From their presentation I see they call transportation mature and ag as growth. But I have another question, why do they have two unrelated businesses, one that is slow and one that is fast? The growth rate is 8-10% per year and not higher because of the transportation division not the ag division.
The article in The Fabricator under the technology tab on TeraDiode website seems to have a decent explanation of it. So far as I can see, the wall energy efficiency is about the same at this point in time for this technology and fibre laser - ~40%. But you raise a good point, it's a fast changing technology/industrial company where you have to believe that management is on top of it. The most sinister problem here is bias/commitment to your current product if it turns out something better comes along. I hope management is flexible - either that or invest in TeraDiode if it goes public!
Well he better get on it pretty soon, the price is only going to get higher the longer the wait. Unless of course only the particular method is patented, in which case they can just develop their own.
As far as my research on the net, IPGP is involved in both direct diode and WBC and in fact has the highest power fibre laser from IPG (50Kw) uses WBC. Search the web for the slides from University of Sussex called High Power Lasers & Systems.
As long as management has control over the bank account to spend, this is going nowhere.
Imagine you own a bank account and do not have access to the funds, what is the worth of that account to you? I'd argue close to zero unless you can sue them to get control.
Run a cash-flow analysis on a company with a negative burn-rate. The answer to ultimate value is zero.
Same with the argument "far more likely that...". You can't estimate anything on long shot lottery tickets. Anything times zero is zero.
The only scenario this goes up is a) reduce spending close to break even or b) stop this business and return money to shareholders.
Anything else, this will not return much and investors will waste time - it's called opportunity cost, not only what you made but what you didn't make somewhere else.
Here's what will happen, they will go to return the cash to shareholders and the government will force this to stop pending resolution of lawsuits. You won't even be able to get your cash out in a liquidation! I don't trust the governments of these Western communist republics.
If they make acquisitions with their 425 million existing debt to keep adding to it they will be proven to be exactly the same type of Valeant class dufuses!
unless you have a debit card attached to their bank account to make withdrawals, the discount seems reasonable.
How do you collect money from a termination fee when the buyer is in a communist country and decides they don't want to honour the contract?
With Theranos gone, Alere is looking more valuable as the last man standing in point of care.
I don't think they can buy shares in the open market while the merger agreement is in effect. That would be highly illegal.
I was tempted to add at 82 and change but passed .. How do you get comfortable with China's 1/3 contribution to sales & profits in a nation that might be at the peak of a capital spending cycle?
Anything coming out of Canada is a disaster. They know business like they know hot weather in winter.