a proper analysis if you can

Does anyone have a brokers analysis from research team that they can share. I have read so many unsubstantiated statements on forums that are worth zilch.

SLX is obviously benefiting from the following factors

i. current euphoria with all things uranium as a result of the shift in thinking to nuclear power being part of the answer to CO2 emissions
ii. agreement last year with GE to develop the SILEX process and pay royalties
iii. current euphoria with electricity from solar energy plus SLX investment in a company that is about to market chips that can be used for more efficient solar energy production

So much for the feel good factors. Now how do we relate those to hard cold cash as in the share price which is a valuation on the future worth of the company.

I think it is worth noting that GE will not produce a pilot plant for the SILEX process until mid 2008 all going well. Following that commercial production plants have to be set up. We are talking long timeframes here and so financial discounting applies for any sensible valuation. On top of all that is the risk of delays or even serious technical difficulties affecting the economics of commercial production.

A few years ago we saw USEC ditch SILEX to concentrate on proven technology ie centrifuge to meet their needs in the immediate future. It takes a long time to establish a new technology and then it takes another long time for people to decommission existing enrichment plants or those already in the pipeline and replace them with the new technology.

As for solar energy I am reminded of the Internet investment craze leading up to the 2000 bust. SLX can profit from selling chips to companies currently developing solar electricity systems ie small volumes but how far in the future is large scale production of the same for commercial systems.

Sure I recognise the current thinking re uranium and the shortfall of the enriched product in the face of projected demand and falling resource from recycled nuclear bombs. I recognise the potential for the solar electricity chips. But what I want to know is how to value the company in the face of these conflicting plus and minus issues. Is the company really worth seven dollars on an ongoing commercial basis or has market sentiment overshot yet again and if so by how much.