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

To: James Clarke who wrote (57)	5/9/1999 12:42:00 AM
From: James Clarke	Read Replies (2) \| Respond to of 81

I am not a seller at anywhere near the current price. Or anywhere near the price three weeks ago. I don't think much changed in the last week if you are focused on the business. On Wall Street, a lot changed. I am not going to spell out the case again for owning USEC. It is still available on the Value Investing thread at around the time of the IPO. All I will tell you is focus on cash flow, and remember the excess uranium inventory. They are selling it gradually - $80 million a year. That is pure free cash flow, well in excess of earnings, and it is going to be there to secure the dividend until that stockpile is gone - that's a long time. And the business is still quite profitable as well. I would buy the stock here without reservation. JJC

To: James Clarke who wrote (57)	5/12/1999 11:23:00 AM
From: Edwarda	Read Replies (1) \| Respond to 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.