Sorry, Zeev, financing is NOT an issue. Repeat, NOT. With both the CEO and Carl Berg as the largest shareholders, there is no way they would not be acting in their own and shareholder interest, in the amount of money they borrowed this last year, and the way they chose to spend it to develop the factory in NI. First, they would not have proceeded to commercialize it if they had not validated it to equivalent scale in Henderson last summer (which they did); then, they would not have chosen to build as much capacity as they have if they did not estimate they would be able to complete the job and get to production without having to go to the well too many times (recall Lev's comment to a shareholder some months ago, about millions of dollars of new equipment he'd just ordered, and how he wouldn't have done that in a million years if he didn't think they'd be successful); then, having gotten this far, Carl Berg has too much invested to let them wilt on the vine for lack of a few million in loans. Yes, he's guided them to other sources (Castle Creek), which gives him a nice outside source of verification of the investment. But he would not drive them to any situation where he or the rest of the board would truly consider there is any realistic possibility of the kind of 'death spiral' you've waxed on and on about here. Nope. He'd become their lender, in that case, I'm sure of it. Otherwise he'd lose what he'd invested.
Rather, we are all comfortable with the management team, and with the board of directors. We longs are confident that they are acting in shareholder interest (hence their own interest!) in delaying financing until they can do a higher-valued stock offering. Lev told us as much. We're happy to watch him do it.
Clearly, this is unsettling to you, so you are better to remain on the sidelines. Only, when you get the news, the stock will ramp so fast you'll be lucky to pay less than half of today's price. JMO |
