USEC Inc.  (USU)     Rate USU  -  Discuss USU  -  Add to Watch List        

Lots of readers have asked if The Kelly Letter is snapping up bargains in the energy sector. I've found that most people divide the sector into two groups: traditional fossil fuels and alternative energy, the latter being considered solar and wind mostly, with occasional mentions of hydrogen and geothermal.

However, the best buy in the energy sector these days has nothing to do with any of that. It's alternative energy, alright, but not the kind that gets placard-carrying crowds excited.

Filed under: Russia, Newsletters, Commodities, Stocks to Buy

"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 newsletter, 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." Here is his review.

"Its competitive advantage? USEC has the single best competitive advantage there is: zero competition -- at lea

Over the last year, USEC Inc. (USU) has fallen from a stock price of over $22 to just over $6. The stock has recently moved upward after falling as low as $3.15, but has since recovered somewhat. Since my call on fool.com, the stock is up 16.82%. Last year USU moved up quickly and was grossly overvalued, but the sell off was extreme and I believe this stock has higher to go in the upcoming months.

 USU has had many critics, and many reasons not to support nuclear energy. It seems inevitable that current energy pricing will not increase the need for more powe

CNBC Stock Blog: In “Playing the Food Chain,” what did stock picker Doug Cliggott warn investors to be wary of?

“Avoid areas where you need lots of credit growth to make it work,” Dover Management’s chief investment officer told CNBC.

"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 reap

• First quarter net income of $4.4 million is in line with expectations.
• Revenue totals $343 million, reflecting timing of orders based on 18-to-24-month refueling cycles.
• Net income and cash flow guidance for 2008 reiterated.
• USU, like OYOG, has "lumpy" sales. “As USEC investors are aware, our quarterly results reflect the timing of the refueling of our customers’ reactors and can vary widely from quarter to quarter,” said John K. Welch, USEC president and chief executive officer.
• A majority of reactors served by USEC are refueled on an 18-to-24-month cycle, and

  This is, in my opinion, the best-valued investment grade stock out there. USEC Inc. has 22% share of the enrichment market. USEC cannot fail. If USEC failed, world will not have enough NU fuel to run reactors. <o:p> </o:p>

USEC has healthy cash reserves. Their technology is THE MOST ENERGY EFFICIENT.   USEC technological lead will stay that way for a while. <o:p> </o:p

USEC Inc. (USU) is a company that provides low enriched uranium for commercial nuclear plants. It’s an interesting play on nuclear energy b/c this country is going to have to diversify its energy plan b/c of national security, but also b/c of environmental issues. Nuclear energy is a clean, non carbon dioxide polluting way to provide energy. USEC is also one of two uranium processors, and the only one in the <st1:place w:st="on"> <st1:country-region w:st="on"> U.S. </st1:country-region> </st1:place> With increased funding in this sector, the company should be seeing a lot of