mooter, one of the many reasons for my interest in VLNC is that it has the "potential" of demonstrating a "J" curve, just as GATE had. However, it serves no one to downplay the financial risks of the situation. Mr Murphy had a good three year party with VLNC and who knows how long "he" plans to stay at that party.
Furthermore, the analogy to GATE ar more striking than at first sight, Altera and Xilinx are replaced with Sony, Panasonic and Tadiran, all companies with much greater resources and existing presence for many years in the field of batteries and Li batteries in general, just as ALTR and XLNX have in the ASIC business.
The financial parallels involve Idanta and CC, both wanting to make an investment in a "great potential" but covering their buts with types of securities that will let them step away with their capital intact in the event things do not pan out, leaving existing common holders to hold the bag.
I invested in GATE, at what I thought might be the "right time" and may invest (already did two short trips to get the "feel" of the stock) in the future, but will not do that based on the assumption that VLNC will produce more then the world demand. If indeed they have that kind of capacity, it will result in a situation that plagued the DRAM makers for the last three years, and "shallow pockets" will simply die.
Zeev |
