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To: shawn_f who wrote (213182)	1/8/2003 4:13:18 PM
From: Box-By-The-Riviera™	Respond to of 436258

it's a kind of fannie mae <g>

To: shawn_f who wrote (213182)	1/8/2003 5:09:34 PM
From: Tommaso	Respond to of 436258

Yahoo shows a P/E of about 23. As of last fiscal year ending June 30 they had net income per share of $.97, which seems adequate to maintain the 55-cents per year dividend. biz.yahoo.com They have $150 million on hand and at this time seem to intend to maintain the dividend with the expectation of realizing a lot in income in the quarter ending June 2003. But what you point out is certainly worth looking carefully at. For the time being (the last two quarters) they are paying out more in dividends than their profits, though not 500%. Because they deal in huge lots of fissionable material, expenses and income swing wildly from quarter to quarter. The dividend could always be cut. I do think that their near-monopoly on an essential material may be an advantage.

To: shawn_f who wrote (213182)	1/8/2003 5:48:34 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 436258

<<Aquick check of USU shows a PE of 62 multiplied by the 8.% yield means they are paying almost 500% of their earnings as dividends. How long can that continue?>> Until the CEO sells the last of his shares?<VBG>

To: shawn_f who wrote (213182)	1/8/2003 6:59:05 PM
From: Joan Osland Graffius	Respond to of 436258

shawn, >> check of USU shows a PE of 62 multiplied by the 8.% yield means they are paying almost 500% of their earnings as dividends. This is not totally true. There was an accounting charge for early retirement of employees. I own the company and would not recommend anyone to buy the stock unless you do your own DD. The company is a close to monopoly status and a major supplier to the military as well as domestic nuclear power plants. Around 30% of their business comes from overseas and this will grow as Asia is building nuclear power plants to provide cheap electricity. The company also provides all the nuclear work for the EPA and this is cost plus contracting business which is hard to find these days. The material for their product is subsidized by the government as they are using the uranium from Russia from downsizing their nuclear war machine. The negative with the company has been is they are a spin off from the federal government and was not operating efficiently. The management has continued to work on closing plants and getting rid of employees. Another cost they will have is they are investing in a process to produce their product more cheaply which will drain from profits this year. Also the revenues and profits for 2003 will be heavy during 4th quarter 2003 and 1st quarter 2004 because of the character of the nuclear fuel replacement cycle this year. As far as I know they have one competitor and that is a company in France, as France depends on nuclear energy for electrical generation. Their senior unsecured debt was recently downgraded, which I am sure is a negative for some investors.