"Newly expanded sapphire materials business with Apple is expected to add recurring revenue base to business" - quote from Investment Highlights present in GTAT Corporate Overview, August 2014. Anyone care to venture a guess as to what newly expanded sapphire materials business means? There is more to the Apple-GTAT marriage than meets the eye, or the press for that matter.
Sentiment: Strong Buy
You have done well and have shown you have great discipline. Don't listen to others. Sounds like you bought when I did, right after AAPL deal was announced and you are up 100%. I am in the process of reducing some of my positions (in other stocks) to increase my cash balance to a similar level (as a percent) you have.
Be prepared for the stock to plunge if sapphire is only available on limited iPhones. That will be a perfect time to buy more. Keep your eye on GTAT meeting guidance and future earnings estimates. I have said it before. We are better off in the long run if GTAT can meet or beat estimates with limited iphone sapphire screen in upcoming release because that will mean larger future profit potential as sapphire increases to all devices.
Also, if sapphire is on every iPhone, price will shoot up as shorts cover and others who are on the sideline jump in. I will take some profits then and get back in when price settles back down. Technically speaking, price should not change until next earnings are released. Lots of speculators but GTAT has given their forecast and they already know about the iphone sapphire screen situation.
I had 40% return on my portfolio last year so I'm not interested in advice from others unless they had a better return.
Sentiment: Strong Buy
Folks who own options sometime short, if stock goes up the option is exercised and stock is delivered. Also long-term and short term capital gains, based on tax rate.
Institutions also short stock and dump before and around the date of option expiration. GS traders get 250,000 or more bonus.
Derivatives written by big players, when stock was lower or higher price. It is long term option or leap.
If stock makes a new high with very high volume then shorts cone into play, provided stock make gaps.
GTAT is trading below new high so there is lot of overhead supply.
Average daily volume is above 9,000,000 so it may take 10% move to cover the shorts. the company will take more than a few years before it makes money. By that time there are other research material which may effect price and demand.
Always have a price and % you can afford to lose, and keep in mind it is material made in a factory. INTEL comes with new chip every year, but stock has lot of shorts and has not made a new high.
I originally bought at 12 in 2011, bought more down to 7, and then watched it go all the way down to the lows in the 2's and was chicken and did not buy anymore until it came back to 7...I;ve been diversifying into leaps lately, but my most recent purchase of the stock was at 17.50...I have tremendous faith this is the launching point..buy it now, buy as much as you can...
I love it when I make a simple factual post with no opinion anywhere in it and get downvoted. lel. It's like...please do not confuse me with facts. I want to keep believing GTAT is "off the radar".
Really, it's not that hard. Go look at the volume in other stocks. Even popular stocks like TSLA NFLX SCTY FB or w/e. They're all around 1-2% of float per day. GTAT is over 5% of float per day. I don't mean on one particular day or another, I mean at average, it is heavily traded.
with just 50 of the 60 AFS furnaces running and accounting for 50% loss or waste of original 220 pound boule produced. I wonder how many iPhone 6's 75 Tons would satisfy? With the Mesa plant now ramping up with 2600 AFS furnaces the production will be Massive to supply Apple. If Salem plant can average 7.5 tones of sapphire a month with just 50 AFS's, then Mesa with say 2500 AFS's running will produce about 375 TONS a month of Sapphire accounting for 50% waste. Now that is a LOT of iPhone 6 screens.....
They hedge funds have successfully traded the 13 to 20 range several times now based on this rumor. Neither, GTAT nor AAPL have ever publicly commented on any type of screen shortage, meaning it is nothing but bull. I've yet to see anything refuting a sapphire display on both I phone sizes and now what appears the on time release of the I watch. They have been making screens for nearly six months. Now, is the time we've been waiting for as longs.
Calm down man, Unless you're day trading you probably shouldn't sit and watch this all day. We will have up days and down days. You think this should be green everyday.