Dutton Associates updates its coverage of SES Solar (OTCBB: SESI) maintaining a Speculative Buy rating and a $2.10 price target. The 28-page report by Dutton senior analyst Sally H. Wallick, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.
SESI researches, develops, produces, and installs solar energy (photovoltaic or PV) products, including PV modules and roof tiles, with a special emphasis on high-quality products that can be architecturally integrated into new or existing structures. SES's business plan is based on consolidating production in a new, specially designed manufacturing facility near Geneva, Switzerland. The new plant, which is under construction, will be fully automated and will incorporate innovative manufacturing techniques expected to result in lower labor costs, greater operating efficiencies and higher production volumes. SES reported third quarter revenue of $90,240, down from $148,805 a year earlier, and a quarterly net loss of $400,595 or $0.008 per share. Its balance sheet highlights include cash and equivalents of $3.5 million, working capital of $1.6 million, total debt of $1.8 million or approximately 41% of equity, and shareholders' equity of $4.5 million. During the rest of 2007 and in 2008, we expect management's focus to be on building the new plant and manufacturing prototypes of new products, having them tested and licensed, and commencing their production and sale on a limited basis. Therefore, we do not expect quarterly results to be indicative of the Company's long-term potential. Given this scenario, in the near-term, we believe that SES's share price may be driven by the completion of Company-specific milestones, as well by as external events that affect investor perceptions of the solar industry.
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Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received US$65,500 from the Company for 8 Research Reports with coverage commencing on 10/16/2006. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.
