USEC (USU): 'Ben Graham value play' in uranium

"USEC (NYSE: USU) is the nation's leading supplier of enriched uranium for use in commercial nuclear power plants -- in fact, it is the only supplier," notes value investor Nathan Slaughter.

In Half-Priced Stocks, he explains, "Low-enriched uranium is commonly used as fuel in nuclear reactors, and no other company in the U.S. provides it, giving USEC a dominant position in a key niche market."

"Its competitive advantage? USEC has the single best competitive advantage there is: zero competition -- at least in the United States. While the firm does have a handful of rivals overseas, it has reaped the benefit of being the lone U.S. supplier.

"The company has also been awarded lucrative contracts to perform work for the U.S. Department of Defense. The company also benefits from the nation's longstanding nuclear non-proliferation treaty with Russia.

"Specifically, it parti