I have just finished 2 days of reviewing all my current stocks &...

I have just finished 2 days of reviewing all my current stocks & asking myself the " what if " questions if the US defaults & the effect that would have on each of them.

Most stood up to my theory that although the fundamentals are there & good , the chance that we wil be plunged into another GFC of sorts , throws that all out the door .

So getting onto Alexium , either way defence spending is being cut so that is a negative.

I went back & read the RB Milestone Report dated the 19/5/11.
They have a target price of 39 cents.
The report is a good read but it all revolves around the " ifs " of getting respective contracts.

For what it's worth I wish I was out when it was at 10 cents as my loss wouldn't be as bad.....so for me I am going to hold on in the hope that some of these contracts deliver. As a plus having only 107 odd million shares means it can shoot up quickly.

Some sort of summary copied from that report , to maybe give us some hope , is as follows :

SWOT

Strengths

 Alexium has developed a strong relationship with the DoD which is evident from the fact that it is currently under evaluation for three defense contracts
 Commercialization of RST technology in civilian applications is already underway as the company‟s products are currently being evaluated by well-established textile players such as ITG, SSM Industries and Bruck Textiles
 Alexium has entered into a co-operative research agreement with the DoD for developing further applications of the technology which would keep R&D expenses low for the company
 RST technology has several applications which can be easily applied by using commercially-available chemicals with minimal energy and without using any harmful solvents. This offers the RST a competitive advantage over other conventional technologies
 The company has already secured a three-year, US$8 million funding commitment from Roswell Capital Partners, LLC which would help the company to aggressively commercialize its technology across the world

Weaknesses

 Alexium is yet to record substantial revenues since its incorporation in 2007, which could be due to the fact that it is still in the initial phases of corporate development and the commercialization of RST technology. The technology is in the final stages of evaluation by the DoD and, once adopted, revenues will soon start to come in
 RST technology has limited commercial viability for civilian markets as the technology is currently under evaluation by major textile manufacturers for commercialization
Opportunities
 Alexium‟s technology has a wide range of applications such as technical textiles, filters, fibers and paints which the company could look to capitalize on
 The annual US military textile budget of ~US$2.4 billion would encourage the company to aggressively look for opportunities in this space through partnerships and licensing deals with established players in the industry
 Once RST technology is widely adopted in defense markets, it will enable the company to effectively exploit civilian markets (such as first responders, law enforcement, etc.) as well

Threats

 Alexium is expected to face stiff competition from bigger and more well-established players offering similar products. However, RST technology is unique and was initially developed and tested by the DoD which offers the company a slight edge over other players in the defense market
 Any delay in securing contracts from the DoD could hamper the company‟s growth prospects