SESI SES Solar Inc (CE)

Dutton Associates updates its coverage of SES Solar (OTCBB:SESI) maintaining a Speculative Buy rating and a $1.25 price target. The 11-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 reported 2007 revenue of more than $1.3 million, up from $129,275 in 2006, and a net loss of $1.52 million or $0.027 per share, versus a 2006 loss of $1.24 million or $0.041 per share. Year-end balance sheet highlights include cash of US$3.4 million, negative working capital of $5.9 million, total debt of $6.2 million, and shareholders� equity of $4.0 million. Management expects the negative working capital position, which resulted in part from an increase in short-term debt to $6.1 million at year end from $410,000 a year earlier, to be temporary, since it anticipates restructuring the Company�s financial arrangements into long-term loans with more favorable terms. 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. The Company�s revenue should be modest until the new plant is fully operational in 2009, and we believe that its long-term prospects are bright. About Dutton Associates 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.