5-Star Stocks Poised to Pop: USEC

By Brian D. Pacampara | More Articles
June 23, 2009 | Comments (3)

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, enriched-uranium provider USEC (NYSE: USU ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at USEC's business and see what CAPS investors are saying about the stock right now.

USEC facts

Headquarters (founded)	Bethesda, Md. (1993)
Market Cap	$552.76 million
Industry	Industrial Metals and Minerals
Trailing-12-Month Revenue	$1.78 billion
Management	President/CEO John Welch (since 2005) CFO John Barpoulis (since 2006)
Return on Equity (average, last three years)	6.7%
Competitors	Cameco (NYSE: CCJ )
CAPS Members Bullish on USU Also Bullish on:	Vale (NYSE: VALE ) General Electric (NYSE: GE ) Apple (Nasdaq: AAPL )
CAPS Members Bearish on USU Also Bearish on:	Citigroup (NYSE: C ) Ford Motor (NYSE: F )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

Over on CAPS, 96% of the 1,268 members who have rated USEC believe the stock will outperform the S&P 500 going forward. These bulls include Salukis87 and Keln30.

Two months ago, Salukis87 tapped USEC as an enriching way to play enriched uranium:

Commonsense technology. Wind and solar will not get the job done. Coal is expensive. The French have been doing it safely for years! It is the only American company ahead of the curve with the backing of the US govt.

In a January pitch, Keln30 summed up the atomic opportunities:

USEC should be beginning commercial operations in its new, state-of-the-art centrifuge uranium enrichment plant in 2010, and at full production by late 2012. With 30 new nuclear plants in the works, a [Department of Energy] secured loan imminent for $2B, and a virtual monopoly on the US [low enriched uranium] market, getting on board this train now is a good buy for a long term investment.

What do you think about USEC, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor pick. The Fool owns shares of Cameco. The Fool's disclosure policy always gets a perfect score.

Read/Post Comments (3) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On June 23, 2009, at 1:59 PM, godofbrew wrote:

Can anyone set my mind at ease of the nucular talks between the U.S. and Russia as far as the ams reductions that could flood the market with Uranium? I'm long USU but nervous about a big pull back.
Report this Comment On June 23, 2009, at 3:11 PM, cyfi51 wrote:

If they agree to reduce nuclear arms all that uranium in wapons will need processing to use it as a nuclear fuel. It should be more business for USEC
Report this Comment On July 14, 2009, at 11:13 PM, moabrkcrawler wrote:

I wouldn't bet long term on USU. Highly Enriched Uranium (HEU) used by USEC under the Megatons to Megawatts programs is nearly depleted. Whether there is more or not is anyones guess however there is no question that if the American Centrifuge Plant (ACP) gets off the ground they will face stiff competition in the U.S. from more competent suppliers. I'd be looking for a pop on news of the DOE loan guarantee then get out. Louisiana Energy Services (LES) is constucting an enrichment plant in Grants, New Mexico based from same technology. Areva plans to build in Idaho. General Electric's pilot plant using the proprietary Laser Enrichment process is nearly complete in Wilmington, North Carolina. GE's technology, while not proven on a large scale if successful will be the most efficient, lowest cost uranium enrichment technology in the U.S. and is planned to begin production in 2012. LES should begin small scale production in 2010. HEU, if available, will yield more profit if process by any of LES, Areva, or General Electric as their are simply better at what they do.

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