Energy Solutions (ES) (ES)

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Humm, check out the range on today's trading. Guess the market makers wanted to clear out the stops...

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Buyers Abound at EnergySolutions
By TERESA RIVAS

Insiders bought $6.1 million in shares of the nuclear-waste handler.

THE ENERGY-SECTOR PULLBACK has burned a number of companies, including EnergySolutions , (ticker: ES) whose shares have lost about a third of their value since the nuclear-waste-handling firm's November initial public offering. But two executives seem to think the selloff has gone too far, and used the weakness to buy $6.1 million in stock the day after it tumbled to a new low.

On Sept. 10 and 11, Chairman and Chief Executive Officer R. Steve Creamer purchased 300,000 shares for $4.6 million, an average of $15.37 a share. He now owns 300,000 shares directly, and 2,300 shares indirectly through his wife.

The buy was Creamer's second, following his 2,300 share-purchase at the company's IPO.

Also on Sept. 10 and 11, Vice Chairman J. I. Everest II purchased 100,000 shares for $1.5 million, an average of $15.35 a share. The purchase was his first since the IPO, and was made through the Everest Family Trust.

Neither executive owns more than 1% of the Salt Lake City-based company. However, both are shareholders of ENV Holdings, which has a 16.7% stake in EnergySolutions.

EnergySolutions did not return phone calls seeking comment on the purchases.

Creamer's and Everest's purchases began the day after EnergySolutions shares dipped to a new 52-week intraday low of $13.41 on Sept. 9. That's less than half the stock's Nov. 15 high of $29.

Year-to-date, the stock is down 30.5%, compared with the 8.3% gain seen by its peers tracked by the Dow Jones Waste & Disposal Services Index.

On Tuesday, the stock gained 37 cents to $15.52.

"In terms of the buy, it's certainly a significant amount of money and a positive sign," says Ben Silverman, director of research for InsiderScore.com.

Silverman notes that it's good to see the insiders stepping up, to remind shareholders of the company's strengths.

"It's not as if the fundamentals here have [deteriorated]," he says. "The company has a relationship with the majority of the nuclear plants in the U.S. and also handles materials from hospitals and manufacturers. So while that business may be impacted to an extent by the economy, it's not consumer-focused."

And there is a chance that the upcoming Presidential election could open up new opportunities for EnergySolutions, though that remains to be seen.

"Both of the candidates say that they believe that nuclear energy is an important part of lessening our oil dependence, but whether or not they do anything about it once they're elected is another story," Silverman says.

The purchases by Creamer and Everest boosted EnergySolutions' Thomson Reuters Insider rating to nine from four on a 10-point scale, with 10 being the most bullish. That score is well above the Waste-Management Industry average of 6.1.

Analysts also seem confident about EnergySolutions. Those surveyed by Thomson on average rated the company at Buy or the equivalent, with a 12-month target price of $24.56.

A week before the insider buys, on Sept. 4, Sterne Agee & Leach analyst Ben Elias initiated coverage of EnergySolutions with a Buy rating and a $23 price target, noting that the company has "a unique asset base and proven ability to provide back-end services."

"EnergySolutions is a beneficiary of aging nuclear infrastructure in the U.S. which requires decommissioning and remediation services," he wrote in a research report. "EnergySolutions is not dependent on the nuclear renaissance, which -- if and when it does occur -- could positively impact the company."

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A close next week below the 5-day price EMA will put ES in short-term sell mode...

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EnergySolutions CEO Steve Creamer to Address Piper Jaffray Clean Technology & Renewable Conference


SALT LAKE CITY, UT -- (MARKET WIRE) -- 02/11/08 --

EnergySolutions, LLC (NYSE: ES) Chairman and CEO Steve Creamer is scheduled to address the annual Piper Jaffray Clean Technology & Renewable Conference in New York City on February 20, 2008, as the lunch keynote speaker.

Prior to the lunch address Mr. Creamer and EnergySolutions CFO, Philip Strawbridge, will present information about EnergySolutions which recently listed as a NYSE company. Below are the times and agenda for bothspeeches:

EnergySolutions Presentation:
Time: 10AM, February 20th
Location: New York Palace Hotel
Topic: EnergySolutions
Presenters: Chairman and CEO Steve Creamer and CFO Philip Strawbridge

Keynote Address:
Time: Noon, February 20th
Location: New York Palace Hotel
Topic: "A Case for Nuclear Power"
Presenter: Steve Creamer EnergySolutions offers customers a full range of integrated services andsolutions, including nuclear operations, characterization, decommissioning,decontamination, site closure, transportation, nuclear materials management, the safe, secure disposition of nuclear waste, and research and engineering services across the fuel cycle.

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Cleaning Up With EnergySolutions

EnergySolutions (ES: NYSE)
By Credit Suisse ($27.56, Dec. 31, 2007)

WE INITIATE COVERAGE of EnergySolutions with an Outperform rating, as we believe it offers investors a unique opportunity to capitalize on the vast amount of dollars required to clean up nuclear waste.

EnergySolutions has become one of the leading government and commercial contractors through a host of acquisitions. Today, EnergySolutions stands as the only company with a vertically integrated service offering reflecting its unique disposal capabilities providing a competitive edge, strong recurring free cash flow, and above-average financial returns.
[Energy Solutions cht]

Nuclear cleanup efforts worldwide are massive. EnergySolutions is well positioned to benefit from a number of growth drivers, including: (1) estimated Department of Energy spending of $55 billion between 2008 and 2012 for decontamination and decommissioning (D&D) of nuclear weapons facilities; (2) projected U.K. spending of $25 billion over the next five years to clean up its nuclear power plants; (3) license stewardship estimated to be a $3 billion opportunity accelerating D&D of nuclear power plants; and (4) another $1 billion opportunity for large components removal.

The potential for nuclear new generation is driving increased pressure to deal with the growing amount of nuclear waste while accelerating existing D&D efforts. Last, as we increase our reliance on nuclear power gen., cleanup efforts will multiply, albeit as a longer-term opportunity for EnergySolutions.

We are projecting 2007 and 2008 earnings per share of 62 cents and 71 cents. For valuation, we use a 13 times enterprise value/earnings before interest, taxes, depreciation and amortization (EV/EBITDA) multiple on our 2011 estimate discounted back, which suggests a $32 price target.

With 16% upside potential, we initiate coverage with an Outperform rating.

-- Jamie Cook, CFA
-- Chase Becker