Posted on 10/06/2014 8:27:22 AM PDT by SeekAndFind
GT Advanced Technologies is filing for bankruptcy.
In an announcement on Monday, GT Advanced, which makes sapphire displays that many investors hoped would be in Apple's newest iPhone, said it was filing for Chapter 11 bankruptcy.
Ahead of the announcement, shares of GT Advanced were halted for trade.
After re-opening on Monday, shares of GT Advanced were down more than 90% to $1.06.
Ahead of the announcement, GT Advanced had a market cap of about $1.5 billion, and after the collapse in the share price on Monday this had fallen to about $175 million.
In early September, shares of GT Advanced got crushed after the company's sapphire displays were not in the latest version of Apple's iPhone 6 and 6 Plus. Over the past month, the stock had fallen about 35%, to just under $11 from about $17 per share.
GT Advanced, however, signed a multiyear agreement with Apple last November to supply the company with sapphire material. That agreement included a $578 million prepayment, which GT Advanced is set to repay Apple over a five-year period starting in 2015.
Apple's Watch, which is set to be released early next year, will include a sapphire display.
(Excerpt) Read more at businessinsider.com ...
ruh-roh
This has to be a misprint. After all, last April CNBC stock wizard Jim Cramer picked Adv Tech as a winner.
Here's a snip:
Looking for an affordably priced stock? Cramer hears you. And in the $10-$50 price range, "I like GT Advanced Technologies," said Cramer. Although the stock has already made significant gains, "I think it has what it takes to keep rallying."
http://www.cnbc.com/id/101573666#.
I think it is becoming more affordable, if you like owning stock. Less so for those wanting investment gains.
Apple snaps them up for a song in 3...2...1
I hear Corning Glass is still in business.
“ruh-roh”
No kidding. I came within an inch of buying that stock very recently. Whew!
So, would this be a good time to buy a thousand shares? Or would that be throwing money away?
GT makes transparent aluminum. Not glass.
“So, would this be a good time to buy a thousand shares? Or would that be throwing money away?”
They make synthetic sapphire. It turns out it isn’t a great material for smart phone screens. The Corning Gorilla Glass is much better in that application. The sapphire would be great in a smart watch, but I am skeptical about that product really catching on. I have decided not to invest in them. Corning is going to be selling a lot of Gorilla Glass for some time to come.
When Fruit of the Loom was going under I bought 1000 shares at around 1.18 each. It looked like bankruptcy would happen and I bailed. Warren Buffet swooped in and bought the company.
I’ve always wondered what would have become of my investment if I had stayed.
Since sapphire "glass" is MUCH more scratch resistant than Gorilla, why is sapphire NOT a great material?
“Since sapphire “glass” is MUCH more scratch resistant than Gorilla, why is sapphire NOT a great material?”
From what I read, it is too hard to be used in a device that must flex a little. Also it has to be made thicker than the glass and can developer micro fissures which can cause problems in a touch screen. These issues don’t seem to be as much of a problem with a watch.
Sapphire glass isn’t going away, it’s incredibly useful. The only problem here is that it wasn’t a good time to invest in it. I believe the product will eventually come back as something worth investing in, just cannot say whether it will come from this company or another.
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