POET Technologies (PTK:TSXV) has witnessed a spike in insider buying on the TSX Venture over the past few trading days. Insiders bought $97,825 worth of stock recently, topping all other values of insider buying, in any particular stock, on the TSX Venture.
TSX Venture technology stocks have increasingly found interest and respect from Canadian investors over the past few years, especially if they have a unique and ‘disruptive technology’.
Junior resource investors, suffering from one of the worst bear markets in decades, have enjoyed diversifying out of mining stocks and into companies with emerging products, unknown potential and sound business plans.
POET Technologies has been going about its business for a long time…
Dr. Geoff Taylor and the POET research and development team have spent more than 18 years developing and proving out numerous components of the POET platform, resulting in 34 patents to date, and 7 patents pending.
The company’s 10 day average volume tops 300,000 shares. Not only has trading activity been picking up, but its value as well. POET has nearly doubled since mid-October when it hit a 52-week low of $0.315. Its 52-week high of $0.69 was hit early last year. On Monday the stock was up 11% on 885,000 traded, to $0.57 per share. Consider the fact that there were 160 trades Monday; that means the average value of each trade was only $3,100. This suggests the possibility that the retail investor in Canada is beginning to notice this tech stock.
The company issued a press release that day, titled, POET Technologies-Special Strategic Committee Update. An excerpt is below:
POET Technologies Inc. (TSX VENTURE:PTK)(OTCQX:POETF) (“the Company”) – developer of the proprietary planar-optoelectronic technology (“POET”) platform for monolithic fabrication of integrated electronic and optical devices on a single semiconductor wafer – announced today the completion of the work of the Special Strategic Committee (“SSC”) and the update of its published milestones. The Board of Directors has endorsed the Company’s commercialization plan put forward by the SSC which is chaired by Executive Director Peter Copetti.
The SSC was established in June 2013 to investigate and initiate strategic alternatives for the commercialization of the POET technology platform using a multi-faceted approach based on discussions with potential industry partners.
Click here to read about the major recommendations set forth by the SSC.
What is POET Technologies?
POET Technologies describes itself as the developer of the POET platform for monolithic fabrication of integrated circuit devices containing both electronic and optical elements on a single semiconductor wafer.
The company gets more detailed with this description on its website:
POET Technologies is the developer of a platform that will power the next wave of innovation in integrated circuits, by combining electronics and optics onto a single chip for massive improvements in size, power, speed and cost.
Interestingly enough, the number of transistors on a chip double approximately every 1.5 to 2 years. The company explains that this increases the performance capabilities of computing devices and the many functions they make possible. Unfortunately, with present silicon-based integrated circuits and manufacturing processes, performance and cost improvements under Moore’s Law are increasingly unsustainable, and will soon come to an end.
By integrating optics and electronics onto one monolithic chip, POET will provide its customers with a rebirth for Moore’s Law and usher in a new wave of innovation in integrated circuits.
How big is the Integrated Circuits Market?
While POET Technologies has yet to hit the blast-off button into commercialization and big contracts, the company has its eyes set on two massive industries.
POET Technologies hopes it can slice off a piece of the $299+ million Military (FY2013 Optoelectronic-Sensor Segment) Dept. of Defense Budget and the $400+ billion in 2013 (Gartner Dataquest) Commercial Semiconductor Industries. The company believes that optoelectronics – its specialty, will be a “coming major force” at some point in the above markets.
The technology is believed by the company to meet the market need for high volume, rapidly growing optoelectronics, wireless and sensor market segments which demand greater bandwith, increase processing power and integration, with lower power dissipation while being cost effective. Finally, the company notes in its business overview that, “these markets are established, but are at a threshold where a new technology technical dislocation is needed.”
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. POET Technologies had a market cap of $75 million Tuesday morning.
