| To: Selectric II who wrote (798) | 4/30/2024 12:10:24 PM | | From: SGJ | | | | | I read that and it appears that they are at the least 18 mos behind POET( an eternity in this industry). Plus they don't say how efficient the manufacturing process is. POET can produce the OI's on a mass production scale. No one else has demonstrated that in any of the competing OI systems, making them just science projects right now. If I was the CEO, I would just buy POET. Bidding starts at $10B ($200/sh). ;-) |
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| To: SGJ who wrote (800) | 4/30/2024 12:18:14 PM | | From: toccodolce | | | | h/t: macnai
POET: 2024 Could Be The Year For The Tide To Turn
Valuation
POET is Nasdaq-listed since March 14 2022 but has been a TSX Venture listed enterprise for more than a decade. Since being at the Nasdaq, POET lost most of its value and continued its previous decline - for the most part due to the aforementioned unfortunate capital raises. With all the uncertainty surrounding the company at the moment, I don't want to start making wild guesses about future share count and cashflows. However, the few analysts covering POET assign much higher valuations to the company. The one price target that SeekingAlpha lists is more than two years old and at CAD36.7 which implies an upside of roughly x20. The only publicly accessible and more current research report for POET is from Zack's Small Cap Research who see POET fairly valued at $14.5.
POET consequently appears cheap now but still faces the risk of further heavy dilution which might hamper a real recovery of the share price. Yet, even assuming a 30% higher dilution than Zack's author Lisa Thompson, the resulting price target would still be at $11.15 and imply an upside of about x8. Taking her revenue estimates and assuming a growth rate from 2024 to 2025 of about half compared to her estimates for the previous year, POET would be valued at a 2025 price/sales ratio of 3.26 (including 30% dilution).
Considering the multiples paid for AI equipment manufacturers at the moment and the company's expected volume ramp-up as well as its product pipeline, the current share price appears to leave more room for improvement - particularly when factoring in that POET seems to deliver a superior product which could enable the firm to generate premium margins. However, this all assumes that POET will be able to secure sufficient funding to enable its ramp-up as planned.
With the two most recent PPs totaling 6,706,655 shares(3,258,390 + 3,448,275) with a dilution of 16% and double that if the warrants are all exercised. According to Trading View POET has roughly 41.89 M shares
Zacks POET article
Zacks Full Research Report |
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| To: SGJ who wrote (801) | 4/30/2024 12:33:41 PM | | From: toccodolce | | | | Broadcom (AVGO) comes to mind ;-)
https://www.siliconinvestor.com/readmsg.aspx?msgid=34651875&srchtxt=avgo |
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| To: toccodolce who wrote (809) | 4/30/2024 2:43:56 PM | | From: w0z | | | | | OT JENSEN HUANG'S MASSIVE MIC DROP: "Our total cost of operations is SO GOOD that even when the competitors' chips are FREE, it's not cheap enough" |
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