A different twist on SLX

With nothing else but laser enrichment, the stock is only going to move up from one of two things:

a) Uranium market turning the corner - I can't even foresee prices to stop DECLINING yet alone climbing in the next several years. It will happen eventually, but who in their right mind would go long the spot uranium market right now! Bottom line is the uranium market is several years (at best) form turning the corner.

b) GLE contract for Paducah (6mths) followed by NRC approval (30 months). This is 3 years before GLE sniffs construction work at Paducah.

So between now and the next 3 years, we have NADA. And you need be ok with that.

So here is the alternative view....

The stock market is on fire right now. But that wont last forever either. Some even say the market might correct this year. And Silex is the PERFECT hedge for whenever a correction happens.

The broader economy has very little impact on Silex (maybe you can argue declines in consumption will cause a decline in demand for energy, and thus nuclear; but Japan turning back on the reactors is really the only thing impacting nuclear prices these days).

So while the rest of the stock market is tanking, you can sit secure knowing Silex is going nowhere! Addition by subtraction!

I won't even mention the double whammy of being invested in a stock that has declined 80% over the last 5 years while the Dow has gone up 100%. Think about that for a second. It'll make you sick.

And for what it's worth, the comparison of Uranium price declines to SLX price declines is bogus. Silex's Enterprise Value (basically Market Cap less cash, since they have no debt) has gone down from CAD 650M 2 years ago to CAD 100M today. That is an 85% decline. SWU prices look they've gone down about 30% in that same 2 year span.