silex projects making good progress, page-3

There are two concerns for me from today's release and no good news.

1 - Test Loop is now to be completed in late 2008 / early 2009. We have always previously been told late 2008. So that constitutes a possible delay in my view.
2 - Same deal with Fibrebyte. Now "pending commercial discussions with interested third parties". At the AGM I believe we we lead to understand that this would happen more quickly.

All the rest has already been provided to the market numerous times. This is simply the company's attempt to alleviate the concerns of shareholders and underpin the falling share price. In the absence of any "real" and positive news however, this approach won't work.

I hold no SLX shares but remain keenly interested in what they're doing and how they're going.

There remains no compelling reason to hold the stock right now. Today's announcement suggests that we are most unlikely to get any further news until the end of February - a full 6 weeks away. In the meantime the shareprice will probably drift lower.

I pose a gloomy outlook, but continue to believe that if you hold un-levered stock and can continue to hold it long term that you will be rewarded. SLX just needs to get past the current market jitters and past the point where commercialisation through the GEH is assured. Then analysts will start to genuinely value the company on projected earnings. At the moment those valuations are not being undertaken as there are no guaranteed future earnings and insto's / analysts do not normally like to attribute earnings risk levels to companies at the speculative end of the market.

For me, 2008 at best is going to be a sideways year.

J.