Something is definitely out of wreck! RBCN's market is around 43 percent of the GTAT but GTAT's annual sales is about 10 greater then RBCN. I know this is a crude and too simplistic comparison but both companies are losing money, so it's not like RBCN is profitable, etc.
Thus, in a worse case scenario, if things get really bad on the revenue side, GTAT can still right size the operations to stay profitable and investment community will reward the company for staying profitable by way of higher valuation, etc.
When it comes to G. glass from GLW vs. Sap. from GTAT, it may present a good opportunity for GLW to acquire GTAT if that's what shareholders wish. The only question is whether the premium will be high enough to satisfy long-term GTAT shareholders, etc.
Yet, assuming that pretty much things go according to what GTAT's management laid out during earlier CCs, I would venture to say here that pps could easily double from current share price in short order--a reward for current investors willing to take that risk, etc.
However, if SAP and Solar related business start running on all cylinders, then I can't see why GTAT could become a 10 bagger from here (27.50?). As long as GTAT is keeping up with the R&D and stay ahead of the competition, I am comfortable in investing in GTAT.
GTW, anybody know when is the 1st qtr 13 ER usually comes out? No warnings of any kind so far, so I would take this as a positive development, etc.
I am looking for more than a double from here for the risk we are taking.
And RBCN trades where it trades. It was a nice way up from $5pps after earnings. I am out of RBCN now. GTAT needs the big money to take their foot of the break and let the price climb so we don't all keep second guessing ourselves buying more at the floating bottom.
Yes, it my opinion too that GTAT has a potential to become a multi-bagger but it has to double before it can triple, etc. However, I think it is important to give it enough time to play itself out. I am thinking shorts are planning to cover if and when there is a correction. Yet, as long as the fed is pumping 85B a week into the market place and the world being what it is, I believe that many wants to park their money in the U.S. market for different reasons, etc.
Furthermore, many stocks in many sectors has gone up quite a bit and although solar sector has been the step child for quite some time, IMO, at current valuations and industry cycle, more and more investors are starting to look for underinvested and undervalued sector. IMO, solar sector is one obvious undervalued and perhaps underinvested sector, and having huge short interest could be pretty explosive when it happens, etc.
It doesn't matter what anybody says, I am definitely accumulating GTAT for 6-12 month horizon and beyond. Thus, I am looking at every dip as an opportunity to add to my current position. My first buys of GTAT for this time around was at 3.04 and 3.01. Since then, I added 4 more time of very meaningfully shares. I continue to do so as long as opportunity presents itself, etc.