If you go to google news, and type in, sapphire screens, you will find 2 new articles on the subject. Both mention GT. I will try to post the link for one of them.
Crisis often forces companies to change, adapt, and hopefully not only survive but thrive as a result. This is a critical juncture where unexpected challenges that really test the experience and skills of the management team. Either you change, adapt, survive and as a reward thrive, or you perish unable to find a solution(s) to changing macro and business landscapes. In the case of life, it becomes extinct.
However, as previously noted, counter intuitively and perhaps paradoxically, it is times of difficulty and fear of becoming irrelevant that forces companies (people) to think creatively and compels them to change. As F. Nietzsche once observed, in master and slave dynamics, where slaves are force to think and become creative to survive when masters’ do not, explain, simply put, changing of fortunes in the long-run for both. In Asia, similar observations are described as “fortunes do not last three generations.”
In the case of GTAT, it also was faced with the changing external environment that threatened to make the company irrelevant by exposing its weaknesses. The combination of company’s weaknesses, namely, concentration of revenue stream by customers, geographic locations, and limited product-line offerings, etc. Not all companies involved in niche marketing have these types of problems. Yet, for GTAT, what could go wrong, went wrong.
However, I am not certain which came first, since GTAT became company of my interest not too long ago, which, changing external environment forced GTAT’s management to realize its strategic vulnerabilities, or it was a part of GTAT’s long-term strategic aspirations to be vertically and horizontally become more integrated business, for example, via M&A, or organic growth, etc. Yet, regardless of sources of motivation, the end result is that GTAT initiated just that, diversify revenue stream via venturing into new revenue generating segment of the business. The Sapphire is one of the more well known of the endeavors and perhaps more to come as a result of strategic acquisitions and R&D, etc.
In the final analysis, I would extrapolate here, based on known facts, GTAT will not only survive as the leading provider of cutting-edge and state of the art provider of solar related equipment but emerge from this crisis driven environment as the provider of other products and services, such as SAP, via strategic acquisitions and continue investment on R&D, etc. As such, I would further opinion here that combination of various factors have created a once in a life time opportunity to acquire GTAT shares at current levels for those with patient minded investors.
At last, it is one thing to have a product that we think everybody should have and another for others to decide they should have, etc. It is even that much difficult when GTAT has over 30M shares working against such outcome. SI (short-interest) is simply a 30M pound gorilla and retail investors and GTAT will need at least equal or perhaps bigger King-Kong to step in on the side of the retail longs before we will see a fair fight, etc. It is the job of the management to give the King-Kong (s) reasons to do so, etc.
-Have you changed your stance because your posting is mixed on the mid and long term horizon of this company. If Gtat is a once in a lifetime opportunity, why on earth would you have a sell time frame of 6-12 months. Makes little sense to me. Makes about as much sense as someone posting that they are holding until stock reaches X amount of dollars before they unload everything, like 5,10, 20, 30 etc.. is some type of magic number.