Hi, Darkgreen,
Just a couple (alright, more than a couple) of remarks in response to your note:
First, as you imply with your highlight, I do not consider the financing issue settled. My note had no such intent or implication.
I posted the note because I found it interesting that so far FMK has been right that financing would not prove fatal. FMK may have missed many of his predictions, but on that one matter he has been proven right to this point -- despite all the contrary predictions of others over the last six months. Why he has been right, I don't know. How much longer he will be right, I don't know. But for now, score one for FMK.
Second, of course the additional hiring and equipment purchases add to the costs and, ceteris paribus, diminish its cash. I just find it interesting that Lev would be willing to incur such cash drains in light of the cash situation. It may or may not prove foolish in the end, but I find it interesting that he is willing to take the gamble. Of course shareholders risk dilution, perhaps substantial dilution, and even insolvency, but then Lev is a shareholder too.
Third, I didn't spin the CC deal -- didn't even mention it.
Fourth, what is the basis of comparison for your conclusion regarding execution? I am not aware of any competitor which has "executed." Why would you expect their record of execution to be smooth when no one else has executed either? How do you know the investment community thinks it cannot execute? By valuation measures, the stock price is surprisingly high for such a conclusion by the investment community.
Fifth, how do you know the li-poly costs are likely to be "substantially increased?" What costs? Why "substantially increased?" I have yet to see any cost numbers for li-poly, li-ion, or anything else.
Sixth, how soon is "soon?" Doesn't this apply to practically every technological gizmo we can think of?
Seventh, of course there are other investment opportunities in hi-tech, but which are the sure-things? 20-20 hindsight doesn't count.
Finally, what's wrong with the chart?
Regards, lws |
