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

To: Madharry who wrote (7051)	5/5/1999 8:55:00 PM
From: Michael Burry	Read Replies (3) \| Respond to of 78470

Re: USEC, I exited my position at 11 15/16, a point later than I should have. That story has gotten very murky. Mainly, I didn't like the stock crashing through 13 in the setting of a delayed earnings report. Jim apparently still believes. To me, management didn't expect this, and all that about dividend safety is now in danger. If they cut the dividend, the stock will fall, since most institutions bought this for the dividend. mike

To: Madharry who wrote (7051)	5/6/1999 7:41:00 AM
From: James Clarke	Respond to of 78470

I would not sell USEC at anywhere near the current price. I think the market reaction was much greater than the new developments would warrant. Sell side analysts couldn't wait to get away from this company once their investment banking responsibilities ended.

To: Madharry who wrote (7051)	5/9/1999 12:44:00 AM
From: James Clarke	Read Replies (1) \| Respond to of 78470

re: USEC reposted from USEC thread: 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