yoy): | -33.70% |
| Operating Cash Flow(ttm): | $99.70M |
| Levered Free Cash Flow(ttm): | $-85.50M |
USU closing price for the week that ended Friday, January 27, 2012 was $1.80, up 10.43%, on volume of 4,266,076.
USU is trading 37.69% above its 50 day moving average and -4.67% below its 200 day moving average.
USU is -70.49% below its 52-week high of $6.10 and 66.67% above its 52-week low of $1.08.
USEC’s Governance Risk Indicator (GRI®) as of Jan 1, 2012 is:
- Audit (Low Concern)
- Board (Low Concern)
- Compensation (Medium Concern)
- Shareholder Rights (Medium Concern)
Long Term Forecast:
It seems inevitable that uranium demand from new and sizable locations such as China and India, among other wealthy Asian nations that may announce similar initiatives, will begin to outpace uranium supply, possibly creating dramatic shortages and price spikes to both uranium and the shares of uranium producers.
USEC also continues to work on the American Centrifuge project and that USEC and the Department of Energy have identified a path to provide interim funding for the initial phase of a research, development and demonstration (RD&D) program for the project. This path would provide the basis for funding of the RD&D program activities through the end of March, 2012.
In the meantime, USEC will continue to work with DOE and Congress to secure funding to complete the RD&D program. The $300 million RD&D program proposed by DOE will enhance the technical and financial readiness of the centrifuge technology for commercialization. The RD&D program is expected to involve manufacturing and operating additional production-design machines so that key systems can be tested as they would actually operate at the scale necessary for full commercialization.
“Be fearful when others are greedy, and be greedy when others are fearful.” – Warren Buffett
If you really want to make some considerable profits from the stock market, it is possible to make a considerable amount of money on penny stock trading. When you find the right penny stock to buy, knowing when to buy and sell is the second most important tool to maximizing your profits.
Being technical, analytical or just flat-out greedy when trading penny stocks is the easiest way to limit profits and, sometimes, even lose your entire investment. You need to have a strong and strict strategy to achieve your goal of maximizing profits while minimizing risks in penny stocks.
Listed below are a few of the many points each and every penny stock investor needs to discover.
- Do your own research.
- Trade Responsibly.
- Verify everything.
- Move Fast or Get Left Behind.
- Do not use market orders to enter a position, use limit orders.
- Have a System That fits You.
- If a Stock Gaps Open, Look for Pullbacks to Enter.
- Plan a Trade and Trade a Plan.
- Always use stop loss orders to protect yourself.
- Positive Self- Belief.
- Keep trading as Part of a Balanced life.
- If a stock breaks below our alert price GET OUT. Do not wait.
- View Trading as a Score in Points and Not In Money:
- Always take your profits whenever you can. Do Not Be Greedy.
- Work Hard at Learning How to Trade Properly and Keep Working.
- Do something to make someone else’s life better today.
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