USEC (USU)


Number of Analysts: 3

Average Recommendation: Hold

Stock Price/Earnings Ratio vs. Industry's: 118.86%

Market Cap: $608.7 million

Trailing Twelve-Month Operating Margin: 4.3%

Trailing Twelve-Month Revenue: $1.82 billion

What's to Like About USEC Stock: "USEC operates the sole commercial uranium enrichment facility in the U.S., so as new reactors in China reach the fueling stage, which several are, it pushes on the available supply, driving up prices globally," Huntington Asset Advisors manager Peter Sorrentino said in September. "The company is currently processing the material from decommissioned U.S. and Russian warheads."

Sorrentino said that this uranium company is a stock that really could go either way -- it's got a high beta. However, it's small enough that if investors get excited about nuclear energy they tend to "run this stock up with a vengeance." The same applies to uranium company Uranium Energy Corp. ( UEC) (see next page), which is also in that category.

Sorrentino said if conditions were favorable, they could at least double within a year.

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