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: Decline

The only reason this stock price is falling is because of macroeconomic conditions. No discussion. Inflation remains sky-high, causing central banks to raise interest rates quickly and sharply. The value of savings melts like snow in the sun. First a global pandemic, now a war in Europe. Extremely expensive energy bills reduce purchasing power and cause some businesses to close. I don't know how severe the recession will be or how long it will last. At the beginning of the pandemic, the MSCI World Index lost 34 percent. The crisis in 2008 caused the world market to fall nearly 60 percent. The crisis in 2000: more than 50 percent. Corporate profits decrease, and thus stock prices. In a bear market, investors are no longer willing to put high price-to-earnings ratios on the table for stocks. Company A makes 5 euros in profit per share and the market is willing to pay 20 times that profit, you end up with a share price of 100USD, but if the profit drops to 4 euros and the market is only willing to put 15 times that profit on the table, the stock price drops to barely 60USD. POET even has zero profits. In every past crisis, the stock market fell more than corporate profits. So far, the decline in profits in the MSCI World remains limited, although the index already lost 25 percent. The decline is due in part to the immense weight of funds and index trackers. If holders sell, fund managers are obliged to dump the shares of all the constituents at whatever price, regardless of the quality of the companies. This applies directly to POET. Funds and retail investors drop shares and a buyers' strike often ensues. Of course, in the stock market there are always as many buyers as sellers, but buyers become particularly frugal with their purchase limits. Consequently large orders cause fierce downward movements. These are amplified by the behavior of hedge fund shorting, one of the scarce ways to make money in a declining market. At some point stocks become really spotty. Those who have been in the stock market for a long time know that even this misery will someday work out, except perhaps if Putin reaches for nuclear weapons. POET is one of these spotty companies in my opinion. POET will just continue to expand. The customer list is growing every month. It has multiple decades of growth in front of it because POET's proprietary chips are addressing every megatrend market: Lidar, biosensing, AI, datacom, 5G. POET's chips outperfom other chips in every technical aspect. Former CTO GlobalFoundries (CEO POET) made the most disruptive technology I know. GLTA

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