POET Technologies (PTK:TSXV) has once again broken down below its 50 day moving average. The technicals for the tech company’s stock look bad at the moment, but this is not the first time it has sustained such a decline; looking back at only the last few years, POET has proven it can rebound, making those willing to buy on the dips, some serious cash along the way. Below are a handful of examples…
POET Technologies’ stock rebounds
Check out a more short-term version of POET’s stock chart which shows a clear break below the 50 day moving average of $1.09 per share.
POET Technologies falls below 50 Day Moving Average
Way back on January 7th, 2014, we published an article titled POET Technologies: TSX Venture Tech Stock you haven’t heard of; where we highlighted insider buying, the potential markets for the company’s tech. In the article, we wrote:
“Whether or not 18 years of R&D and 34 patents have the answer and ability to provide that solution in the real world market place is yet to be seen. Its insiders clearly believe it has a chance.”
Click here to read that original report.
Over two years later, POET Technologies is rapidly approaching a ‘real world’ market penetration moment. The company explains that its Silicon Valley-based patented module-on-a-chip process, which integrates digital, high-speed analog and optical devices on the same chip, is designed to serve as an industry standard for smart optical components.
Photonics has become central to how the Internet is delivered along with the ongoing solar revolution. In short, photonics is the science of light (photon) generation, detection, and manipulation. POET’s technology may lend advantages to numerous applications in this field which the company has laid out.
POET: Lab to Fab Transition and Photonics Acquisition Warpath
POET Technologies has been on somewhat of an acquisition binge of late. On May 12th, the company announced the closing of an acquisition of DenseLight Semiconductors.
Dr. Suresh Venkatesan, Chief Executive Officer of POET explained, “…With the strong support of the DenseLight management team, we have already begun to map our integration plans for the combined entity with a goal of achieving profitable and sustainable growth targets.”
Click here to read the entire quote and press release.
Five days later, POET announced its plans to acquire BB Photonics. The photonics company is a private designer of integrated photonic solutions in the data communications market. This type of acquisition in the photonics market should not come as a surprise to investors in POET as management has been praising the company’s potential role within the industry since February.
The company’s infamous Lab-to-Fab Initiative which has been discussed and used to describe its efforts to get product out of the lab, and into the world has continued to advance. The latest clue as to when potential revenue and ‘real world’ sales and applications of its product prototypes could begin was clarified in February of this year. The company reported that, it
“…is on-plan in every developmental, operational and commercial respect in its lab-to-fab initiative to deliver its first product prototypes this year.”
Photonics has moved to the core of what POET Technologies hopes to offer. POET Chief Executive Officer Dr. Suresh Venkatesan, commented,
“Social Networking, Cloud Computing, the Internet of Things and the growth of mega-datacenters are galvanizing a renewed growth spurt in photonics. We believe, POET is at confluence of these megatrends. And we believe we are in the position not just to ride them, but to drive them.”
Click here to read the entire press release from February 16th.
Looking back at May 17th’s press release on its planned acquisition of BB Photonics, Dr. Suresh Venkatesan, POET’s Chief Executive Officer, commented:
“The acquisition of BB Photonics helps bolster our Intellectual Property and know how in Integrated Photonic solutions and enables broad applications through its unique performance and cost capabilities. It is anticipated that these factors will allow us to expand, accelerate and complement our current roadmap.”
Click here to read the entire quote and press release.
POET Technologies‘ market cap sat at approximately $224 million Thursday afternoon. The company has been valued at more than $400 million in the past and traded for just $75 million when we first wrote about the company. Each time, in the past two years, the stock has fallen below $1 which it is threatening to do now, proved to be a buying opportunity. The most-recent opportunity came in late-summer of last year when POET hit $0.62 per share… its shares nearly doubled within a few months to trade as high as $1.44 on May 2nd. POET Technologies’ future appears to be more centralized around the rapidly developing world of photonics; for this reason, the company’s quest to complete its Lab-to-Fab transition may occur in this space.
This article represents solely the opinions of Alexander Smith. Alexander Smith is not an investment advisor and any reference to specific securities in the list referred to in the article does not constitute a recommendation thereof. Readers are encouraged to consult their investment advisors prior to making any investment decisions. The information in this article is of an impersonal nature and should not be construed as individualized advice or investment recommendations.
