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Posts by ash471

The contract is sealed by the court so we aren't going to find out.  However, given how well Apple negotiated its contract, I would guess that Apple's loans have been secured by the equipment.  Normally a creditor would get $0.10 on the dollar for the equipment.  If the equipment is liquidated and the factory shut down, Apple might recover like $50 million.   However, what if Apple takes possession of the equipment and hires someone else to run the factory for them? Apple...
Just because a deal goes bad doesn't mean that someone screwed up, or lied, or withheld information, or violated SEC laws.  Sometimes a business deal doesn't work out because it just doesn't work out.  That's why all contracts have a termination clause.  What is clear about this contract is that the termination clause is highly favorable to Apple and termination put GTAT in bankruptcy.  They bet the company and failed.  Shit happens.  
BTW, go back and read post #134.  Is anyone going to challenge my analysis? 
Did you read my post? I said, the most obvious answer is that Apple moved the sapphire screens back a year.  Who gives a shit how many iPhones shipped in September.  Obviously GTAT knew it wasn't supplying screens for iPhone 6. That doesn't mean his contract was terminated.  You must not know anything about manufacturing, contract law, or common sense.  The CEO may be an idiot and/or a crook, but there is no reason to assume this from a rosy outlook in August followed by...
If we want to really speculate, maybe Apple is planning for sapphire displays next year (iPhone 6s) and they think GTAT is a shitty supplier and a liability to their supply channel.  However, GTAT probably has a good patent portfolio.  So Apple sets up the contract with very stringent performance parameters, knowing they aren't likely to perform.  Most supply agreements have clauses that let the customer have the product manufactured on their behalf by another supplier if...
What makes you think that he didn't believe everything was great as of August 26th? Let's assume for a second that GTAT is a piece of shit company and didn't hit their quality target.  If you are Apple, what do you do? Create a maelstrom about a supplier weeks before you launch your product.  Of course not.  Instead, you tell your dumb shit supplier that you are pushing the launch of sapphire back a year and tell them to prepare for production of the watch.  Your posts...
They may not have had a choice. Apple controlled the timing of the default by withholding payment and a company of that size would be hugely vulnerable to a cash crunch like that. They most likely needed to hit the stop button immediately on installations and they couldn't do that without leaking the fact that the Apple contract was over. If possible, they would have filed bankruptcy the same day they got the news from Apple.My guess is Apple knew they would file...
Just to clarify all materials will bend and return to their prior shape so long as you don't exceed the yield strength. The elastic limit is inversely proportional to length. For example, a 2 inch piece of wood doesn't appear to bend, but a 20 foot board of the same thickness is like a noodle. Sapphire can be made more flexible or less flexible than glass or aluminum depending on its thickness.
So? They did $168 million in Q2. $500 is a lot, but believable even for just the watch. $500m is small cap business.Secondly, it is very very unlikely the CEO would lie about something like that. The CFO, board members, Apple, etc. would all known whether it was a lie or not and wouldn't want to be implicated. I give your hypothesis about 0.001% chance of being correct. The most likely explanation is that Apple had a "chat" with Mr. CEO in September or October.
You keep saying this over and over and I don't think the facts support you. The most likely scenario is that Apple told GTAT they were moving the sapphire screen to next year's iPhone and the first product would be the watch. On the August earnings call the CEO didn't know Apple was going to shit can them. Occam's Razor. Look it up.
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