I do hope that every one had a great and productive Christmas day. I am on the first leg of a 3 city Canadian tour visiting family. Its a tad busy, a bit crazy, and a heck of a lot of food ! For myself, its also to see the wonderment in the face of a child and that alone reminds me of who I am and why I am doing this. An homage for family and grandchildren, so they may have the opportunity to experience some of the freedom and lessening of daily pressures that most have to accept for granted in the daily grind. Its about family, at this time of year, and really it (our devotion) should be about family the other 364 days as well. But thats a personal thing.

I am not used to having down time. Or having nothing to do. So my fingers get itchy and I get a yen to do something. An email to answer or some research to do. To share ideas and discuss.

Last week, before I left, we had a final get together of the office POET group. Led by our CFO, we reviewed the last years happenings and discussed whats ahead. It ran over by more than 30 minutes.

So as always, the message is up for discussion, please don't shoot the messenger.

When we convene our meetings, there is always a chair, who brings the subject matter and then we follow a rule of order like flow and disuss the topics brought forth. We have some in our group that are almost equivalent to a Rainer or Fairchjisback, an Oogee, RVH etc We have designers, engineers, production people, lab techs, etc, all whom have become involved. For the year end meeting we removed the usual topic restrictions and covered the developments of the year past. Now, just as an aside, this group has only been in formation since the summer. Further to that, a few of us have been holding shares a very long time.

The discussion centered on several critiques....how a foundry would go about the process, and what it would take to manufacturer once the ability was undertaken. How long would that take. In the meantime and now that the assumed nodes/milestones would be completeable, the word would be out publcly, who might be interested and how much would they be willing to pay. Lastly, how much front running could be done by the company to improve time lines and catch the competition not only off guard but off the planet. Again putting ourselves in mamagements shoes, what was the plan and how to execute it,

A related experience was also brought forth.

A number of years ago, we had a creative client come to us with a sound board product problem. We had originally engineered, designed, and manufactured a couple of products for them in a previous year. The problem was to resize and reorganize the board to fit in a new kind of smaller lap top product that was coming to market. The other stipulations were budget and time constraints. The plan was for deployment to the end assembler in 6 (contractually 180 days) months time. To be ready for shipping by them in the following model year to the end assembler. Using re-engineering principles we developed and the variation of the process known as SMT. We managed to complete the project, on time and within budget.

http://en.wikipedia.org/wiki/Surface-mount_technology

We were lucky for several reasons, one of which was having done a similar type of work before, secondly, because components of the work we had never seen before and so had no preconceived notions on success or failure. This helped clear any fog of doubt simply because we had little time for doubt. So then why would this discussion be brought up ? One of our engineers has/had a hard time believing that the duration of this is what has been said publicly. This topic has been mentioned here before. Now, please understand, I am not saying that this is the right consideration nor am I saying we should give credence to longer timelines. What I/we were saying is that somewhere in the middle is probably the right timeline. However, then came the discussion of just when the time line started and what gave legitimacy to this discussion was the Google/Ajit happening. We are transfixed with these mysteries.

The entire manufacturing process, from start to packaged chips ready for shipment, takes six to eight weeks and is performed in highly specialized facilities referred to as fabs.

http://en.wikipedia.org/wiki/Semiconductor_device_fabrication

So again, I understand what you are going to say. This is not Silicon and its not only a new material but a new and (so we think) an untested process as well and I get it. I really do. What I am merely trying to say here is that "waste not-want not". Expedience is the gameplan, cash generation the hallmark, where that is involved, the hybridization would result in "time is money" (billions in this case) lets pour the hours to it. I have seen it happen and had it said to my face. "The client wants 24 hour teams on it and will pay all extra costs associated to get it to market as soon as humanly possible" I am not saying this is the case I am saying this is a possibility that opens further thought.

Marketing, as addressed in a previous post was also disussed at length. For someone in say an Apple or Samsung marketing position, or whomever who works for them contractually, this is an absolute dream to work on. Like a cure for Cancer, a car that runs on water, a power plant running on a POET technology, this is the bomb. Without hubris, nor ego, this is a marketers dream. A thousand campaigns with a thousand variations can be thought of.

This now brings me to the meeting component on standardization, of which seemed to be the most raucous. The main point being that there is no standards to measure against. (Someone brought up the Ford F-150 and its all new Aluminum body as a measure of the old steel clad unit-how its going to be received and what will happen to their record market share). So if there are no standards to measure against, how do we measure ? We can "project", we can "speculate", but wedon't and probably can't or won"t ever really know. Until the first financials come that reflect the earnings start to be released. We won't know. I can tell you though, as was brought forth from the CFO, there will be a group of interested parties who take a chance on the first few quarters and then there will be those who want real numbers who will come late, but pay great. The financial crowd will jam the doors to buy the cash flow, not the sizzle. In the old advertising modicum, "Sell the Sizzle not the Steak", Apple and Samsung and all the rest will be selling the sizzle. Enoughs been said on what the sizzle is.

One of the most interesting remarks of the meeting was from one of our lab techs who also happens to be working on an MBA at a local University. She had a hypothesis. Involving several components starting with the departure of the director who she felt was headed to a company to either be a liason and/or a board member of in relation or representation of PTK. Some questions as to who, with some answers from the group. She continued on with her theory of how first, Synopsys, will be doing the work for PTK for a piece of future earnings, structured as a type of JV, similar to a revolving credit facilty where they would be paid as with each progress with charge on future earnings or shares. Next, a foundry partner would buy in for a 5-8% position, and 4-6 licences would be announced thereafter. Her next component involved a position by Google. Based on a similar action by Jack Ma, where Google injects a large cash amount into PTK for an equity stake. Jack Ma has invested in $120 mil USD in behind Google in "Kabam" a Google backed gaming company. As with a Google and/or a Ma investiture, this would bring further exposure to the game and more investment requests than ever. Our meetings are never dull.

Another postulated hypothesis came from a member regarding a triumverate involving PTK, IBM and GF.

Next came another question/remark regarding comparitive potentials. Yes again..."How do you compare with something when you have nothing to compare too?. So we speculate to as close an acme as possible. In this case, is ARM Holdings with 1.2 bn in revenue, twice the shares out and currently trading at $47usd......a comparable. ? Are we comparable to these numbers ? now or even down the line. Is it even fair ? Does it provide fuel for the discussion fire ?

http://www.forbes.com/companies/arm-holdings/

So is the next node, the best node, is Rory an allegory, does Google want a piece of the pie, is GF our good friend or just a gossipy female ? The next CEO was discussed and several names came toi the fore including Mr. RR, an Apple candidate, two others from industry related spots, but the mainstay seemed to be Mr. RR. I can not comment further on this as I don't have an educated opinion as yet. I need to do more due diligence. But RR is certainly seeming to be a monstrous choice if it is indeed him.

CEO by or before January 31 ?

On the financial predictions topic, nothing has changed in our belief, and our projections remain the same. Its the groups feeling the $70 club is a pot hole on the highway to much higher valuations. Oh it will hit it alright, and most likely blow right throught it.

The previously mentioned IoT, has us very interested as to what PTK will garner for interest in the sector, and over time how much market share. Discussion rounded out on pre and post NASDAQ pricing and how the company will begin and maintain a news dessemination program. Will the company have early buying support booked in as well. There were several comments made towards the type and order of the coming releases and what could be done to sustain momentum. Although, I really don't see that as an issue.

GlobalFoundries to produce 14nm chips in the first half of 2015

December 18th, 2014 at 11:59 pm - Author Anton Shilov

GlobalFoundries, the world’s second largest contract maker of semiconductors, plans to start volume production of chips using 14nm fabrication process in the first half of 2015, a little later than Samsung Electronics, but, possibly, earlier than Taiwan Semiconductor Manufacturing Co. The company does not reveal who will be the first customers to use the manufacturing technology, but claims that there will be at least a number of them.

http://www.kitguru.net/components/graphic-cards/anton-shilov/globalfoundries-to-produce-14nm-chips-in-the-first-half-of-2015/

That will give you an idea as to what subject matter was covered.

I have to run.

Oh and by the way....I have been reading and rereading a copy of the June 2014 Compound Semiconductor article on Geoff Taylor...a fabulous read....an engineer in our group keeps a well worked, dog eared, notations every where on it, copy with him all the time....hes always eager to talk about the article and POET.

So lets end here for now, let me say this. I am extremely confident that 2015, with all things being equal, will be a major year of not only technical development, but business and corporate development as well. By the end of 2015 PTK and the POET product will be front and center in the technology world. It will be trading on a global stage, its product lineage and usage shall be more clearly defined, and everyone from the Alaska to Zambia will know of it, about it, and will want a piece of it.

Call it the new "Apple", call it the new "Intel", call it POET if you like. Though....whatever its going to be called or compared to, nothing will compare. To simply say "its not going to work" or "its never going to be a game changer" is to simply say you are bereft of forethought, absent of wonder, and last but not least...... uttering......."Sorry I'm late....I missed the bus".

All the best in 2015 to ALL on this forum.