This is peculiar. Apple owns the building an GT puts 3000 furnaces into it which belong to GT. Apple funds $578M for GT to build the furnaces and GT pays them back with sapphire/sapphire services. But then GT has 3000 of their furnaces stuck inside an Apple building. I don't get this part.
One more comment: Someone was trying to spin the change in the offering blend to more bonds instead of stock as a bad thing. That is incorrect. Poor companies that have no money do huge dilutions to pay for their existing debts instead of taking on new new debts. GTAT switched the mix to more bonds because they are confident in their ability to pay the debt and diluted less. I do see BDCs issuing shares all the time but they use the proceeds to fund additional investments. GTAT obviously needs the money for something and I would like to think it's for growth/investing in their future as opposed ot just paying bills due to a high cost structure (THAT is never a good thing). I think we have a company here with some very valuable technology/IP but with a question on their ability to control their operating expenses hence the very bipolar investing community; very high short interest yet trading near the top of its medium-term ranges with high optimism for the future.
"but massive dilution is NEVER good. Sometimes necessary, but never good. There was no way the stock stays above $10 with 2 offerings 3 days apart. "
It was one offering. It's just the mix changed between those 3 days. The dilution was somewhat small, I'd say, from a % standpoint.
They filed a director-level (or senior level team) bonus program last month which calls for 3 payments for staying with the company: the payment dates were, if I recall, something like 11/1/2013, 2/1/2014, and 7/1/2014. Another poster here thought that was precisely indicative of a sale.
Fyi, there's very low short interest in VPCO and whom are you referring to as their competitors and why would their stock price matter? stock price is meaningless. It's market cap.
I was too high on my expectations. It seemed that 1500 headcount reduction could result in about $100M of annual savings but it looks like they are targeting about $40M to $45M of annual savings by the end of the restructuring - around July 2014. EBITDA breakeven is the 1st goal, based on $440M of annual sales. This does not take into account any increase in sales and I would like to think they're being conservative on the savings because it would seem to me that a headcount reduction of that large would EASILY result in greater reduction than $45M of expense.
Ferrari_jeff: Unreal. You're a lying sack of #$%$ just like Moller.
This is huge. With the prior wording that I saw, it seemed like GTAT couldn't supply ANYBODY else with the ability or materials to do anything with Sapphire for CONSUMER PRODUCTS. If I misread that, this is very significant.
I wrote that post. Good luck with your investment. I truly feel sorry for you.
Exactly. OCLR never had a problem other than spending too much. The same revenue with 1/2 the workforce and there will be plenty of bottom line.
This company has A LOT of retail shelf space out there and they have a piece of a very high growth industry. I don't see any pullback lasting long.
I thought about this (long and hard). VPCO is the biggest pure-play public/tradeable entity and, hence, anyone that wants a piece of the ecig business will trade VPCO up. So, VPCO can certainly trade at a much higher multiple just because there's not really many other options to get a piece of the pie through. It helps that they give good presentations and are thinking/looking ahead. So perhaps your (original poster) "feeling" is valid
Thanks for the clarification. I saw that someone posted 4.5x EPS which did seem hard to believe. I think you're right though - in anticipation of future sales, the share price could just "backfill" (forward-looking, that is) into the future sares.
Your post is essentially a "this is going to the moon" post. Of course we all want that. However, the stock is up over 100% over about 2 weeks - Yes, I was buying at $0.77 on the day they announcing the recent dilution. But, fundamentally, the market cap is now about $160M on last reported sales of $25M and annual EPS of about $0.04. The sales and profit must ramp in order to justify any further move upward aside from investors loving that "rush". If BLU was bought out at 4.5x EPS then that would give a buyout price of about $0.16 so you have to put it into perspective and chill.