Silex Systems Limited

Disappointing update: Silex Systems Limited (ASX: SLX) is a research and development company whose primary asset is the SILEX laser uranium enrichment technology, originally developed at the Company’s technology facility in Sydney, Australia. Recently, Silex Systems Limited informed its shareholders that it has decided to abandon the acquisition of a majority stake in GE-Hitachi Global Laser Enrichment LLC (GLE), the exclusive Licensee of the SILEX laser enrichment technology. The shareholders were disappointed by this outcome which was mainly due to the continuing decline in the nuclear fuel markets and it was due to the tragic event of Fukushima in 2011. Further, the company was not able to resolve the issues related to the GLE restructure and the associated cash burn. After this, the Company gave a notice with respect to termination of the Term Sheet which was signed in 2016 (and as amended on 31 August 2017). There were other challenges in GLE restructure and business case, which Silex was unable to resolve. After this, the Company will lose many opportunities as it will not be able to participate in the US nuclear fuel market. But, the Board will continue to assess various options and actions which are considered in the best interests of shareholders, including appropriate steps to repatriate the technology from the US to the Lucas Heights facility. The stock price has been falling on ASX, down by 91.76 per cent in 5 years as on July 05, 2018. The stock was down by 4.54 per cent as on 6 July 2018 and recorded market capitalization of $37.5 Mn. Hence, we can avoid the stock, which trades at $0.210, as of now by looking at the aforementioned shortcomings.


Nuclear Power Growth (Source: Company Reports)
 

iSignthis Ltd

Appointment of Non-executive Director: iSignthis Ltd (ASX: ISX) has recently appointed Mr. Christakis (Takis) Taoushanis to the Board as a non-executive director as he has rich exposure in some of the world’s largest banks. This includes serving at Continental Illinois National Bank of Chicago for four years, the HSBC Group for eighteen years, with twelve of those as the Managing Director of the Cyprus subsidiary, and eight years as the Chief Executive Officer of the Cyprus Development Bank. Resultantly, the group has also given rights to Mr. Taoushanis as its representative to the European Cards Stakeholders Group, of which the Company was a founding member, and in which Mr Taoushanis is a full voting board member. The management expects that his presence will bring international exposure thus helping to execute the group’s next phase strategy towards offering further services as a neo-banking institution focused on regulated businesses in the AML sector.
Besides this, the group has become a SWIFT user which will enable the identity verification and payment services company to issue International Bank Account Numbers (IBAN). In addition to this, the group will further benefit from SWIFT message interconnectivity with over 11,000 others financial institutions globally. Moreover, the group has also entered into the certification arrangement with a Eurosystem Central bank for a Euro based account. We expect that this new agreement will allow its corporate and merchant customers to facilitate payments from one IBAN account to another internally at low service cost.

The company enjoys its cash position with zero debt status which will support to execute growth plans without affecting the financial performance of the company. The current ratio substantially increased from 6.87x to 13.13x in 1HFY18 as against of previous half. Meanwhile, the share price has risen 12.90 per cent in the past three months but was down by 2.78 per cent in the past one week as at July 05, 2018. Based on aforesaid facts and current trading scenario with some volatility, we give a “Hold” recommendation on the stock at the current market price of $ 0.175.


Growing Operating Revenue (Source: Company Reports)

 
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