Breaking Finance News

BREAKING- USEC up 11 Percent – Earnings Tonight (USU)

Shares of USEC (NYSE: USU) are up 11 percent on the day and more than 400 percent on the month. The company is set to release its second quarter earnings after the bell Monday with a conference call scheduled for 8:30 a.m. Tuesday.

Renewed optimism surrounding nuclear power in Japan propelled the stock higher causing a massive short squeeze. Then, the company announced that it received further Department of Energy funding for its centrifuge project which has completed 6 of the 9 milestones.

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1) The centrifuge technology being developed is already outdated and is nothing more than a political pet-project.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

Breaking Finance News has provided extensive coverage of USEC in the past month. Click here to view the articles.

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

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