Volume Spike Investor

USEC Inc. (NYSE: USU) is gapping lower this morning.  The company announced yesterday that an unexpected decline in sales at its separated work unit was going to cause it to miss annual projections previously offered.  It now sees net income at 425 to 440 million rather than prior projections of $25 to $45 million.  It put revenues at $1.6 billion and now sees its separated work unit revenues at $1.2 billion ($100M under forecasts).

There is one other issue greater than the company’s guidance.  That is the election.  This is a nuclear stock and obama has been anti-nuke in his campaigning.  We have told our subscribers that this is actually a misleading reference as far as this company is concerned today and tomorrow, although the risk is that there could be pushback given on future plants which have not yet been approved.

Shares gapped down and are down over 6% at $4.18 at 9>32 AM on more than 100,000 shares.  This one trades over 1.8 million shares, and we’d expect the guidance and the election results to carry the volume above normal today.

Jon Ogg

November 5, 2008