"The real question is whether the ability to produce very limited amounts of commercial product means they have solved the problems of mass production and now will be able to produce sufficient quantities of product at acceptable yields to earn a profit sufficient to justify the current market cap. The market is clearly betting they have. A reading of the SEC filings would suggest this is still a very open question."
Questions and statements about relative value, future earnings, etc., are somewhat problematic, ain't they? That is, nobody here qualifies as a seer. And this includes yours truly. Be that as it may, I for one have seen their R&D facility, and know how complex the operation is. So have others, and its this direct experience against which guesstimates of earnings potential are being derived. That's as opposed to some folk who don't talk with management directly, nor make any attempt to reach beyond their CRT screen.
Even so, with regard to your above statement I've got to go with Oppenheimers decision in that regard. Clearly they bring more to the table in terms of personnel, evaluative capabilities, etc., than most of us who chatter on these threads. And, equally as clearly, their actions indicate their opinion of the matter.
Bottom line? VLNC's all about continued build-out, and expansion, within a market sector few have been able to mount an aggressive sales/production campaign to garner a share. As a result VLNC has an unparalleled opportunity(imho). Management looks to be doing what it takes, so my bet is similar to Oppenheimer, et.al.'s. VLNC should do well over the next couple of years.....unless the market decides to continue to do, over that time, what it did yesterday. In which case, who can say. But that's the nature of the game...you pays your monies, and you takes your chances....
Now let's see how it all plays out....
John~ |
