Aiming to become the global leader in chip-scale photonic solutions by deploying Optical Interposer technology to enable the seamless integration of electronics and photonics for a broad range of vertical market applications

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Message: Speculation, Exultation and "The Valuation"

DISCLAIMER: Although I will refrain from using PPS numbers here, I will issue a warning. There are forward looking, positive, exultive and pom pomish statements herein. Second, most of this content is from our POET office group. Where ever possible we have provided informational links, if you don't see them, then the reader can assume the thought process is either based on personal experience or confidential corporate experience. So if your at all skittish, squeemish, or skeptical, please go to he next post.

Much conversation on the subject of valuation in the last 24 hours and even often times in the last year, this is one of our favorite subjects. As we have been working on it for a year. I thought we could take a look at it in a macro setting. What does POET bring to the world at large, the tech world in specifics ? The end game is for you to decide. Fj's comments were bang on, even if one calculation was off slightly. I really don't think people grasp what is in front of them here.

http://www.slideshare.net/intlces/2014-global-ce-sales-trends-ces-unveiled-media

http://gtdc.org/research/

Before we did anything else, we had to establish a set of Gantt charts quantifying all the stats we had garnered, and listing all the ways, types, and versions of technology available to the world. Then how POET could/would effect them. Then we had to establish dollar values extrapolated from those myriad reports and articles we had/have acquired, the statistical information, every other kind of information piece assembled. One has to find out what the global value of direct technology and equipment sales was (1.5 to 2.5 Trillion usd-in some publications and higher in others) in all realms of business globe wide. We then had to segement them into verticals where POET would be most effective. We counted over 200 micro and macro vertical markets where POET would or could have everything from minimal to majoritive effect.

http://www.theguardian.com/technology/2015/mar/08/apple-watch-crunch-time-1-trillion-dollar-company

http://techcrunch.com/2014/07/26/the-first-trillion-dollar-startup/

We then looked at technology employment numbers, technology manufacturing and attempted to analyse and create a sort of GDP all encompassing number for that segment, from countries around the globe. We paid a sort of homage to the greater good also, in rendering a value number for quality of life created by the use of technology in daily life (convenience, safety, and other) then comparing it to the quality of life "improvement" that POET would render. Along with an eye to what new and improved products, services, and situations would help the greater world.

http://global-indices.insead.edu/documents/GITR2014.pdf

http://www.forbes.com/sites/forrester/2015/01/07/forrester-global-tech-market-looking-better-for-2015-at-least-in-the-us/

Its true that through the reams of research and data collected, one can get bogged down. It was tough for us to get straight black and white data to measure with, for and against. We went over both P1 and P2 and saw that they used beyond ultra conservative value approaches and that it was definately an exercise in baseline minimums. Neither took into account any real future value or effect that the technology would/could have on everything from jobs to quality of life to company and product profitability. These and many other factors all have to be considered.

http://www.forbes.com/sites/quickerbettertech/2012/05/21/a-3-step-method-for-valuing-your-company-at-1-billion/

http://www.ausicom.com/filelib/PDF/ResearchLibrary/Technology%20Valuation.pdf

http://www.ssmic.com/UploadedFiles/file/Michael_Avedesian_Technology_Valuation_Presentation_11_Dec_07.pdf

https://ec.europa.eu/jrc/sites/default/files/jrc_20110428_ttocirle_spasic.pdf

Its true, the bulk of we humans are oblivious to logic when it comes to subjects such as love, sex, marriage and money. Something about endorphins in the brain, or so I have read. So applying logic with that in mind, is quite nebulous at this point. Someone mentioned rational/irrational exuberance. There is little in the way of rational (fera and greed are not rational) in any market, hence the frequent frenzied bidding processes utilized in the auction process. This may anger some....but...if you are thinking that once major announcements come that there will be an orderly process, then think again. If this makes you the least bit nervous then be prepared for early exit. In fact consider it, otherwise your angst will be a health detriment. As senior players come in to rock the stock,volatility swells could well be in the multi dollar swings intraday. Be aware.

I/we have a bit of a unique perspective and vantage point over most. Senior management here, including myself all have been around at least 15 years in the industry, if not more and have seen the dot com boom, bust and reboom. The cell phone the smart phone and now the "phablet". The logic here is not in an ever increasing share price potential. Thats a given. Rather its in the part of and percentage of everyday lives that the product will touch, affect and effect. The logic of a valuation has to take into account not only what some binary actuarial bureaucrat deems as the "IT" value, but what the greater good comes to as well. POET could save/salvage an entire industry. Certainly one thats been faced with the climbing of the hill of constant product improvement and innovation, a mountain of climbing for exponential performance improvement, and breeching the wall of failure at the top of that mountain. Whereas POET will do all that in addition to saving global jobs, creating new products, spurring improved life qualities and generating billions in earnings.

SYNOPSIS

So although the end is never in site in this little project and really that is because we find constantly find new and conflicting methods to assess and adjust number values. We find new ways for POET to earn revenue and of course theres the currently unmeasurable Quantum factor, a bold but vague and nebulous futurecast on what "may" be. No doubt it may be historical.

I think the best way to describe or illustrate a POET future (near and far) would be a simple comparison. Comparing then and now is tough and not without challenges. The time line is collapsed to be much shorter than our comparable companies and the developmental product potential from when they started to how we are starting is quite different as well. Along with technology forecasts and the greater world consumption of technology, these are vastly different factors from their start to ours, that will impel and propel the rocket ever skyward in the future.

Again, the future factors of what POET will provide in quality of life (things IoT), commercial factors, industrial factors, energy savings, promotability of cause, et al all have to be taken into account in some way. As good as our comparable companies history, it may not be even comparable to POETs future, and on a much quicker time curve. One on its potential death bed, another on the launch pad. One with billions of shares outstanding, on with less than 250 mln. One with a multi multi billion dollar market cap, one with.......well....a not multi billion dollar market cap......but not yet, anyway.

Want an equal to compare to? That POET will certainly usurp ? Want to establish a near term valuation comparable ? I am not going to mention the name.......but.....

Look no further than "POET inside"

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