I won't deny that and under ordinary circumstances I would agree. Do not get me wrong, since I am waiting for the drop in these stocks to help me make it to the exit door. But in certain cases we must be flexible. SCON is emerging from a development stage company and has already shipped product. We are not talking about products 3 years down the road. We are talking about products that have been tested and the very first rollout is occurring.
It was probably inappropriate to make the comparison between the 2 companies since I cannot fault your logic and comments. But like Paul Harvey, there is a "rest of the story." For better or worse, I relate to my own perception since many years ago, when dinosaurs ruled the earth, there was a small company that made wafer scrubbers for the Raw Silicon Wafer manufacuters like Wacker and MEMC. As a young pup in the industry (a junior Engineer), I was part of a group that twisted this company's arm to make track track equipment for the litho process, using the expertise they hand for the wafer scribbers. We took delivery of some of the first SVG track equipment at National Semiconductor.
While it is not a fair or equivalent comparison, we were able to look beyond the garage type operation early in SVG's adolescent, and give them a shot. We have a great deal to lose if they were not up to the challenge.
So, given that I have been following superconducting technology that goes back as far as the josephson junctions from Hypres more years than I would care to remember, I took some creative license with a vision of what I believe to be coming down the road.
Now that I have had some sleep time, I should not have made that statement. The foundation was not meant as a financial comment but rather as a good foundation for Intellectual property that should be converted into financial prosperity.
SCON has less competitors than SVGL, for the moment and the technology works. Their success is going to be gated by the ability to ship these filters much like SVGL needs to ship scanners.
CDTS/SCON are definitely on the very left hand side of the maturity curve while SVGI is a very mature company, so no comparision should have been made by me since it is apples and donuts.
BTW-it has been my experience that negative book values are usually associated with development stage companies since all they are doing is burning cash with not prodcut stream.
SVGI might have turned a corner this past quarter but I still think the market is punishing them for the trailing 12 months of negative earnings. this is the only reason I see for SVGI not being considered undervalued by the market mavens.
AV |
