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

To: Terrapin who wrote (32)	10/16/1998 9:35:00 AM
From: Roy F	Respond to of 81

MERRILL CUTS USEC INC NEAR-TERM RATING TO ACCUMULATE FROM BUY October 16, 1998 09:09 AM REUTERS

To: Terrapin who wrote (32)	10/27/1998 12:49:00 AM
From: James Clarke	Respond to of 81

The earnings report was disturbing. But put it in perpective. The electricity cost problem - the numbers are in the ballpark of what management's explanation would lead me to expect. The "asset" they claim from low cost power contracts applies to 65% of their power. The other 35% is market priced, and the market went haywire on them late this summer. They have two plants, Portmouth and Peducah. Portsmouth is the one with the power contracts, and they can't use all the power they have contracted at low prices. If they can figure out how to transfer that power to the other plant, their problem is solved. Even if they can't, this is a problem which will occur in the occasional summer, but must be put into the perspective of the valuation of the business. Bottom line for me - I haven't sold. Management faced a problem in its first quarter as a public company which was embarrassing and costly, but far from backbreaking. They addressed it honestly and forthrightly. I invested in this because I think good things are going to happen over a two-three year time horizon, and unless management is playing games with me, I am going to give them the chance to prove me right.