Opinions
Michael Smedley
Poet Technologies
PTK-X
RISKY
Jun 04, 2014
Stock price when the opinion was issued
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Have a revolutionary gallium arsenide based substance to replace silicon, and they can put visual and sound on one chip. It will be faster and cheaper. Still in the laboratory phase. His question, if this works do the regular silicon type switch over or not. This is a mad money stock at the moment. Sounds interesting, but don’t go in with everything but the kitchen sink.
Very interesting technology, but unfortunately there are a lot of companies that have interesting technologies. The question is, can they end up commercializing it. A recent research report said they were fairly close to being able to put out a new version of the chip at a much lower CapX cost. Chip is supposed to give better performance and at lower cost. Relatively speculative.
Working on a new design for semiconductors, as well as being able to integrate a combination of both analog, digital and optical. It will be a while before this kind of technology pans out. In the first quarter of 2015, they are expecting to announce some deals which would be quite positive for them. This is very, very early stage technology. Offers great opportunity.
If their technology is successful, it will hopefully reduce the power consumption in a chip and also integrate a lot of different components including optical gear within the chip. They are expected to have a lot of partnership announcements from now through to the end of June. Thinks people are waiting to see what those partnerships might be, and if it will lead to actual sales.
There is a lot of science to this one. They attempt to justify the next phase or improvement of semiconductor chips with a gallium arsenide base, instead of silicon. Just recently hired lots of hotshots. Thinks the biggest speculation is whether Intel and other companies are doing their things, which will crush this program. A very active trader. The news is getting better.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company is looking to list in the US and is probably going to consolidate for this. The tech is interesting but a higher revenue base would make the argument more compelling. Sales are minimal but market cap is around $320M. With the risk on mood, and insider buying, it could be a good play. Expectations are quite high. Unlock Premium - Try 5i Free
It trades only 39,000 shares per day, so it isn't very liquid. (The beta is 0.23.) It still has negative earnings. POET reported on April 26 a fourth-quarter net loss of $3.7 million, or $0.10 per share, vs. a loss of $5 million, or $0.17 per share, a year ago. POET didn't supply sales for Q4, which ended last Dec. 31, but the net loss for the fourth quarter did include research and development costs of $2 million compared to $2.2 million a year ago. The EPS was in-line at $-0.10.
A very, very interesting thing. Technology of switching from silicon, as a base for semiconductor chips. Using gallium arsenide to get speed and cheaper chips. A word of caution, it is still in the research stage. It did correct after making a massive run.