Have you ever sat in a goup situation, and one or more of the persons are either skeptics or outright non believers in the discussion topic at hand ? It was like that the first few times I engaged industry connections regarding Opel/POET.

https://www.youtube.com/watch?v=Xe1a1wHxTyo

I think we really have moved beyond the silly and the sappy. It appears our newly minted world class talent has a personal drive and self mandated goal set to take this to where it belongs. People, purpose, planning, and product, have us on the road, to what history will surely call a paradigm shift and the company a market leviathon.

I write this, not as a stab at humour or as a pom pom shaking homage to the POET effect, moreover as an illustrative question of whats going to happen to all those billions ?

The current status of R and D spending in the semiconductor industry is no doubt in to the multiple billions of dollars.

http://www.icinsights.com/news/bulletins/Top-10-Semiconductor-RD-Leaders-Ranked-For-2013-/

So where will this money go ? Once POET becomes a majority player, it will have to go somewhere. No doubt fractional R & D budgets will be maintained and rebalanced as these companies adopt the platform. That still leaves billions for ? Discretionary spending ? Product development ? Profit Sharing ? in these individual companies.....or will it be used (or a portion thereof) to purchase shares in PTK stock to grab their own piece of the pie and indoing so reinforcing the "Consortium 2.0" model ? Which. incidentally, that is our POET office groups informal term for the model that the company/industry partners may just be building to.

http://public.sematech.org/Pages/About%20SEMATECH.aspx

http://www.samsung.com/global/business/semiconductor/aboutus/business/open-innovation/participation-in-global-consortiums

Being a tad bit forward thinking, I/we have looked at, and fooled around with various models of what this would, could or may look like. Its a bit too cumbersome to place on here. Yes it is billowy as well on the number front. Suffice to say that, as FJ has said in past, "early adopters" will have the largest advantage especially in whole vertical cases (bold by me and is my quote). Capital spending shifts are hard to predict and only in the afterfact can be rationally discussed, defended or debased. Its our opinion that some of this capital will makes its way to POET.

As more and more uses for semiconductors come to the fore, new designs and combiunations come available, new product and industry verticals will also be created. This will amp the numbers and in doing so create an earnings leviathon that heads a consortium of the worlds biggest players. The question won't be how much, but how big.....of a bank to build to put the cash in. Whether I am right or wrong, time will tell us, and in not much of that time component either. I still expect news on the up list to be in before the end of the month.

http://www.eetimes.com/document.asp?doc_id=1326860

http://electronics360.globalspec.com/article/5400/rise-in-drones-a-boon-for-chipmakers

I will leave you with this....

http://www.mckinsey.com/client_service/semiconductors/latest_thinking/creating_value_in_the_semiconductor_industry

However, most chip makers capture only a small percentage of the tremendous value they create; consumers receive the lion’s share. Indeed, despite its large positive impact on overall economic growth, the semiconductor industry (excluding Intel) destroyed approximately $47 billion in value for shareholders between 1996 and 2009. To put that figure, and the signifi­cant disparity seen in the industry, into context, Intel alone created about $57 billion in value during that same time period.

QUESTION OF THE YEAR......

What will POET create in value ?