Subj: Re: 10K Comments
Date: Thu, 3 Apr 1997 09:25:47 EST
From: Wesley0428
Message-ID: <19970403142501.JAA22872@ladder01.news.aol.com>
I'm also very pleased with the 10K and things in general at SLI.
The Company's position on Al -free is encouraging. Not their strongly stated patent beliefs, but comments like "The Company ... believes it will offer major competitive advantages to the aluminum based products of its competitors." I'd love to see SLI beat the competition in the Marketplace, then let the legal stuff take care of itself. I'm glad SLI does not appear to be basing their al-free hopes on patent protection. And they state that they
have a number of Al free wafers in processing.
They continue to imply a need for rapid capacity expansion during 1997.
Between 2/12/97 and 3/20 (5 weeks) order backlog grew from $1.3M to $1.8M. I believe there were some product shipments during that period as well. That means SLI was booking new orders at a rate of more than $100K per week (or $5M per year). That is excellent given that at this stage many of those orders are small evaluation orders.
Regarding Konopelski, I hope his continued selling doesn't depress the stock, but even if it does it can only last so long. I believe he and his family control about 357,000 shares, before any recent sales. Maybe some big strategic partner, or a few funds, will take him out. If SLI's sales take off, I think the stock will too regardless of Konopelski's sales. In fact, he might reconsider and hold his shares, which is the scenario I think most
likely. Remember, a $1.40 increase in SLI's share price matches the damages he is seeking from SLI (actually $1.18 on an after tax basis).
I'll comment on the financials and my earnings forecasts in another post. |
