Re: just a thought
posted on
Jan 20, 2015 12:47PM
I agree that there is no harm in asking questions that are weighing on your mind, however, I don't think Ajit would be involved in Poet, I don't think they would have opened an office in Silicon Valley or go to the trouble of licencing Powered by POET for all those devices or be looking for a new CEO, etc, if POET was not commercially viable. As has been pointed out, this is not your typical stock. There is no IPO coming, there is no underwriting by big brokerage houses, there is no trading exchange to allow for the big players to get involved yet so it is very difficult to try and predict the share price or how it should be expected to behave.
I have gone over this in my mind many, many times and still have trouble getting my head around it. But the market place is $500 billion+ and Poet has 200 million shares (for ease of calculation) so if Poet can take 1% of that market with its first deal, then that is $5 billion dollars which is $25 per share. So it is possible that Poet could gap up from $1.50 or $2 to $25 dollars plus (even higher if you convert to Can dollars as all deals will be done in USD.) Will this happen? NRs regarding 40nm, CEOs etc I don't think will move the share price high enough to get and stay in NASDAQ territory. I think it will need a NR regarding revenues. Even with a $1 billion deal would work out to over $6 Can per share. So bottom line, when there is a major announcement regarding revenue through whatever means (joint venture, partner, licence, etc) the sp could and I emphasize could, make a gap that won't be filled. IMHO