Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (4617)	8/6/1998 9:36:00 AM
From: James Clarke	Respond to of 78669

re: USEC real brief. go back and read the whole discussion a couple weeks ago. but I like your questions. 1. environmental liabilities are indemnified by the U.S. government 2. Russia wants the contract, USEC would love to break it tomorrow. If they were to stop shipping it would be a gold mine for USEC. They won't. The risk is the other way, that the Federal Government forces USEC to buy more Russian HEU. 3. No opinion 4. I have no reason to believe this is not a stagnant, even declining business. That's why the dividend is so important. But I think if you read the prior posts you'll see there's a lot more to the story than that. Jim

To: Madharry who wrote (4617)	8/6/1998 9:47:00 AM
From: James Clarke	Read Replies (1) \| Respond to of 78669

Oh, you had another first question. You are absolutely right. Management is essentially short their own stock for six months. Then that will change 180 degrees. So if you are interested in timing this, wait a couple months and see if you can pick it up at 12. With a two year time horizon, I was more worried about missing it on the upside. Now that "risk" has diminished (i.e. the stock is falling) so I am waiting to fill my position (I bought half of what I want, and what I want would be a very large portion of my portfolio.) If you're not quite sure, pick a price (remember, the dividend is $1.10) you'd buy it at and see if it gets there. It might). Don't wait too long though. Your judgement about the options is the catalyst for the stock. Options get priced in January, and management would love for the stock to be trading at 9 at that time. A couple days later, you will likely see announcements of share buybacks, cost cutting and new contracts.