As my readers know, I have owned GTAT since March, when I bought a sizable chunk at 2.73. It closed today at 8.38, so I am up 207% thus far. Many times on this blog I have commented how they had developed an approach using sapphire to try and get a foothold to replace Gorilla Glass by GLW. The sapphire is much harder and will not crack if you drop your phone.
Well, GTAT reported earnings today, which were miserable by virtually any measure. BUT they announced a five year agreement with AAPL to produce sapphire products for them. It is a major shift for GTAT to go from an equipment manufacturer to actually become an operator and manufacturer of sapphire materials.
While it is unclear what sort of margins they will get from AAPL, this legitimizes sapphire as a product on higher end phones. It will be interesting to see if other smartphone and tablet companies follow AAPL and start using sapphire as well.
It is still extremely early to see how this will shake out for GTAT stock price as they gave a pretty bleak outlook for the rest of their businesses. But the stock is trading up 15% after hours here and if that type of gain holds! it is going to be a very good day for me tomorrow. (Today was an excellent day. )
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1 comment:
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