This morning I trudged through cabbages and foul rubbish littering the Agoracom stage after ACT ONE of PTI's production of The POET PO Pricing Drama. A performance which on face value has nothing to commend it at all, given such a poor valuation of PTK shares in this Public offering. Management seems to have taken leave of their senses but why? What is so critical to management that such poor value is deemed acceptable. Also, given the weight of knowledge and experience on the Board of Directors, why could this hiatus not have been avoided?
Answering that question has drawn out numbers of supposedly retired/banned glooms to gloat that they were right all along; namely that we are in fact managed by voraacious self centred incompetents. The reality is they have not one iota of knowledge greater than you I or present facts to share with us apart from the blindingly obvious which they have now deeply tainted by their pessimism in your minds Personally. I would not want these men with me in a fire fight - surrender monkeys all of them. Their words gleefully contributing to the panicked exit labelled: exit here to lose your hard earned savings. This is very sad and unnecessary.
There are no prizes for guessing what was happening would lead to a disastrous further decline in the Share Prices in Friday's trading yet it did not happen. Yes the price logically dropped to a level broadly in line with the offering but then remained there. The speed at which the offering was sold out demonstrates that the road shows created the necessary demand for institutional investors to participate, who must have concluded that POET Technologies Inc represents a good investment however much us retailers feel let down. Much of this resentment stems from this, that a group of mainly institutional investors should have such a good bargain, compared to long suffering retailers who are underwater. However, their presence here will potentially generate the buzz and analysis necessary to propel the SP forward on good news which has not happened previously. Thus we may all yet benefit from their presence.
The big dose of reality that we must accept is that this company was under-financed and that additional funding was required. I don’t like the deal but one has to assume that urgent requirements dictated the terms. We must also accept that the decision is rightfully one to be made by management. It is not a plot to defraud long term investors but is a harsh dose of the reality of investment in Venture Capital that we signed up for. Here key factors in the development of technology and product are not always predictable and cannot be planned for.
That said a company statement in explanation in a prologue urgently needed before ACT TWO can open and PTI can get on with the business of making money from several areas of opportunity which are now emerging with LUXMUX being the first announced and others will follow as our management have not been sitting on their hands and we will soon see their predictions for revenue from their analysis of customer requirements.
Finally, some are predicting VCSEL integration will be late and I can see how this conclusion could be drawn on the previous funding basis but my prediction is that the funding raised was needed to ramp up the R&D and to resolve the supply issues for changes in the epitaxy of Ga As discs that were slowing development. Management will want to retain its milestones and targets fully aware of the value of being first to market and therefore worthy of the dramatic steps we have seen this last week.
sula
