Remember those videos they released talking up the advantages of Gorilla Glass over sapphire? I firmly believe Corning thought Apple was going to start using sapphire in their phones. This is likely due to the number of orders Apple was committed to, which coupled with their investment in GT caused Corning to worry.
I bet Apple only knew the sapphire wasn't feasible for the iPhone 6 several months before release, and then made the switch to Corning as their alternative source/backup plan. If Corning already had advanced orders for the iPhone 6 then there'd be no reason to bash sapphire (and indirectly bash Apple in the process).
Picked up a shitload of GT stock yesterday. Blows my mind that noone was recommending that. I could have sold today and made a few thousand profit (it hit $2). But I'm gonna hold.
Just don't sog35 if that gamble doesn't pan out, ok?
Kuo is an idiot. Sapphire is not suitable for a full screen because a piece that size would be super fragile. One drop and it could shatter to pieces. And Apple has likely tested this and knows this. Which is why they aren't using it for the screens.
we simply can't know this -- it's certainly possible they could invent various composite layers or other techniques to help mitigate that concern, perhaps like auto glass. we just don't know. only apple does.
Picked up a shitload of GT stock yesterday. Blows my mind that noone was recommending that. I could have sold today and made a few thousand profit (it hit $2). But I'm gonna hold.
perehaps Sog would be interested in buying some additional shares?
The bottom line is this stock will be ZERO once the Chapter 11 proceedings are finished. Then GTAT will reissue new stock (if they choose to go public) than the old stock will be WORTHLESS.
It says here that only happens if they will go to chapter 7:
"When a corporation is on the verge of bankruptcy, its stock value will reflect the risk that a Chapter 11 may become a Chapter 7. For example, a company traded at $50 may trade at $2 per share due to bankruptcy speculation. If Chapter 11 is actually filed, the stock price may fall to 10 cents. This value is composed of the potential income that shareholders may receive after liquidation and a premium based on the possibility that the firm may restructure and begin to operate successfully in the future. Private investors can buy and sell these 10-cent shares in the OTC market. The actual value does not reach zero unless the probability of restructuring is so low that a Chapter 7 filing is sure to follow."
GTAT says they aren't going completely bankrupt:
"GT Advanced CEO Thomas Gutierrez said “Today's filing does not mean we are going out of business; rather, it provides us with the opportunity to continue to execute our business plan on a stronger footing, maintain operations of our diversified business, and improve our balance sheet.” He went on to add filing for chapter 11 bankruptcy, which protects them from debt collection during a reorganization process, was the right thing for GT to do in paving a “path to future success”."
The CEO doesn't seem like a very trustworthy person but Apple is obviously interested in keeping the company going as they tried to help them qualify for their last payment. He might even have bought back in to the stock after it dropped so low.
Someone on Reddit says they bought the stock at $0.80 and sold at $1.80. It's high risk but high reward with the right timing. It says here, it will be listed until October 14th:
It says in GTAT's last filing that their liabilities didn't exceed their assets. If their losses grew beyond the $86m loss last quarter and pushed liabilities over their assets, that could have urged them to file for bankruptcy. They have over $300m cash and over $600m in property. Current liabilities were $394m but might have increased.
It looks like they have options. It should be safe to trade until around the 13th and then if people want to leave money in, it would be best to leave what can be easily lost. They might not go back up to where they were before the bankruptcy but it could still be a decent jump.
Comments
So what about Corning?
Remember those videos they released talking up the advantages of Gorilla Glass over sapphire? I firmly believe Corning thought Apple was going to start using sapphire in their phones. This is likely due to the number of orders Apple was committed to, which coupled with their investment in GT caused Corning to worry.
I bet Apple only knew the sapphire wasn't feasible for the iPhone 6 several months before release, and then made the switch to Corning as their alternative source/backup plan. If Corning already had advanced orders for the iPhone 6 then there'd be no reason to bash sapphire (and indirectly bash Apple in the process).
Picked up a shitload of GT stock yesterday. Blows my mind that noone was recommending that. I could have sold today and made a few thousand profit (it hit $2). But I'm gonna hold.
Just don't sog35 if that gamble doesn't pan out, ok?
Kuo is an idiot. Sapphire is not suitable for a full screen because a piece that size would be super fragile. One drop and it could shatter to pieces. And Apple has likely tested this and knows this. Which is why they aren't using it for the screens.
we simply can't know this -- it's certainly possible they could invent various composite layers or other techniques to help mitigate that concern, perhaps like auto glass. we just don't know. only apple does.
Picked up a shitload of GT stock yesterday. Blows my mind that noone was recommending that. I could have sold today and made a few thousand profit (it hit $2). But I'm gonna hold.
perehaps Sog would be interested in buying some additional shares?
It says here that only happens if they will go to chapter 7:
http://www.investopedia.com/ask/answers/10/stock-holder-lose-equity-chapter-11.asp
"When a corporation is on the verge of bankruptcy, its stock value will reflect the risk that a Chapter 11 may become a Chapter 7. For example, a company traded at $50 may trade at $2 per share due to bankruptcy speculation. If Chapter 11 is actually filed, the stock price may fall to 10 cents. This value is composed of the potential income that shareholders may receive after liquidation and a premium based on the possibility that the firm may restructure and begin to operate successfully in the future. Private investors can buy and sell these 10-cent shares in the OTC market. The actual value does not reach zero unless the probability of restructuring is so low that a Chapter 7 filing is sure to follow."
GTAT says they aren't going completely bankrupt:
"GT Advanced CEO Thomas Gutierrez said “Today's filing does not mean we are going out of business; rather, it provides us with the opportunity to continue to execute our business plan on a stronger footing, maintain operations of our diversified business, and improve our balance sheet.” He went on to add filing for chapter 11 bankruptcy, which protects them from debt collection during a reorganization process, was the right thing for GT to do in paving a “path to future success”."
The CEO doesn't seem like a very trustworthy person but Apple is obviously interested in keeping the company going as they tried to help them qualify for their last payment. He might even have bought back in to the stock after it dropped so low.
Someone on Reddit says they bought the stock at $0.80 and sold at $1.80. It's high risk but high reward with the right timing. It says here, it will be listed until October 14th:
http://www.businessinsider.com/gt-advanced-shares-rally-after-bankruptcy-announcement-2014-10
It says in GTAT's last filing that their liabilities didn't exceed their assets. If their losses grew beyond the $86m loss last quarter and pushed liabilities over their assets, that could have urged them to file for bankruptcy. They have over $300m cash and over $600m in property. Current liabilities were $394m but might have increased.
It looks like they have options. It should be safe to trade until around the 13th and then if people want to leave money in, it would be best to leave what can be easily lost. They might not go back up to where they were before the bankruptcy but it could still be a decent jump.