Compare GTAT's backlog, income statement, and balance sheet to other companies it's size. GTAT beat's 99% of them.
$1.8 BILLION in backlog. In growing LED business. World leader in wafer ovens, etc.
GTAT is unique in what it does.
I'm LONG on GTAT. GTAT should easily be back up to $16 within on year or less.
Although everything you say is true and I also believe GTAT is a great small company, everything you say has been true for a year and the stock has gone from $17.50 last July to the present level of about $5.
The same arguments you make have been made numerous times by numerous posters during the last year and the stock has declined the entire time.
Although I am a believer in fundamentals, the strength of a company, what prevails is the market sentiment of the big Wall Street money, no matter how irrational. Wall Street is sour on the entire solar sector and puts any company doing significant business in the solar sector in the same basket of stock lepers. They do not separate individual companies based on their individual merits, merely paint all with the same broad brush.
The stupid tariff decision by the short-sighted U.S. government only made matters worse for the solar industry, as grid parity is the key to the success of solar energy, and the U.S. government just set grid parity back significantly.
I believe that with time GTAT will rebound, fundamentals will prevail, but when? When will Wall Street sentiment about solar change? GTAT's LED business is the most promising hope for a PPS rebound in the near future.
I believe your $16 prediction any time within the next year is a wet dream. False hope needs a dose of reality, as painful as it may be.
Good post Skip. While many companies tied in with solar may not even be here in 18 months, survival is number one on the agenda for most. GTAT has the LED advantage, but that industry is not without some problems as well.
The current PPS is probably in the correct range. The biggest advantage we have over "big Wall Street money" is time. We can afford to buy early without having to worry about quarterly performance. We always hear things like "buying ahead of the pack", "ground floor", ahead of the crowd", etc. This may be one of those opportunities. We made a nice little jump in recent weeks. Barring any changes, we shouldn't fall much below this level. However, just because we own at these levels doesn't mean the pps will start to rise now that we are in. It's an excellent time to watch closely and see if we should add, or dump. If things unfold the way we think they will, the upside will take care of itself.
I've researched many companies. GTAT is one of the best profitable companies I've seen, making a good profit, huge backlog of work, and growing. I agree: easy triple in one year! I have many shares of GTAT and am looking forward to a healthy profit myself on GTAT!