About Next Week
posted on
Sep 24, 2015 07:51PM
We would all like to have some spectacular news next week, it may or may not happen, but I also do not think it is necessary to move the SP significantly higher (it is seriously oversold). Sure we dream of news about a deal with a huge company (with revenue), stock triples etc., and that may or may not happen (I strongly believe it will, but not sure when). Safer not to expect it next week. I personally think all that is needed to move the SP higher is some clarity and signs that the technology is on track and that it will be adopted. The silence has been very bad for the SP (likely also unavoidable IMO, and yes frustrating), and I think many investors got nervous and bailed as they start to assume that the silence implies that there are issues with the technology and/or the potential deals have been abandoned (I personally believe if they have, it was the decision of the new management at POET). The warrant overhang and resultant pressure on the SP also would have made many investors nervous (SP going down must mean something is wrong might be the way of thinking for many).
It will depend on how things are communicated. If POET states that revenues are now expected in 2016, but this is because they decided to set the bar higher (e.g. why settle with PET just to get small revenue now), and go right into POET, and they have significant interest, and this will significantly increase the bottom line (albeit with delays), the SP will rise. There are many possibilities where their strategy lies (I believe whatever the strategy is, it is an improvement). I am of the belief that the new management knows what they are doing, they know what they have, and they know how to get it adopted, and not for small potatoes (maybe large juicey organic apples). If they just state that revenues are now expected in 2016 without any clarity, this would not be good, but I also do not expect this (they would understand the consequence of this, and why even hold the CC is they can't provide some clarity).
We will find out soon. What is fair to expect is clarity! I believe the market will endorse a solid, strategic plan, which I also expect to be very ambitious. I am grateful to PC to recognize that new management was required with the skills to get the technology adopted, as I do not think this would have been in PC's expertise.
I can say with conviction that I wish you all the best of luck, and I will personally not let emotions get in the way of my investment plan. Here's hoping.
Good luck and looking forward to the comments on this forum after the CC!!