Could it be Canacord? Silly little game and retail takes it in the kiester
ok stock guru ::)) company lost million dollars who give a rat about an upgraded. The money are in the Sapphire crystal and recently acquisition. the funny thing is you never said anything about it. Is that what you afraid? The stuff is only behind diamond and can be on countless applications. Let see what happen in a year or two.
I think you make a very fair point. GTAT is burning cash. They rapidly raised debt levels to fund their negative cash flow. Now they file a shelf offering, because they want to raise more cash through equity. As soon as they file that shelf a brokerage "upgrades" them on speculated rebalancing of supply and demand. None of that has any certainty and it does little but create investor frenzy that they can do a secondary into.
At the end of the day they have to get to cash flow breakeven (after capex) and stabilize the bleed, or their market needs to shift in a huge way (which it has not done yet). If those things do not happen, then bleeding cash translates as lower and lower stock prices six months out.
Last I checked they had a few hundred million in the bank. Investing in R&D and strategic acquisitions is the right kind of 'cash burn". It represents investment in the company's future revenue and growh by having #$%$-kicking products at the ready once their clients are ready to pull the trigger. There is no doubt GTAT has cutting edge technology. And more is on the way. They are not #$%$ the cash away. They have also downsized where appropriate to trim and bloat to conserve. Also wise. They company cannot control the broader market, credit markets, the global economy, or problems with cyclical oversupply. What they can control is product innovation, quality, cost efficiency, and self promotion. I think they have their eye squarely on the prize.
They are expected to post a profit this quarter and for the year. By definition, they are making money. Any equity sale would be for a strategic acquisition which they do well. Talk up your short position all you want, but its a tired old song and worn out around here.
Improving investor sentiment is hardly a reason to upgrade a target price. All of gtats gap ups have closed within 3-7 days. 4 days would be July 3rd which is a half day of trading and closed thursday. Probably short attack on low volume to close the 30 cent gap next week while people are on vacation riding today's excitement. Current trend channel says a High of 4.29 tomorrow unless momentum is lost and it breaks 4.02 and heads to 3.81 (this week's pivot point)
Need to close over 4.29 on over 5 million volume and confirm the breakout Monday with follow up momentum then a new bullish trend would begin when the low of any day is over 4.26.
My bet is the former unless a positive revenue pr comes out. If one of those was coming I doubt they'd filed the shelf. Just saying, short term commentary.
The reasons you stated are what drove it into a multi-year downtrend in the first place. We discussed this through while it was languishing in the $2s and $3s. cash bleeding - company forced to do a debt to equity swap is a real possibility. This is exactly why it's trading so cheaply for a company with this kind of technology and potential upside. In truth, it is very hard to determine a fair price for this right now. If you think it is overpriced at $4, I can't really say with confidence you are wrong.
Anyway, I upvoted. At least your post has some actual content, rather than the senseless bashing in most of these other posts.
how so? explain yourself. Both the shelf and the upgrade are publicly available knowledge right now and priced in. The stock has been trading at a ~$3.5-$4.5 range for the past two months, it is now close to the middle of that range. Who's gonna "take it in the kiester" and why?
yeah......you just have to take these upgrades and downgrades for what they are "temporary hype." Just take a look at HIMX who basically had the same story with the shelf offering and an upgrade at $7.10 level.....now look where it is. I would have been more interested if some actual news came out for this stock.