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.

Non-Tech : United States Enrichment Corporation (USU) -- Ignore unavailable to you. Want to Upgrade?

To: Stock moghul who wrote (30)	10/16/1998 8:22:00 AM
From: Terrapin	Respond to of 81

More news: (actually an excerpt of what you posted) (Too bad they chose this point to emphasize) Friday October 16, 1:16 am Eastern Time USECexpects FY99 earnings to miss estimates BETHESDA, Md., Oct 15 (Reuters) - USEC Inc. said Thursday that it expects fiscal 1999 earnings to fall about 25 percent below analysts' consensus estimates of $1.60 per share. The company attributed the shortfall to expectations that fiscal year 1999 costs will be greater than previously estimated because the effects of record-high electric power costs, an unanticipated downward revision in the inflation index by the Department of Commerce, and increased interest and income tax expenses. USEC, which was formed when the government sold its uranium enrichment business, said in a statement that it expected its revenue for that period to remain in line with current estimates. Its stock closed Thursday at 15-1/2, up 5/16 on the day. --------------------------------------------------------------------------------

To: Stock moghul who wrote (30)	10/16/1998 8:54:00 AM
From: Terrapin	Read Replies (2) \| Respond to of 81

Well, here's my take on it. Revenue of 307.9 vs 440.4 same quarter last year: Increased electricity costs: Explained by the nature of there business that revenues should be viewed over a longer term. Fine, I can except that. Believable but on page 6 of the prospectus they list as a Competitive Advantage a low-cost power arrangement which will continue following privatization. That doesn't mean that they were lying; they may have been charged the maximum 2c/kWh. Special tax benefit: I don't know anything about this. Is it temporary? If it is then should we expect net income per share to be $0.09 from now on? I had viewed this company as bringing in $0.60-0.63 per share. Dividends: They have the statement that they are confident of continuation of strong margins and dividends. Reassuring; page 9 of the prospectus says they intend an initial quarterly dividend of $0.275 per share subject to earnings, financial condition and cash requirements. The question is whether the current situation merits a cut. I agree that this company should be analyzed over the long term. I'm a little disappointed but I definitely won't sell. This will just make the dividend a little more exciting :) I look forward to comments from Jim and Mike - they've looked into this more than I have. Comments welcome, John

To: Stock moghul who wrote (30)	10/27/1998 12:58:00 AM
From: James Clarke	Read Replies (1) \| Respond to of 81

Here's a date to put on your calendar. January 24th. Why? Because managment of USEC, under the government deal, was not allowed to price stock options or buy back shares for six months after the IPO. Which means they have every personal incentive to make this company look like an ugly duckling until then. Don't get me wrong, I think these guys are honest. But put yourself in their shoes. When do you think the share buyback is going to be announced? When do you think new contracts or cost savings plans that are underway now will be announced? Find out when the January board meeting is scheduled, and mark that date on your calendar. Jim