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Non-Tech : United States Enrichment Corporation (USU)

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To: James Clarke who wrote (57)5/12/1999 11:23:00 AM
From: Edwarda  Read Replies (1) of 81
 
Keep in mind that pricing is being badly hurt by Europeans (mainly Spain) who are dumping about 3 to 5 million SWUs that were previously held as reserves. Add in the effect of Kazakhstan's tossing into the market another 2 million SWUs.

With all this excess supply, the company is signing fewer contracts. Not only does 2000 revenue estimation come down, but also the poorer pricing reduces estimated margins. Result: flat EPS comparison.

Balance sheet and cash flow look strong enough to support the dividend through this period and even to institute a share repurchase program.

However, the fundamental prospects are uninspiring.
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