5-Star Stocks on the Upswing

• Report this Comment On March 16, 2009, at 5:17 AM, kgboston wrote:

  I have had USU for over 1 year and have a substantial holding; however, have taken my lumps. Due to their long revenue cycle associated with their business (i.e. the low to high demand for refueling of Nucllear facilities, thus show less revenue in the low demand cycle as compared to the increased revenue (demand) in the high cycle. Presently, I beleive they are entering the high demand cycle (about a 20 month cycle)). Into this mix you add that Usec has old technology; however, state of the art technology around the corner with the present project of building a new reactor. In the short term this has hurt share value, because budget over runs and questions regarding DOE funding are in question. Even though Obama's clean energy drive looks good for Usec there has been little comment regarding the need for more nuclear energy as compared with the rest of the world which is building up quite rapidly (i.e. China, Russia, Europe etc.). One can only question Obama's plan and does it include Nuclear Energy. However, even without the USA world demand should be ever increasing. Another concern is Russia, which provides Usec with low grade uraniam via meggawatts for megatons and with their economy in shambles one can only question the reliability of that supply which could impact margins. However, USU is very undervalued and has projected dramatic turn around in net revenues and margins. Back to my comment on your article. Just a few days ago USU was downgraded to a 4 star cap rating and a stockpicker number of 3 and here you are saying it is now a cap rating of five when it is still a 4 star with a 4 stockpicker rating. There is no real detail in your article and the message is misleading. Again; however, Usec has a niche and is the only US firm in its niche. With rising demand, higher projected revenues, eventual DOE fundinng, new technolgy on the horizon and that overwhelming dermise to its stock valueation cause partly to over all market downturns, I am sticking with Usec at least for the short term.

  Best Regards,

  Kevin A. Griffin

  kgboston@gmail.com

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