Summarizing all of the posted information from either longs and shorts, I came to this forecast:
1) No major good news in the next few months.
2) Stock price will stay in the current range and trend lower if no good news out from time to time.
3) PIPE price should be in the range $8 to $10: the sooner the better.
4) At least 1M shares will be issued.
5) After the PIPE, the stock price may temporarily go below the PIPE price as 90% of the cases suggest.
For long term investors, it is a hold.
For traders, time to quit and come back in 3 months to check if any thing is near to take place
For shorts, time to look for something else.
$14: a near term sell
$12: a reduce
$10: good for underpositioned to accumulate
$8: a strong buy
$6: a steal
Thanks for your understanding of my mistake.
In my original post (link below) my question was about the first customer wanting a stake in EZchip.
My thought was that LNOP was doing the PIPE to get money to keep their majority stake in EZ after the next EZ financing round, which was possibly started by a first large customer order.
Hope that helps. Good luck to all, long or short.
Now they have only 5 millions, that is not very much as EZ have to have teams working with future customers and the QX1 (Not a simple task! in spit of their bravado) and NP2.
If you can deliver 20 millions why don't you offer again?
rcmz1 wrote about PIPE:
>Usually a company avoid that kind of finance unless absolutely necessary. <
and I would like to add that in many cases it is done in time frame, when the company can show positive outlook (or very positive).
btw, I offerd LNOP to raise money a year ago, and I wa told that they have enough money till next year, and only then they will raise money.
So, this PIPE is according to the company plans.
Today I don't think they need me.
That can happen.
As to customer, he will ask for a stake in EZ in the coming round, not in LNOP in my opinion.
PIPE is for institutions that handle that kind of things. And I think that they are not interested in technology, only in getting the money back. Usually a company avoid that kind of finance unless absolutely necessary.
Thanks. The absence of any trading seemed odd. I understand why, in a weak market, traders would avoid large spreads and trade on Nasdaq. Perhaps the increased market cap due to additional investment and some positive ez news will help that. Peace, or at least less violent coexistence for a while in your area would be good for both markets, and certainly for the people living there. ar
The low trading is because the stock market here is in a bad time. We just in the end of a horrible teror war, in which most of the world is supporting the terrorists. Above that Israel suffered also from the slow down in hi-tech.
Also there are technical problems, as there is a large spred between the bid and ask, in TASE, an both the bid and ask, are far from the close in NASDQ, so why to buy in Israel, when you can buy in NASDDQ ? Right now, there is no reason. When the recover will come and LNOP will be more solid investment, the Israeli matual-funds (that must invest in Istrael) will buy/sell.
There was another customer identified a couple of years ago. ECTEL (ectx), and ez were planning on working together to develop products. I don't know whether that has gone by the boards, or if ectel, which I believe sells monitoring systems to phone companies, has any upcoming products using ez. Since their stock has been weak, it appears there is no major product announcement anticipated. but the many techs, especially Israeli, are in the doldroms. Looking at tase, it appears there has been no interest in lnop. ar
I admit it was a dream before NP-1 sampling. Right now it becomes closer and closer to reality. However, one thing we should keep in mind: a good product does not mean good sales and earnings. We're only half way to the success.
This stock has a lot going for it. Mo to the upside. Shorts convinced that shorting gilder stocks is easy money. Gilder groopies betting tis one might be the next gilder gem. Plus IBM involvment for validity. New products just being validated and now shipping. No matter what happens they will not announce declining sales of NP1 but if they sell jusyt 1 it will represent a 100% increase in sales.
In reality and in the long run who knows what happens with EZ chip and LNOP and who cares. I see a lot of catalysts for the short term as in a few months to a year. This could be the next KIDE or RMBS and that is how I am playing it. If long term it is the next Intel well I'll already be on board, hopefully.
I wouldn't forecast anything based on information on this board. The company management and private placement investors aren't represented here. I would expect they have more info than us. While I would expect a dip on any formal announcement of a private placement of lnop stock, I agree with the tone of those that expect private placement of money in ez to have the opposite effect, and the announcement to explain the reason ez needs the funding, another plus. But we're just guessing here, forecasting anything should involve more info than I have. ar
You're right! We're all here just gussing.
I find some of the posts on this board very informative and amical. I like this evironment to share ideas.
For example, I learned this possible PIPE from this board instead of company's PR. And it helps a lot to explain the market move.
BTW, we're heading to $14.
I'll give you the comeback on the 4:25... If I smoked you here, in a public forum... there would be witnesses!
[Although its still not as funny as the story I heard about you not being able to make the elephant's trunk rise!]
- Inside joke.
- A Long.