Exit Strategies
posted on
Jan 17, 2015 02:16AM
‘May you live in interesting times’ is an English expression attributed to an ancient Chinese curse. Apparently there is no basis for this quote, so Wikipedia tells me, but to me this saying accurately describes the painful condition we seem to be in at present, closely watching for every indication of POET developing the potential it undoubtedly has and waiting for the news which will confirm what we believe. That is, that there is a vast untapped market for planer optical electrical technology which is about to be filled by transition from ‘lab to fab’ of POET and with the signing of contracts between the potential developers of the IP and POET Technologies Inc.
Encouraged by the last news release we can realistically assume that technical, financial and managerial progress is on target within the ‘project stretch’ we have become used to. The sand in the oil of our perception is what is currently happening to the share price. Whilst it is easy to rationalise that the current share price is of no significance to the eventual outcome of this project it is nevertheless the measure by which we personally evaluate the success of our investment in POET.
As an early investor I consider POET to be the best investment I have ever made being 130% up on my position of a year ago even at todays end price. But recently I have begun to empathise more with others here whose position is not as rosy because they cannot be ’patient’ as they have a pressing need to raise funds from their investment in POET. I would like to be able to give them some comfort as they may not be able to wait for the ‘legacy investment’ that POET is likely to become; where I feel the real rewards of being long in this investment will lie. The question to be answered is how long shall short term investors have to wait before exiting with significant benefits?
For me the principle indication that the time is near is the financial planning (exercising of warrants) that will facilitate the employment of additional directors and staff. This recruitmen was brought forward by seven months in the last NR. That indicates to me that something has happened to make that a sensible and financially sound decision.
Furthermore PC by requesting the last AGM to support consolidation he signalled an early entry to the NASDAQ, I would rationalise that this would have to be before the next AGM, say by August 2015 at the latest. By this time the SP would have had to be at $4 US for a period, which would at least allow investors, who had to go, a profitable exit.
Finally, PC has never dismissed the notion of accepting the right offer for the company. Whilst this would not be my desired exit strategy one has to consider that it could be very lucrative given the sophistication that this project has now acquired - a going concern rather than simply Intellectual property to sell.
Whilst instant gratification is always pleasing I prefer the notion of POET as a ‘legacy stock’ where we benefit from both investment growth and high dividends; this is my exit strategy.
What do others think is a sensible exit strategy?