Apple would not have been privy to the details of GTAT's financial health beyond what the company published in its quarterly filings, so it's not out of the bounds that Apple, assuming GTAT had other irons in the fire, might be impacted by not receiving the final $139 million payment, would be surpassed to find that this caused the company to seek protection from creditors through a bankruptcy filing. (It would have been a violation of insider trading rules for GTAT to have provided insights into its financial status beyond what it had released publicly.)
A message that is valid. Was valid. Before you took your position in Portalplayer. The fact it took you two times through the mill to realize this does not imply Apple is at fault. It's merely a fact to consider whenever you put your money I to a speculative bet.
The first rule is... Know the difference between investing and speculating and don't put your retirement money into what's clearly a speculative bet and not anything close to what you could reasonably call an investment.
gets you when your earnings report disappoints. There was nothing but air holding this thing up.
Excellent post. Hopefully those still holding the shares will heed this and take their last good opportunity to dispose of them.
I'm not in the stock long or short. I had debit call spreads from August going into the iPhone 6 event, which I took my profit on and was out of a week prior to that event. Haven't touched it since. My reason for being here is to speak to the Apple half of this deal, as I am long AAPL shares. So my broker won't be speaking to me on this matter one way or another.
Oh, my! The shorts will lose all of what? When you short a stock, you borrow it and then sell it. Therefore, you get the money for your trade upfront. Like writing a call option, for example. So you're saying that the shorts, who already have the money in their hands, will lose, what, exactly? If they never close out the trade that would be fine with them; just means they wouldn't have to pay taxes on the money they got from it. LOL!
I imagine Apple would prefer GTAT delivered on whatever the terms of the contract were that would have netted them the last payment form Apple. From the reports I've read, Apple did try to work with GTAT toward GTAT meeting its obligations under the contract. This is now become something Apple will have to dedicate even more of its time and resources to deal with; not likely Apple wanted this to come to this point.
Apple likely did their due diligence at the start of the deal, but may not have repeated that due diligence work after the deal was underway. You have to trust that your partner will inform you if something isn't going as planned external to the details of the work you are doing together. Certainly, a public company cannot reveal details of its overall finances to a partner, no matter how important that partner may be, without also making that same information generally available to the public. When material information is divulged to only a select and limited audience, that's called inside information and the company could place itself in a compromised position by revealing it to only a single entity (in this case its partner, Apple) without also informing investors of the same information. So it's not so out of bounds to imagine Apple was not privy to GTAT's financial status apart from what GTAT published in its most recent quarterly report.
That's a bit conspiracist on your part. Apple, like any company going into a relationship with another company, would want to add stipulations and performance metrics to the contract to guard their interests in just such a situation as has come to pass here. The non-disclosure agreement with the $50 million penalty is something Apple does to maintain secrecy from its competitors, not from the shareholders of the companies it makes these deals with. The reason GTAT isn't able to tell anyone is to prevent Apple's competition from getting a heads up and starting down their own path on a similar initiative using similar means that it could learn only from being privy to the details of Apple's partnership and goals.
Everything goes in a fire sale. And at fire-sale prices, they won;t likely raise enough to pay back their debts. So, in fact, that is not the most important question. The most important question is, at what price did you get out of your shares. You did get out of your shares, didn't you?
You know, you may be onto something. If the stock hits $0.01 before it stops trading altogether, I'll pick up $100 worth, just on the off chance there's something to your cockamamy 50%-50% back-to-normal theory. LOL!
Here's one more bit of information about GTAT's patents and intellectual pretty. According to the deal it made with Apple, Apple has rights to all the necessary IP related to their use of sapphire. So while GTAT's IP may have value, it's value Apple has already acquired.
LAKE has gotten plenty of action too lately. They make protective clothing you see all the health care workers wearing.
If you held GTAT long before Apple's involvement then you must ha e been away of the collapse in their solar business from about $1b in 2011 and 2012 run rate to nearly nothing in 2013. You must have been fearful that the company was likely on the brink of bankruptcy in mid-2013. And you must have been aware that your position in GTAT was mere speculation and not an investment.
Even if Apple saves the jobs, that implies nothing for GTAT being saved. Apple already owns the land and buildings, and it's loan to GTAT is collateralized by the sapphire production equipment. So it's likely Apple gets that equipment in the bankruptcy proceedings. Also, Apple's deal with GTAT gives Apple rights to the IP, so they don't need GTAT to continue producing sapphire at that AZ facility, should they choose to do so. They need only staff. With GTAT going bust, Apple could, with permission from the bankruptcy court, hire away those needed from GTAT, thrn staff the hourly jobs from the local AZ workforce. Problem solved.
Let's be even more clear on the matter. He didn't invest in GTAT. Nobody who bought GTAT stock since its solar business collapsed in 2013 invested in the company. They were in no way investors, even thought they would like to call themselves such. Their purchase of GTAT was speculation, a bet on the comeback of a company that was on the ropes and likely would have filed bankruptcy months earlier had they not cut the sapphire deal with Apple.