Shorts covered.

All information is on the table in terms of timing.  

Dual Epitaxy suppliers now working for POET.    

Partnerships, NRE, completed VCSEL, Denselight cash flow positive, completed protype- all these items are going to help us in 2017.   

I see very limited downsisde  and good upside from here.  PTK is oversold.  

Yes, more patience is required, but 2017 is looking very interesting. 

What about a well worded letter back to POET management from shareholders? A refined, well written, with a request to them from retail…

-stressing extreme fiscal responsibility and pure avoidance of another PO. This money needs to last until cash flow positive and fly on its own.

-more clarity on the exact developments of the technology and time line associated.

-requesting a maniacal focus for efficiency and speed to get to market with a POET VCSEL. Are they doing everything they can, in all facets (pre designing an AOC?, queuing up channels/markets? Leveraging industry technology, and technology partners the best to their ability get this going?).

-maximize our ability to obtain NRE in short term. Detector? Military deal? License out non core vertical markets? LEt's line up up the NRE train for when the VCSEL is done. Get some very good sales people out there winning deals with what we have today.

The fact is this SP is making me ill. I want to know there is blood, sweat and tears occurring at POET head office on daily basis. I am available to fly down there with megaphone in hand to fire up the troops every morning if needed (kidding… kind of).

Let’s f'n go.

P.S. I am very appreciative AJIT came on board, but is POET funding his conference, back slapping circuit? Is he working VERY hard on POET for the $ we pay him or iis he in semi-retirement (i don’t know). The former CEO of GF title is getting old. Actually he is the Chairman of POET, lets get step it up, represent this company, and focus 100% on POET 110% of the time- yes POET -get this going now!

Acacia today...POET tomorrow.

http://www.wsj.com/articles/facebook-shares-optical-networking-technology-dubbed-voyager-1478031258

http://www.zdnet.com/article/facebook-contributes-telecom-designs-plans-to-telecom-infra-project-adds-partners/

I think we are all reading too much into every detail.

If someone, on their own steam, asked the CEO to provide commentary (already public information) on the recent news events - and he agreed...then created a concall link so this could be shared with more people, and distributed it freely - is this better than ZERO infomation?

The official concall call is coming soon. Take a breath everyone...we will be ok.

I believe this is an conference call arranged by large shareholders/investment house to outline public information via CEO commentary. The organizers of the call requested the link/call be distributed freely and would be happy if IR sent this out. It is my understanding there will be a second and "official" follow up call communicated by IR to follow soon after as well.

The call is not intended to exclude anyone, or convey special information to certain people... a proactive attempt to get more info out to shareholders on facts that are already in the public domain. Feel free to join. More info is good, no?

Like many of you, I was not pleased with a capital raise announcement yesterday. This said, the sky is not falling. Consider taking a deep breath and not reacting on emotion.

Something to consider:

There is a growing stable of optical products: ie. Lasers, Detectors, etc. that are real products in POET's possession today. POET, via Denselight, is projecting a revenue increase from 450K to 2M by the end of 2016. These are not large numbers, but growth none the less. The optical and sensor market (IOT etc.) is growing (very) significantly and POET has an opportunity to sell the existing products more pervasively into this growing trend. To sell more they need more sales people, partners/channels, build some inventory/working capital possibly factory changes etc. POET executives have more industry contacts than what Denselight had in the past so in combination with a ramped go-to-market + execution, new revenue and sales can be realized. Note: Sensors and detectors tend to be of higher margin.

Other thoughts:

-Pushing forward with a diversified product sales approach (vs. waiting), will decrease time to positive cash flow. This is a key point in time.
-We all agree that a diversified Optical /Laser/Semiconductor technology company with a stable of products selling to a diversified group of customers - is a healthier business vs. a single product to limited amout of customers.
-Building the sales infrastructure will assist in growing revenues via Denselight based solutions today, but also positon the company to hit the ground running faster when POET based solutions hit the market.

So ....the company is doing a capital raise. Is it perfect timing- no. Is it at the optimal stock price- no....but this is the decision the company has made to balance the -here and now revenue- with what soon will come with a POET VCSEL AOC solution. The ~10M or so of cash on hand is likely not enough of a float to support current development operations and ramp the sales engine/inventory/working capital needed for the company to compete in a multi billion dollar market.

What is not far down the road and why remain optimistic:

-(for what it'is worth) I truly believe the VCSEL is not far away. Most will agree that Ajit is a respected executive …he looked us all in the eye at the THM to say (paraphrasing) “it is not far, a matter of weeks not months”. I believe he meant it truthfully at the time - only to find out the last mile of completing the solution needs to take longer partly due to the cycle time to complete each iteration of the final optimization process. (My 'gut' read - it is a short term month to month situation. it could be Nov, Dec, Jan...)

-Once the VCEL is complete…. I believe it is extremely likely there are industry entities that are waiting, that are sitting on a preliminary agreements/MOU. What logically comes next is official partnership agreements/ co-development contracts that can be announced to the market with NRE attached. After which the final AOC cable undergo development, completed and sold into the market.

What is the SP catalyst?

I believe both #1 and #2 and #3 are possible anywhere in Q1-Q2 of FY17. Call me crazy.

Let’s ask ourselves what the SP will be after #1 and #2 are complete. Will it be higher than .65? Will it be over $1, $2? Will it matter what the SP is today or in the meantime? Is now this the right time to exit this investment?

This story is taking incredible patience from all of us. We have spent years and hard earned $. I personally believe it will be worth it. I personally am not getting rattled at this point. I am not about to sell on a dip or pull out now. Forest for trees.

TechGC