New to DD, so please feel free to contribute. I’m not entirely seasoned on assembling research (yet) but wanted to get this one on here for more experienced eyes.
LEU - Centrus Energy is a supplier of Nuclear fuel and services for the Nuclear Power Industry. They supply Low Enriched Uranium and various other technical solutions to commercial customers from their global network of suppliers.
I stumbled across a few videos on TikTok by an account known as QuiverQuant in regards to $700m allocated by the Dept. of Energy to R&D of HALEU (High-Assay Low-Enriched Uranium) LEU has been investing to meet the necessary requirements to manufacture and supply HALEU, and has recent news related to their progress.
In 2022 we saw a massive uptick in returned interest to Nuclear Power, with many countries stating their commitment to further invest in the development and expansion of Nuclear Power within their countries.
In the above mentioned TikTok, it states that the only company who manufactures and supplies the global market with HALEU at scale is Russian, and speculates (for obvious reasons) why it’s the perfect time to keep an eye on potential front runners to step up and meet the growing global demand for HALEU. For these reasons I’m drawn to this stock for a long term hold as the global market demand for HALEU/Nuclear Power solutions increases altogether.
I’ve taken a small position of 4 shares at a price of $45.70, as they just wrapped up with the construction of their Ohio Uranium Enrichment plant, per Seeking Alpha article 6 days ago.
Again, I’m very new to creating DD so to anyone who wants to collaborate, please feel free to hop in and guide the discussion. It would be greatly appreciated.
It was a good day for LEU. Watched it move steadily upwards to top out around $50/share before coming back down to the $46 range towards the EOD, unfortunately.
I’m going to spend the evening doing some reading to see if I can contribute more to this thread. I know they have earnings coming up on 2/21 after hours… I’m not sure if the recent price action is in anticipation of earnings, but I hope to get a better idea in reading.
Earnings coming out today. I’m likely going to hold my shares on this one for a long time. Another SA article dropped on Centrus’ positioning to dominate the HALEU market… not a bad write up, gives a decent idea of what their pathway is and it certainly is a long term strategy.
Might be adding tommorrow. Call is at 8:30 https://investors.centrusenergy.com/
Hopefully they will mention how critical it is to have haleu producer in US vs in Russia. CEO has political ties, so high chance they will play the cards right in this area.
Investor Presentation came out earlier this month. I’ve continued to add shares throughout this downtrend and will continue to do so, as I see much potential for a long term investment.
I suggest at least leafing through the presentation. I found the included information very educational on the future prospects of the Nuclear Fuel industry.
I’ve never been great at TA, and I’ve learned it can’t be trusted entirely… but I love seeing a bounce. I threw a line on This 5y chart for kicks, though I’m not sure this is of any value.
I’d be curious to hear thoughts from more experienced traders. Feel free to offer insight, I’m all ears!
Recent developments have surfaced regarding a proposed bill that seeks to impose a ban on the importation of Russian Uranium. These developments have significant implications for my investment strategy concerning LEU, given its close alignment with the operations of the respective company.
At present, it remains uncertain whether this news has positive or negative outcomes. It is worth noting that the Centrus Energy is a supplier of LEU to its clientele and maintains contractual agreements with Russian entities. Although the stock price has shown an upward trend subsequent to the news, it is prudent not to rely solely on this price action as an indicator of the Bill’s favorable impact.
As part of my ongoing analysis, I am diligently reviewing Centrus Energy’s 2022 Annual Report to assess their supply chain and evaluate the potential extent to which this Bill could impact their core business and contractual obligations. There could be something big here, but I’m not sure of the direction. Given the intricacies involved, any insights or collaborative efforts in examining the information would be greatly appreciated, as I have limited experience in conducting such a comprehensive investigation.
The day began with a notable decline at the opening bell, as the stock price experienced a significant drop of ~15% within the first hour. Naturally, this evoked a sense of unease in me. In an effort to gain clarity, I scoured the web and investor relations site for any relevant news or filings that could explain this sudden selling pressure. However, my search yielded no significant results.
Curiosity led me to examine the Debt Ceiling Bill, hoping to uncover any references that might impact the Department of Energy’s HALEU investment initiative, which had been included in last year’s “Inflation ReDuCtion Act.” Despite my limited experience in interpreting such bills, I found nothing noteworthy. The only statement that initially caught my attention was as follows: “SEC. 64. The unobligated balances of amounts made available under the heading ‘Department of Energy—Energy Programs—Science’ in title III of division D of Public Law 116–260 are hereby permanently rescinded.” However, upon further examination, it became clear that this statement did not affect the funding allocated to DOE for their U.S HALUE development investment.
Although I am still in the midst of reading, I felt compelled to share my findings thus far, in the hopes that someone might offer a perspective unfamiliar to me regarding the unexpected 15% decline in this stock, seemingly without any accompanying news. I am relieved to note, however, that as of the time of writing, the stock has recovered about 13% of its initial loss. I’m thankful to have had the nail-biting opportunity to bring my cost average down another dollar!
With all the reading I’ve been doing in recent weeks I feel confident in putting together a formal due diligence (DD) report for this trade. Once I finish work, I’ll begin writing a comprehensive DD that covers this trade opportunity in detail. Moving forward, rather than simply sharing news and developments as they come up, I’ll take the time to analyze how certain factors could affect the intended play.
We saw a significant climb of around 7% in the share price which made me appreciative of my efforts to cost avg. down during yesterday morning’s 15% dive. Companies across the board in this sector are performing well today. While I’m currently busy with work, I wanted to provide some information here for those interested in this company or the nuclear sector as a whole.
News Summary: (Copied from linked article)
On June 1, the Senate Environment and Public Works (EPW) Committee enacted the bipartisan ADVANCE Act, a nuclear energy bill intended to position the United States as a global leader in nuclear technology and energy.
The legislation, introduced by Ranking Member Sen. Shelley Moore Capito (R-WV), Chairman Sen. Tom Carper (D-DE), Sen. Sheldon Whitehouse (D-RI), aims to encourage the development and deployment of novel nuclear technologies.
Why it matters:
The ADVANCE Act has the potential to promote market growth and performance in the nuclear energy sector, as it provides the Nuclear Regulatory Commission (NRC) with the tools and resources necessary to facilitate the safe and competitive development of nuclear technology in the United States.
It will reduce regulatory costs, incentivize next-generation reactors, and streamline the licensing procedure for nuclear facilities on brownfield sites.
I started accumulating shares in February and continued to average down, buying 2-3 shares every week. Finally, the share price is above my cost avg. Will pause on accumulating shares and wait to see how this plays out. Seems to be building a wedge on the 5y chart.
I’m planning to exit this position some time after HALEU is fully up and running, as I am anticipating a climb up to that point as sentiment grows.
News dropped! Finally, NRC has completed Ops Readiness Review and approved HALEU production in Centrus’ Cascade at their Ohio facility. The only company to produce HALEU in the US.
Very interesting industry, and I do see the upside to getting in on this early, given the whole “first mover advantage” thing. I’m also very curious to see how the market reacts to this news, but I’m cautious about expecting a rise in the stock today (or this week at all, really) given the FOMC yesterday and the expected red day today.
I’ve started using ChatGPT plus to help me with my research, mainly summarizing reports or potential legislation. Here is a summary of Centrus Energy’s latest 8-K, provided by ChatGPT plugin “ChatWithPDF”.
Summary:
“The document appears to be a report from Centrus Energy Corp, submitted to the United States Securities and Exchange Commission (SEC). The report, dated June 12, 2023, is a Form 8-K, which companies use to disclose specific events that may be of importance to shareholders.
Key points from the document:
Centrus Energy Corp announced that it has successfully completed its operational readiness reviews with the U.S. Nuclear Regulatory Commission (NRC) and received NRC approval to possess uranium at the Piketon, Ohio site and introduce uranium into the cascade of centrifuges Centrus has constructed. This is a critical milestone in advancing toward first-of-a-kind production of High-Assay, Low-Enriched Uranium (HALEU) and means that Centrus remains on track to begin production by the end of 2023.
HALEU is an advanced nuclear fuel required for most of the next-generation reactor designs currently under development. Nine of the ten advanced reactor designs selected for funding under the Department of Energy’s Advanced Reactor Demonstration Program will rely on HALEU.
Centrus is investigating the possibility to scale up the Piketon facility with additional centrifuge cascades for expanded HALEU production, provided that sufficient funding or offtake contracts can be secured. A full-scale HALEU cascade, consisting of 120 individual centrifuge machines, with a combined capacity of approximately 6,000 kilograms of HALEU per year, could be brought online within about 42 months of securing the funding to do so.
The document also includes a disclaimer about forward-looking statements, cautioning readers that such statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors.”
Just got back from vacation to a decent piece of news for Centrus Energy.
Headline reads, “Centrus Energy surges on uranium supply deal with TerraPower.”
From article:
Centrus Energy ($LEU) +11.4% in Monday’s trading after the company and TerraPower unveiled a memorandum of understanding seeking to expand commercialization of domestic high-assay, low-enriched uranium production to supply TerraPower’s Natrium demonstration reactor and energy storage system.
Under the deal terms, Centrus ($LEU) said it will collaborate with Bill Gates-backed TerraPower to ensure the Natrium reactor has access to HALEU at the milestones necessary to meet the project’s 2030 operation date.
