PIC: What's to come of it? Apparently poorly managed prior to the recent company split, we have a new mgt. team at INCE, with Paul Meztinger leading the team. He was involved with bringing PIC and Intercell together, and he promises to be a straight shooter, who resists hype...so far so good.
PIC could - 1) Produce internally, 2) License the technology, or enter one or more alliances, or co-manufacturing arrangements, or 3) Sell the technology outright for a sizable chunk of change.
It seems that at some point after Intercell bought PIC last Fall, INCE's former mgt. team was considering option #3. It appears they may have been talking to Berg Electronics about selling the PIC technology outright. Rumor has it $50 million was being discussed...but I wasn't there, and rumors are....well rumors. If talks were held, it's obvious they didn't reach an agreement.
I'm not posting this to stir up shareholder dander (after all $50 million, if they could get it, would go a long way towards increasing the price of Intercell's stock), but I think it important to understand the huge opportunity PIC represents to INCE, and us, as shareholders, and I think it's important that we take a serious interest in what INCE does with this important asset.
PIC plays in a multi-billion dollar market, and the directlion Metzinger and his team take with the technology will greatly impact the degree to which we either win or lose on our investment in Intercell. I for one hope our new mgt. team doesn't kill the golden goose while it's still a young bird (i.e. sell it outright early on).....but, I'm trying not to be a backseat driver.
Rumors of equipment for sale? Pieces of the puzzle falling into place? For now, it appears INCE mgt will stick with option #2. I get the feeling they would prefer not to physically produce product themselves, rather they're leaning towards developing one or more alliances in order to reap the rewards of owning the PIC patents, without having to put up the cash necessary to produce the wide variety of product variations the market would probably desire. This seems viable, and may be a very prudent strategic decision.
Time will tell...and I wish Paul, and the PIC team he is building, the best of luck. It won't take much to hit a home run considering PIC is a small fish in a very large pond...and if they win, even a little bit, we all win.
Whether the rumor regarding INCE talking to Berg is true, I think it's worthwhile to investigate the major players in the interconnect market. Berg is certainly one of them.
The following links lead to: Berg's home page, a company overview, and a pres release defining some of their recent financial achievements.
Happy reading.
BERG Electronics has been a leading manufacturer and marketer of electronic interconnect systems and products for over 45 years. By developing leading-edge technologies that became the standards for the industry, BERG continues its dedication to the best price/performance in its products and customer service. Along with this continuous commitment to engineered customer solutions, BERG is well-positioned in growth markets and plans to expand its leadership role in the future.
Headquartered in St. Louis, MO, USA, BERG is a leading worldwide supplier of interconnect systems and products including connectors, sockets, and cable assemblies. Its broad range of products serve the computing, telecommunications, industrial and instrumentation markets, and many more. BERG's 20 design engineering and
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