From today's price action one thing is clear. Smallest hint of a good news and all the short roaches run for cover. This could be possibly setting up for one of the most violent and incredible short squeezes of 2014. Any squeeze and we could explode past $18 smashing all technical resistance levels. At the current price, the risk is clearly on the short side not long. IMO.
If you refer to my posts right after the iPhone 6 release that was a point I made over and over again. It was just foolish for investors to expect GTAT to build a factory, refine patented technology, test the refinements and mass produce to meet the millions of sheets of sapphire needed to meet the iPhone 6 launch. Let's understand the iPhone 6 phones were not manufactured in Sept 2014! But months earlier. So the Sapphire was never meant to be placed in the first mass launch of iPhone 6. NEVER!!! There has been NO BACKTRACKING BY APPLE! NONE! Just think about the reality of the events in the past few months. And WHAT A BUYING OPPORTUNITY THIS HAS BEEN for GTAT shares. Those who are buying will be handsomely rewarded soon. IMO.
Ironically GTAT is not a play on Saphire in iphone 6. Even if Saphire is not going to be installed in i6, it is the future and it will replace the inferior GG in many devices, especially in Apple devices. But, GTAT has other successful businesses and products which are being completely ignored here. Do your DD and you will see. The one thing that we really should be excited about is the quality of the management. This has been proven over and over in the past few years through some really tough times. So, I'm no investing in Saphire here. I am investing in the quality of the management. And in a few years, my retirement fund could be nicely enhanced thanks to my 12200 shares of GTAT. Not selling a single share for the next 5 years.
hammer, you're right. drillers are never going to make any money again. The oil industry will be closing down as there is never going to be an uptick in demand. We're all going to be using candles and batteries for everything we need to do. I will be buying puts on all oils expiring in Jan. I will be a very very rich man. This is a no-brainer!!! And I will sell my car and use a bicycle to get around. Go candles and batteries!!
The cutting of the dividend could be THE catalyst to spur positive sentiment on the stock. We all should be excited that there's no need to borrow more money just to cover the dividend. I will be happy with a 50%-75% cut now, and still get 3.5 to 7%, PLUS a nice bounce back in the stock to mid $30s.
As I have predicted and planned - GTAT is now going to retest recent highs. Hold on for the push up to $20. If we close above this, shorts will be squeezed out and there can be a pop to $25ish. Stay tuned...
What's even more pathetic is the investor reaction to all this. GTAT is not dropped as an AAPL supplier. They are still going to supply just not now, but next year. Seriously did anyone really believed that a brand new facility could be erected and the innovative process of providing Saphire with an effective yield and on a cost-effective basis could be perfected, tested, ramped up and manufactured ALL WITHIN ONE YEAR??!! I mean it is completely reasonable that GTAT Saphire didn't have time to get into the first run of the i6. They DID manage to get in to the iwatch. Everyone is so unreasonable and so impatient! Come on guys, where is your conviction? GTAT is still the same company with an AAPL contract, Saphire for all types of uses, upcoming solar, LED and Saphire innovations and lots of profits!! This $1.6B company has already re-iterated they will gross $700M next year - that's a Price to Sales of 2 - with $1.50 per share of profits! Now go sell GTAT and buy GPRO, CMG, TWTR, Z, NFLX, LNKD, YELP and other high-fliers with Price to Sales of 100 or more!!!! Ridiculous!!
Don't jump in with both feet without regard to what's going on. But taking a look at what's going on makes one believe we've washed out now. With so much negativity around this sector, the likes of which I don't recall in the past few years, I rather risk capital on the long-side, collect dividends and wait for the inevitable pop. After all, oil and drilling for it are not fads, unlike cameras on a stick or Mexican fast food chains trading at unbelievable valuations!
Dan, I think we have many non-believers on WS. I cannot fathom why GTAT gets no love here. Just because it has had a great last 12 months it doesn't mean it is too high. Thankfully our trump card is the amounts of short position in GTAT. This will inevitably create a massive squeeze soon. The same ANALysts who downgrade now will soon upgrade when GTAT is above $25. Go figure.
Agree. Someone who's a lot smarter than all of us said: buy when everyone is selling. That advice has definitely worked out for him.
Well if I were short today's action would scare the heck out of me! Imagine if GTAT said their forward guidance is affirmed or the solar business is OK or Mesa is on track for 2015 delivery to AAPL or they will buy back some shares here or god-forbid if an analyst upgrades it or something. GTAT shorts would then really have to cover.
Wait for a relief rally. It will be soon. Gtat can really pop ironically thanks to the shorts who will create a massive squeeze. I predict a retest of recent highs in next couple weeks.
Agree. Especially because a bunch of technical and algo shorters jumped all over this and they will cover as soon as the volume dries up. That itself is worth a spike to $35 in days.
So it makes more sense for AAPL to buy GTAT outright to expand their margins tremendously!! Either way, GTAT stock is a huge winner going forward. Thanks for pointing this out again.
The ones who lost were the short-term traders who jumped on GTAT recently hoping for a quick buck. Unfortunately, they just gambled with the AAPL news and lost - since they traded not invested. Although if you really thought it through, as I have posted in my prior messages, it would be unreasonable to think GTAT could have pulled off within ONE YEAR, the Mesa factory installation, production ramp up, testing and delivering Saphire on massive volume to earn a place in i6. The fact that iwatch has Saphire is extra-ordinary. But thanks to CNBC and other news mongers, GTAT "failed". Once the dust settles and cooler heads prevail, it will be apparent that GTAT business is still as sound as ever. And the fact that we got another chance to get in under $13 was the real story.
This is the stock market. When everyone and their brother is saying drillers will go lower, that's a great contrarian indicator that we're done with selling soon. The market NEVER does what everyone thinks it's gonna do. If so, everyone could be zillionaires since all predictions came true!! As it is, most people lose money in the market timing thing, including the pro's.