There has been much debate thusfar on whether or not we get a NR leading up to the conference call on the 30th. For the record and, to the extent that there is material news to disclose and it were my choice I would issue the NR prior to the CC.
Having said that, I am more interested in content rather than timing for the following reasons:
- The new management group will want to commence their tenure with a "statement" event. It would likely be their desire to suggest, "we have the solution, we have the plan and we will execute that plan and here is how we will do it."
- We have been advised by Peter Copetti that this group is taking POET in directions not previously considered........sounds exciting and ominous at the same time but without doubt it will require cashflow and lots of it.
- Any news provided prior to or during the conference call must be significant in nature to address #2 above. Specifically, if the "ARM" model remains the model of choice then cashflow will come from revenue and they'll have to reveal what and how much and perhaps from whom. However, if the business model has changed perhaps as Peter Copetti suggested and the business model is one of a more vertically integrated business then significant capital will be required. Then the necessary financing to execute this plan could not be completed at current market valuations. Any news will have to be material enough to elevate the SP.
My conclusion and my opinion only at this point, is that we will get positive news and the 'market' will determine it's relative value.
One final comment to perhaps support this theory is this. If you recall, prior to the AGM there was very similar speculation that siginifcant news would be disclosed at that meeting. Just prior to the meeting, Chris Chu on the other hand suggested that the AGM would be a rather routine Annual Meeting.
At this point, there has been no indication one way or the other that this will be a 'routine' conference call. Personally, I do not think that the new CEO and the new COO, nor Ajit Manocha for that matter would employ this method of communication for something as routine as the 'roadmap' or an operational update, we should expect to get some significant disclosure..............I am hopeful !!!!
