POET Technologies Inc.

If you have read the last few days of output on this board, and read the supplied links, it will appear to contain a large welter of almost indigestible material, difficult to follow, and even more difficult to reconcile with your investment in PTK. But, I ask you to read 2 items whose links I attach. I thank Rainer, 007 and PassionateIgnorance for supplying them and hasten to compliment the exceptional quality of the contributions to this brilliant board.

https://rys.sommefeldt.com/2015/02/25/semiconductors-from-idea-to-product.html

http://www.stockhouse.com/companies/bullboard/v.ptk/poet-technologies-inc?postid=23849494

The first is a comprehensive review of what is involved in the conception, design, manufacture, packaging and selling of a microchip. Its most important messages, in my humble view, is the overwhelming complexity of the processes and the one admission that it is almost impossible for one person to gain a total overview of the myriad of processes involved. The impression left is how on earth can any of it work at all, yet it evidently does.

The second article is the best and, currently, most comprehensive review of Poet Technologies, its history, milestones and current management I’ve read.

If you read these articles (they are long and demanding on patience), it will not be lost that we are dealing with a quite remarkable technology. The dated milestones will be reassuring in how far all this has come. The top impression for me was of the sheer scale of integration on a single chip of the light and electronic functions so desirable for the microelectronic industry as well as speed and coolness. This complexity simply cannot be reproduced easily and while I note the development of apparently similar technology by IBM (group III – V materials on Silicon substrate) it is highly unlikely that this can simply reproduce a POET process, with this level of sophistication, in the next 12 – 24 months (read the design processes in the second article), certainly not without breaking patent laws. POET is well advanced in the actual production of microchips and it is as near certain that they are under test now (read the BAE evidence announced).

Allied, is the development of a management team which emerged over the last 6 months, particularly the last 3 appointments. Now, I am only too aware that qualifications, even experience, is no guarantee of success but, for absolutely certain, you will have no success without endeavour, courage and knowledge. This small company has, somehow, put together a truly exceptional group of individuals. It is not lost on me and, perhaps, others of the Indian connection in all this, which probably reflects the Ajit Manocha input. His appointment reflects the outstanding contiribution of Peter Copetti in all this. In my former work, I had the privilege of working with many doctors from India (India has a very direct connection with the UK and Commonwealth countries). It seems blindingly obvious that the quality of management is unexpectedly high in comparison with the company’s size and revenue. Suffice it to say, Indians are characterised by loyalty, honesty, ambition and an addiction to technology second to none. The members of this team have all left highly paid jobs to enter a small and apparently risky company which leaves me with one strong belief: they would only do this on the basis that something truly exceptional is in the offing and they have an opportunity to lead a scientific and business adventure with the potential of a revolutionary change in the technology of microprocessing; they are certainly not there for the salary.

So, what to make of this: well, when I first invested, 3 years ago, I had hope for a clever idea; I have watched as this technology developed. Now, we seem close to a tipping point. I remain convinced that the science involved is beyond the overwhelming majority to truly evaluate and probably inhibits large scale investment but contracts and major company interest will soon give the evidence that this is game changing technology. Nothing has occurred that changes this view and all recent developments have acted as spurs for me to hold on. There will come a point when it will dawn on the rest of the investing world that this is exceptional and the rewards will be high. I believe that a NASDAQ listing will be the strongest indication that the company has good news to follow.

David