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Richard and all else,
I am president of an investment club in Philadelphia, and I have recently started looking into this company because one of our members is going to present this stock at our monthly meeting in January 97.
My first impression is that this is basically a speculative stock because their technology, currently in R&D at Princeton Univ., is yet to be proven in terms of commericial viability/acceptance.
Since it appears to me, according to a post on this thread, that their strategy is sublicense their technology to third parties, they will have to pay 50% of any future royalties to Princeton as per their agreement.
The approx. $5 million raised from the IPO, according to PANL's 3Q report, is enough for one year (ie, til April 97). Looks like they will have to sell more shares in the coming months and in all probability in the coming years...
And to top it off, in terms of technical analysis, the stock seems to be in a symmetrical triangle around the original IPO price of $5.
I plan to call their company tomorrow and hopefully visit their office since Penn Valley is prob. less than an hour's driving from where I live.
My questions are:
1. What is the status of their OLEM technology? And what makes OLEM
different from the current liquid crystal display panel?
2. How much more capital are they going to burn through before the
see any royalties coming in? (yeh, yeh, nobody, even the
management, can answer this question).
3. What is the status of Princeton's patent application?
My current intention at our investment club meeting is to vote not to buy because share value is more than likely going to be diluted with additional shares, the company is going to burn more cash, and the stock is probably going to break downwards, because of the reasons above, out of the current symmetrical triangle, barring any positive news releases.
Comments, please.
Regards,
Haeoh |
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