slx on the move, page-8

Hi Elie,

Regarding SLX, I have previously commented on the stock (having held it, in various stages, since September 2002).

I first started holding SLX following its decision to acquire Photonica.

I am a great fan of photonics, and sit in a non-executive capacity on one of the CRC Photonics' committees (the Audit Committee, actually, along with Alan Coates, John Brady, and Len Hinde).

As for some of my previous comments on SLX, I offer the following (by way of a repeat posting).

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Subject re: top value picks for 2003
Posted 28/12/02 13:17 - 276 reads
Posted by Grant62
Post #12227 - in reply to msg. #12223

More specifically, my primary 2003 selections are as follows:
#1 pick for 2003
- SLX (to go to $3.50+ by year-end).

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Subject re: 2.8m single trade
Posted 09/10/02 12:16 - 11 reads
Posted by Grant62
Post #45329 - in reply to msg. #69567

1)
I liked the Photonica transaction /acquisition.

Photonics is an area of scientific activity and behaviour in which Australia is taking on a high profile scientific and business focus.

For example, the Federal Government is supporting the Australian Photonics initiative out of Sydney which has already led to the formation of the Redfern Photonics comemrcialisation arm (in which Deutsche and other major investors have started investing significant dollar amounts).

Photonics is connected to the communications industry (in particular, to optical communications). In this regard, think switching technology, and using directed light, or planar waveguides, as a form of switching pulse.

2)
SLX's current research programme is involved in testing many different alloys /metals /silica (currently, heat retention, transmission is a deterrent to current form silica treatments). I was, therefore, attracted to the carbon and zirconium enrichment tests that are currently being carried out.

3)
I took a close hard look at the mid-year USEC announcements and considered them to be prudent in the making, but unchanging in their outlook (ie: nothing fundamental has changed and further collaboration with, and adoption of the Silex technology, by USEC is, in my view, very likely - even though this was not entirely understood by the market).

4)
I liked the $41m in cash reserves (ise: cash backing of $0.31c, and NTA of $0.40c).

5)
I liked the way in which SLX's research programme is essentially being underwritten by the Government, and by co-participants.

6)
I liked the way in which SLX's share price is now devoid of any risk premium (ie: on account of technology failure) having since declined from the high $3s following the original USEC announcement to the market.

7)
I liked the way in which Australian R&D is either being collaborated upon, or exposed to, the international scene (and from which international interest is being drawn).

8)
I also liked the upside being suggested by UBS Warburg despite its role as house broker.

Eddie, my reasons are essentially in that order. But the Photonics exposure is, for me, an obvious reason.

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