IMO you do not convince AAPL by low margins, you convince them with superior technology at an affordable cost.
IMO GTAT can not give guidance on margins like they have said: meaning lower margins compared to historical GTAT margins. How could they? They are setting up a whole new supply chain with a massive need for furnaces and an very large power supply. If they need to give guidance between XX and XX points, what's the point in that?
IMO the AAPL deal delivers a sustainable bottom on the share price and GTAT has the ability now to focus on everything else: LED, PV and every new tech.
IMO GTAT now has a more technical share price to trade! The gap after ER has been closed!
I noticed the Google Finance site mentioning that institutions now own 101%.
Add to that the 20M shares short... Everything in place to make a bold move!
How does posting references deliver three thumbs down in a fifteen minute timeframe?
"While we do not expect this to be a high volume SKU, we believe it's meaningful as it indicates HP has tested and validated Atmel's metal mesh technology. We believe this opens the door to a growing partnership and may indicate penetration beyond just tablets and into HP's mainstream PC line. Furthermore, we believe Atmel's Windows 8 certification, announced a few weeks ago, will help the company secure a meaningful percentage of Bay Trail tablets coming to market over the next few months. "
If this technology is everything they say it is, then GT has IMO the technology to bid for every contract out there, sapphire of PV. It's all about thickness, yield and thus production cost!
A lot of the short interest (around 30M shares) is related to the debt on the balance sheet - raising capital for shares in return are often reported on the BS.
Let the BoD decide on that, IF GLW were to make an offer.
Nothing wrong with unsollicited offers; And when they do make an offer, accepted or not, SP will bode well from it, b/c it will put a support under the SP!
Before the Samsung deal SI was up, although not as much as compared to the rise after the Samsung deal.
After the deal, SI went up 42M, which is about 3% of the float. Any chance that this part of the SI is some kind of "convertible related"?
the SI reported, about a week AFTER the Samsung deal, was an amazing 84M, up 100%.
It's logic that SI rises when there's a gap up, MM do want to have their fare amount of shares, but nonetheless, it's quite a large number.
We (and analysts) don't know yet; Please keep in mind that they have patented the laminating process.
They definitelly ask the right questions, and they give excellent insight.
Although I ask questions about this:
"A report earlier this week from Cantor Fitzgerald analyst Brian White noted that sapphire glass accounted for about 11 percent of GT’s sales this year — around $28.9 million in revenue. In 2014, GT expects to make between $480 million and $640 million from its sapphire business alone. So clearly it expects Apple’s additional business to increase its production quite a bit.
What chunk of that increased revenue will be sucked up by Apple? The answer lies in GT’s Q3 release, which notes that Apple will provide it with a $578 million prepayment, which GT will reimburse over the next five years. Apple’s deal length wasn’t mentioned, but it’s likely to last at least those five years. Note that this is only the pre-payment, Apple’s investment in sapphire may go well beyond that."
Let Sapphire have double the cost than GG: why does GLW only have $28.9M revenue last year. IMO they do that number QoQ. So, even if GLW has $110M in revenue on GG, GTAT expects do generate a multiple of that number.
I think the real numbers still have to come, but more importantly, I think the real deal is: where will Sapphire be used for? I think it's more than a watch, I think it's also the Phone and Pad...
Sentiment: Strong Buy
INVN is a fabless company, who does NOT need to raise capital to expand production, for they have NO production in house. They issue to expand: pay for R&D, acquisitions, capex, etc.
These notes will have an impact on the short interest (perhaps it already has made an impact).
It's also possible that they issue these notes to have what we call a 'war deposit box'. What if the AD asset buy wasn't planned long in advance? They had the money on the BS, and didn't want to go to fast in negotiating a loan deal.
"Okay well, #1, that we really don't have much competition, technologically. And by the time we're through this next series of technological updates, we're probably going to be creating an even more significant lead, technically. "
By the time more details come out on the cash positive statement, this stock will be a long term investment.
"Moving on to our balance sheet. We ended the September quarter with approximately $258 million of cash and cash equivalents. At the end of the quarter, we had approximately $261 million of total balance sheet debt, which included approximately $96 million related to our credit facility and $165 million related to the carrying value of our convertible bonds."
$165M convertibles are to be deducted from the short interest. IMO there are only about 10M shares short (convertibles are in the range of $7) and probably covered through call options.
Nonetheless, a high number if you ask me.
explain to me how a short position can be a hedged long position.
Say a stock price is $15, and you short 100 shares, but SP rises to $20 a share and you cover. How much did you earn?
I believe it does. But off course, MM can easily acces another couple of additional shares for shorting, so I think this has to been seen on a daily basis for a longer period of time.
Nonetheless, 22M shares short is a whole lot of shares, and it is my experience that shorts tend to be right.
As I was only giving a personal thought, that thought is open for discussion. After reading 2 replies, there are 2 different takes on the thought, so that's quite OK.
The problem with having extremes in yout bottom line, is that you jeopardise your business and your R&D.
While it is of upmost importance for a tech company, which GTAT is, to have a steady continuation in your revenue and earnings, it is as important to have that same continuity in your R&D; If someone beats you to it and gets better products on the market, the have an advantage on you and you're in a downward spiral. All that matters then is your selling price.
I don't think it's a bad idea for GTAT to license or lease furnaces.