Stock Alert for Lightbridge Corp. (LTBR)

Lightbridge Corp. (NASDAQ: LTBR)

Lightbridge Corp. (LTBR), formerly Thorium Power Ltd., is a provider of nuclear energy consulting services and a developer of nuclear fuel designs. The Company’s consulting services focuses on providing advice to international commercial and government-owned entities in countries with nuclear energy programs. The Company is engaged in development of thorium-based nuclear fuel designs. During the year ended December 31, 2009, the Company had provided all of its consulting and advisory services to the United Arab Emirates. Lightbridge provides integrated advice across a range of areas, including nuclear reactor procurement and deployment, reactor and fuel technology, international relations and regulatory affairs. The Company’s wholly owned subsidiaries include Thorium Power Inc. and Lightbridge Power International Holding LLC.

Lightbridge Corp. was founded in 1992 and is based in McLean, Virginia

Share Statistics (24-Jun-10) FY

2007

FY

2008

%

Chg

Q4 2008 Q4 2009 %

Chg

Symbol LTBR Revenue, $Mn 0.00M 22.22M 100.0% n/a 2.13M n/a
Current price $9.75 Gross marg. n/a 50.1% n/a n/a 39.0% n/a
52wk Range: $13.00-5.01 Oper. Margin -n/m -13.7% n/a n/a -97.2% n/a
Avg Vol (3m): 42,625 Net margin -n/m -12.9% n/a n/a -97.7% n/a
Market Cap. 99.14M
Shares Outst. 10.2M EPS, $ -1.16 -0.29 75.0% n/a -0.20 n/a

Source: Reuters.com, SEC Filings.

Financial Summary

LTBR recently reported revenue of $2.4 million for the three months ended March 31, 2010, compared to $2.9 million in the comparable period a year ago. Operating loss for the three months ended March 31, 2010, increased slightly to $1.7 million, compared to $1.5 million for the three months ended March 31, 2009. Excluding the impact of non-cash items, adjusted net loss for the three months ended March 31, 2010, would have been $0.8 million compared to adjusted net income of $0.2 million for the same period in 2009.

Discussion of Revenue and Cash Flow

The Company’s operating revenues are derived primarily from the Company’s consulting and strategic advisory services for foreign governments planning to create or expand electricity generation capabilities using nuclear power plants and are used to help fund the continued development of the Company’s nuclear fuel design technology. Revenues are primarily generated from the five-year consulting contracts in place in the United Arab Emirates (“UAE”) with two separate entities, the Emirates Nuclear Energy Corp. (“ENEC”) and the Federal Authority for Nuclear Regulation (“FANR”).

As of March 31, 2010, the Company had approximately $2.0 million of cash and cash equivalents and approximately $4.4 million of working capital. As of December 31, 2009, the Company had approximately $4.5 million of working capital.

Financial Strength (24-Jun-2010) Company Industry Sector S&P 500
Quick Ratio (MRQ) 3.79 0.32 0.37 0.81
Current Ratio (MRQ) 3.79 0.39 0.44 0.97
Long-Term Debt to Equity(MRQ) 0.00 105.63 99.30 133.54
Total Debt to Equity (MRQ) 0.00 126.43 118.18 199.10

Source: Reuters.com, SEC Filings.

Analyst Consensus

There is no recommendation data at this time.

Source: www.ft.com

No consensus analysis data available.

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=LTBR.W

Investment Highlights

LTBR recently announced a major technological breakthrough that has the potential to transform the nuclear power industry. LTBRs new fuel technology based on a proprietary all-metal fuel assembly design could reduce both initial capital costs per megawatt and annual operating costs per kilowatt-hour of nuclear power, making it more competitive with other forms of electricity generation while contributing to a significant reduction of CO2 emissions.

It is expected that LTBR’s all-metal fuel technology could be applied to currently operating or new light water reactors as well as small modular reactors that provide the same benefits as in larger commercial nuclear power plants. It is also highly synergistic with fast reactor fuel designs.

One of the key benefits of the LTBR-designed all-metal fuel technology is a potential 30% increase in power output per reactor compared to reactors using standard oxide nuclear fuel. This could translate into additional revenue for a 1,600-MWe light water reactor of up to $250 million or more per year, or nearly $16 billion over a 60-year expected lifetime of such reactors. This increased power output is expected to lower operating costs on a per kilowatt-hour basis and strengthen the economics of nuclear power versus other forms of power generation. In addition, currently operating light water reactors could also take advantage of this power uprate by switching to LTBR’s all-metal fuel design.

The LTBR-designed all-metal fuel design would provide enhanced proliferation resistance and result in up to 23% less volume of used fuel per kilowatt-hour of electricity generated and is expected to have improved fuel operation compared to standard oxide fuel.

As was previously announced, on June 10, 2010, Idaho National Laboratory approved a Texas A&M University-led joint proposal with LTBR for irradiation testing of this kind of metallic fuel in the Advanced Test Reactor. The fuel demonstration in a test reactor environment is a key stepping stone to demonstration and deployment of this fuel in commercial Western-type light water reactors.

Over the past decade, LTBR has completed significant development and testing relating to this all-metal fuel technology. In particular, Lightbridge has evaluated key operating parameters under various operating conditions. Some of the key parameters that were evaluated include: melting point, fission gas retention, surface heat flux, fuel swelling, moderator-to-fuel ratio, cladding corrosion and others. The results of the evaluation performed to-date indicate that the fuel performance would meet applicable criteria for safe operation.

LTBR also recently announced Kathleen Kennedy Townsend as the Company’s Strategic Advisory Council. Townsend will advise Lightbridge management on nuclear diplomacy, policy issues and non-proliferation solutions.

Townsend is an honors graduate of Harvard University, and received her law degree from the University of New Mexico. She has received 12 honorary degrees. A member of the bar in Maryland, Connecticut and Massachusetts, she is also a certified broker-dealer.

Source: http://www.ltbridge.com/

Technical Analysis

Source: http://stockcharts.com

LTBR is trading above its 13-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

LTBR’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility. Additionally, LTBR is trading above its upper Bollinger Band. Relative to recent price action, the stock is currently overextended and due for either a pause or retracement.

The MACD for LTBR currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above zero, which implies that the underlying moving averages are trending higher.

Comparative Analysis

Company Name Ticker Price per Mrkt. Cap. P/E P/S
June24-2010 symbol Share, $ $ Mn 2010 2011 2010 2011
National Technical Systems Inc. NTSC 6.90 65.80M 10.87 n/a 0.49 n/a
GP Strategies Corp. GPX 7.59 141.27M n/a n/a 0.65 n/a
Luna Innovations Inc. LUNA 2.16 27.85M 1.43 n/a 0.80 n/a
Business Services Median 6.15 n/a 0.64 n/a
Lightbridge Corp. LTBR 9.75 99.14M n/a n/a 5.29 n/a

Source: Thomson Financial

Insider Trading Activity

NET SHARES PURCHASE ACTIVITY

Inside Purchases – Last 6 Months

Shares Transaction
Purchases n/a n/a
Sales n/a n/a
Net Shares Purchased (Sold) n/a n/a
Total Insider Shares Held n/a n/a
% Net Shares Purchased (Sold) n/a n/a

Net Institutional Purchases — Prior Qtr to Latest Qtr
Shares
Net Shares Purchased (Sold) n/a
% Change in Institutional Shares Held n/a

Source: Yahoo Finance

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