There is so much to like about todays report and webinar.
- Coby explaining that the contracts they are signing are worth millions and the money we have seen so far is just portions of payments.
- This was the first time I heard him say he wants to take over the embedded market. Suggesting Weebit is targeting the lions share.
- First time he has said that product companies are now lobbying Fabs to offer Weebit ReRam.
- I like that he cant go into details due to NDA on some fabs. NDA's are not entered into between companies that have no business together.
- First time he has come out and said he is aim to overachieve his performance targets.
Also when you consider what the NVU guys had to say yesterday about their product scaling down to 16nm using WBT ReRam. Given that NVU currently uses TSMC, is it possible that WBT is close to signing with TSMC? GF is another possibility at 16nm and the last couple of times Coby has been asked about them, he doesn't want to discuss due to NDA.
The NVU guys are also seeking to Mass produce next year, which would suggest GF might be the answer, given that it takes 18 months to transfer tech and qualify from scratch, meaning the transfer need to have already begun. Having said that, the NVU guys also mentioned they manufacture at TSMC and gave no indication of that changing, so who knows. Maybe our dreams could come true with an architecture agreement with TSMC (relax naysayers, I agree its wild speculation, unlikely and just a bit of fun to think about).
As I am sure I have now opened myself up to criticism for being unrealistic, I think I will touch on the valuation issue being discussed today. From my perspective the company is not over valued, as the product we are commercialising is IP. The beauty of this is that all the cost of goods sold are incurred prior to the first sale. From then on you can sell as much of it as you like (or can) for little to no additional cost. In mining, if you expand your identified resource area, in order to achieve value you still need to drill, excavate and process, which all incur cost. With IP if someone else sees your product and wants to use it, it does not cost you anything to license it to them.
From the start Coby and Dadi identified every device on the planet as their target. Now Coby is talking about taking over the embedded market. That alone will be huge, but is just the first step. I have been invested from the early days, and see the big picture about where this company can go. Yes there is always risk, but that risk is what delivers the reward if it pays off. We are finally seeing the first trickle of the dollars seeping in. Looking forward to the river that will follow. I don't know what is possible in the future, but cant help but feel its going to be big.
Despite the depressed SP, the last few talks from Coby have me feeling more bullish than ever.
Just my thoughts.
(20min delay)