Breaking Finance News

BREAKING- USEC Regains NYSE Minimum Price Compliance


In a press release Wednesday, USEC, Inc (NYSE: USU) said that it was notified by the New York Stock Exchange that it had regained compliance with the NYSE’s minimum share price standard allowing it to remain listed on the NYSE.

In May of last year, the NYSE notified USEC that because its average price had fallen below $1.00 for the prior 30 days, it was in danger of being delisted. On June 27, stockholders approved a reverse split which took effect on July 1. This resulted in the stock trading above $1.00 for 30 consecutive trading days.

USEC has made a lot of headlines of late as the stock ran up nearly 400 percent in the past month. The move was likely a result of short covering as a more bullish stance was taken by Japanese lawmakers over the prospects of reinvigorating its nuclear program.

USEC is a uranium refiner which, on Monday, announced that it was entering phase seven of a centrifuge project and had secured another $30 million in funding from the Department of Energy. This news, and the continued hopes that Japan will bring its nuclear power plants back online have caused the stock to gain 300 percent in the past week and 500 percent in the past two weeks.

Then, the company announced that it had received more government funding for its centrifuge project but according to this Seeking Alpha article, investors should get out of USEC and be happy with their profits because the stock is likely to head to around zero.

The author cites a few reasons.

1) The centrifuge technology being developed is already outdated and is nothing more than a political pet-project.

2) It’s uranium enrichment facility in Kentucky was its only real source of income aside from the centrifuge research. This facility was taken offline in May.

3) Company insiders have purchased no stock in the company they run.

[stock-tools exchange="NYSE" symbol="USU" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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2 Comments

  1. Curtis Finch

    August 14, 2013 at 4:44 pm

    Tim should look at the whole story. Sales – Russian LEU deal – long term contracts – GD clean up.
    What’s better than centrifuges? Don’t bet on AVLIS -YET.
    I’m betting on USU.and centrifugal separation.

    • Tim Parker

      August 14, 2013 at 5:29 pm

      Hi Curtis. Send me a link. I would enjoy reading additional information. I didn’t find verifiable information on further revenue streams. I haven’t talked to many people who believe the centrifuge is going to be much of a positive and technically, you can’t put money to work in a stock that is up 400 percent.