For those that believe nothing else matters but sales and money from production we know that this is going to take time which is perfectly normal and is typical of new technologies. I believe that products based on the dielectric optical interposer will be advanced by POET as a result of the needs expressed by partners and customers.  I think officially we have to call these potential partners and customers and that in itself causes investors to adjust their perception. So the investors who are aware of POET and have some level of understanding make their determination of when and how much to invest based on the confidence or probability of adoption. That perception at this stage is driven by what the tech looks like…what will be the demand. Can it become that silver bullet that can be adopted by industry as the best platform for current and future applications?  Can it scale, can it be rolled out quickly as designs are specified.

Any slice of the pie will be significant but long term investors here who are familiar with the company see the potential for POET becoming an integral component of the whole pie. Let me say this in a different way. Using the pie analogy I see POET becoming the pie pastry that everyone wants to use as the fundamental base for all variety of pies. Many will have the clients that have a particular taste for certain pie filings that they are Jonesing for and will want to use POETs pastry which is as close to perfection as they can get in terms of cost and ease for a delightful culinary marriage  with their pie filing.

Some more familiar with the history of junior miners who have made big discoveries might want to think of it in terms of a resource.

Junior miner valuations take a lot factors into consideration long before they are a producing miner.

The history of Voisey’s Bay (Diamond Fields a Robert Friedland company) for example is a great story and it took a little bit of time to establish that they had something very significant but it would take many years before a mine was actually built and put into production.

Voisey’s Bay exploration and discovery phase: In the fall of 1994 after collecting surface samples during the summer Diamond Fields began drilling. The second hole they drilled hit massive sulfides and instantly the potential of a very high grade deposit was recognized. By December Voisey’s Bay the stock was trading at $13.50. Then they missed on the next 6 holes and the market dropped to $11. Hole 7 hit and was an outstanding 3.9% nickel across 104 meters. It was a near surface discovery close to tidewater and had the potential to become a large resource. The stock moved up to $20 and the big miners were running the numbers trying to estimate how significant the deposit could be.

Tech decided a unique approach to ensure they secured an interest. They bought 10% of the company without even seeing the core. They paid $108 million for 10% of the company the equivalent of $36 per share and turned over their voting rights to Friedland to help prevent any future hostile takeover. Days later the stock would trade at $40. By June it was trading at $80 as Inco took a 25% interest for $387 million and by the time the deal closes the stock is at $96 and in 1996 the company would be taken over by Inco for $174 (presplit).

The mine would open in 2005.

 I think you all get the point I am trying to make. The valuation of any company is based on the potential net worth of its product.

The valuation of POET is very much dependant on what the capabilities of the technology are and how badly companies want it. And that can only be assessed by identifying those capabilities and that is what we are trying to do. If those capabilities measure up then the valuation will follow as companies sign up.

So the market and industries understanding of what POET is matters more than anything else at this point in time. The rest will come as that understanding becomes established by what POET can present to the community.