POET Technologies Inc.

I have not posted for some time because of the paucity of management action, the fear of repeating myself and acute domestic crises such as vacations and barbeques. But, I have kept reading the forum and noted the actions of the last few weeks.

The technology offered by this company has not changed for the worse and it apparent that achievements such as 100nm have been completed - you really do not put articles in serious, peer-reviewed, scientific magazines unless you have been successful. This means that there is now, already, the potential to produce microprocessors that are faster, cheaper, and at very much lower power consumption than anything Silicon can do at this point in time. It is clear that to progress, the assistance of a substantial manufacturer of microprocessors is required in order to produce POET microprocessors for testing and verification of the experimental claims made.

To undertake this, the management of this company appointed to their board an outstanding ex-CEO of the second largest manufacturer of microprocessors globally. This appointment has not just local gravitas but offers worldwide access to a very large market with colossal revenue potential. Please remember that low power microchips with low battery consumption, huge processing speeds and future proofing by further miniaturisation means that mobile products – this is a gigantic market – will find these claims alluring. The appointment can only be seen as astute and has the quality of a coup about it. The appointment was not cheap for a small company but essential to any aspirations the BOD has. It may well be that further appointments will be required of this ilk as they move through testing, verification to production and sales.

The forum welcomed this news almost universally and it was reflected in a transient elevation of the share price, rightly so. The facts with regard to the subsequent fall are not clearly known but may relate to a large single source sale of shares. Nevertheless, the current share price still hovers around averages substantially higher than 6 months ago. I suspect strongly that more announcements are likely in the near-term i.e. over the next 3 months.

Enter the problem of a reverse split. Those on the board who are primarily motivated by rapid success express serious reservations, Bumblebees post of today is exceptional, it summarises beautifully the probable effects.

My view is based on what I believe to be common sense. This announcement could not have been made without Ajit Manocha’s knowledge and approval. Furthermore, this appointment will have taken months of quiet diplomacy to arrange and management silence essential. The previous aggressive posturing, by some, regarding the absence of news releases now seems silly. If you post aggressive and sometimes downright rude commentaries then you say more about yourselves than you will ever do about management.

If you want to be a large microprocessor licensing company with substantial global partners and huge revenues then you will need to be off the Venture Exchange and in the NASDAQ. If you are thinking “big” then join the “big boys”. You could diminish the seriousness with which you are taken otherwise. Reflex agnosticism and management carping is simply foolish. I believe this BOD is trying seriously to change the whole ethic of the company in the lead up to the time when production and revenue begins. If we require a reverse split to improve the share price to get on the larger exchange with vast global reach then so be it. At least give them the power to act appropriately.

Finally, nothing, and I mean nothing, has changed my belief, as a long term investor that this company has a brilliant, ground breaking technology of revolutionary proportions. If this is the case, I seriously believe so, the share price today is irrelevant and will increase over the next 12 months because ultimately the share price will always follow success. Be patient, watch the technology and its development. Think big.