USU: Heavy Early Morning Activity On USEC (USU) B
Post# of 776
By Jamie HodgeFollow07/02/14 - 08:56 AM EDT
http://www.thestreet.com/story/12763542/1/hea...c-usu.html
Get TheStreet Quant Ratings' exclusive 5-page report for (USU) now.
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified USEC (USU) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified USEC as such a stock due to the following factors:
USU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.8 million.
USU traded 146,284 shares today in the pre-market hours as of 8:41 AM, representing 11.3% of its average daily volume.
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More details on USU:
USEC Inc. supplies low enriched uranium (LEU) for commercial nuclear power plants in the United States, Japan, and internationally. The company operates in two segments, LEU and Contract Services. Its LEU is a component in the production of nuclear fuel for reactors to produce electricity.
The average volume for USEC has been 92,400 shares per day over the past 30 days. USEC has a market cap of $13.6 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 4.68 and a short float of 23.6% with 0.84 days to cover. Shares are down 54.2% year-to-date as of the close of trading on Monday.
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TheStreetRatings.com Analysis:
TheStreet Quant Ratings rates USEC as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 2440.0% when compared to the same quarter one year ago, falling from -$2.00 million to -$50.80 million.
Net operating cash flow has decreased to -$229.70 million or 31.03% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 58.50%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 118.31% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
USEC INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, USEC INC continued to lose money by earning -$37.28 versus -$245.25 in the prior year.
USU, with its very weak revenue results, has greatly underperformed against the industry average of 3.2%. Since the same quarter one year prior, revenues plummeted by 53.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
You can view the full USEC Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.