I believe GTAT will not have enough income to pay their off their added $587M debt to AAPL , especially in 5 years. This means AAPL will foreclose on their operation that is already in the AAPL plant in Mesa. If GTAT cannot pay their debt they will be faced with BK & that is where AAPL will assume their operation at Mesa for less than $.30 on the dollar. Stockholders will be left holding the bag, but not insiders that are selling their shares & the CFO who is not only selling his shares , but also leaving for the same reasons. I predict following the upcoming ER more significant GTAT insider selling will take place because the insiders don't want to be left holding the bag like the stockholders when the squeeze to BK takes place.
My guess is that AAPL may have the $587M secured by the improvements being made to the Mesa plant and AAPL will not need GTAT. It is an easy hostile takeover by APPL.
DJ, basically your scenario might be put to the test if sapphire demand fails, which can only realistically happen if sapphire as a technology fails. And even then, you assume that other GTAT product lines couldn't extend runway. You also assume that private equity, ibanks, and investment angels couldn't help raise a round or two of funding.
I find it hard to believe Apple would risk even $587 million on a technology that won't succeed. Suffice it to say, if the technology works, it will generate demand and, hence, revenue. I think you know the implications of growth and cash flow...and the leverage this creates in servicing debt, no pun intended.
I believe wrong way Gonzales, aka dj is none too happy with his last sell of his GTAT shares. He will now try to create FUD in the minds of steadfast longs. He's a persistent dolt who should realize by now that we simply laugh off his dumb posts as a desperate basher looking to buy in lower.
It's sad and pathetic but the fool can't stop himself.
I know there is a Dumb and Dumber sequel coming out soon. How about they call it Dumb, Dumber and Dumbest.
I know a perfect part for dj and it should be easy for him even if he never acted before.
it is a prepayment not a loan. gtat always collects prepayments. gtat collects interest on any unspent balance, not apple. it only has to be paid back if gtat does not deliver that amount of goods to apple.
How pathetic you are, for the newbies here......
Lets see what you posted on the 10th of February (price above $11)..
"Shorts are getting squeezed again today so far
by djhmk2 • Feb 10, 2014 10:26 AM Flag
Shorts have these items in their favor :
* Top 3 insiders have sold over $5.2 m quite recently recently [....]
No positive earnings
Enormous debt of $587 M payable within 5 years (this will lead to dilution again)
CFO leaving in March for a reason
Business 90% dependent on one single vague contract
Gap to close at $9.57 following this squeeze
Guidance in 4Th quarter is the worst in a long time
AND THEN MOST IMPORTANT - DJ: "All these seem to get negated by their one contract when things get reiterated with the AAPL deal. I sold 59% of my long position this morning."
You are really the most sad pumper and dumper ever....
Dutchman : I would rather warn investors of this mess they are in with GTAT. CFO's do not generally leave a booming operation, they leave before the stockholders see what is happening to their investment going down the tube.
This is just a shrewd takeover for pennies on the dollar that the APPL executives and attorneys got GTAT executives to sign. It is no wonder why GTAT refuses to reveal details of their contract that proves they sold out stockholders of GTAT.
Watch for much more insider dumping following the ER when their selling window opens.