Tradergrader wrote:
To me it's a matter of whether Bob feels that the current valuation is a justifiable entry point. He may personally like the POET story but may have hard time justifying the share price for a company with no revenues. He may be in a tough spot.
That would not be a concern for Bob. He is well aware of the size of the market that POET could penetrate and being a micro-cap/small cap type he is well aware of the risk reward proposition offered. In other words he knows that it is a $600 billion dollar market as opposed to for example a Zecotek (his largest personal holding) which has the potential to gain market share in a US$15 billion medical diagnostics industry. Or PLI which has great potential but is a ways off from being cash flow positive still financing research and trades at a $1billion market cap.
As matter of fact when I met with Bob he was all about seeing the opportunity to get in cheap ahead of the crowd. He knows the history that has created this opportunity. The fact that all funding had been through US Government Defense Agencies up until the funding through IBK who are not a brokerage house. He knows that this company has flown under the radar.
Bob had lots of questions and lots of comments but I can assure you that he never mention anything with regards to the price being out of line with the market space it was in. I very much believe he was of the exact opposite opinion and this is why he is so interested in the company.
It would not surprise me if Bob has already had initiated a buy. You will notice that there was no disclosure about personal position. That being said it would be a departure of normal due diligence to buy without the opportunity to speak directly with management first.
Trader Grader instead of making the following statement about Bob off the top of your head it would be good for a change if you could actually provide some due diligence to support how you determined what Bob would think of POET based on his activities with other tech micro caps. The information is all there. You saw the BNN clip…or maybe you missed that. So it is just a matter of spending a short amount of time to review the companies that Bob has invested in. What makes this board great is the due diligence that many provide to support their opinions not half baked off the top of head impressions that you think will make this company look like a poor investment.
