SESI SES Solar Inc (CE)

Dutton Associates updates its coverage of SES Solar (OTCBB:SESI) maintaining a Speculative Buy rating and a $2.10 price target. The 10-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. SES Solar was formed as a result of a September 27, 2006, reverse acquisition between SES and Societe d�Energie Solaire, a Swiss-based company that 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. We believe that SES is well positioned to benefit from soaring demand for solar energy in Europe and worldwide once it consolidates production in a new plant in Geneva Canton, Switzerland early in 2008. This facility will be fully automated and will incorporate innovative manufacturing techniques, resulting in lower labor costs, higher quality electrical contacts, greater operating efficiencies, and higher production volumes. Management expects to complete the plant by the end of 2007 and to initiate production in the first quarter of 2008. During 2007, we project that SES�s revenue will be modest, as the Company focuses on building the new plant and preparing to bring it on stream, and that it will report a small loss for the year. After that, we expect a relatively rapid ramp-up in production volumes, resulting in fast-growing revenue for several years. We believe that SES�s share price may be driven in part by the completion of Company-specific milestones in 2007 as discussed in our report. Our current estimate of revenues in 2008 is $18 million. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 145 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$35,000 from the Company for 4 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.