What BLG is doing is complex!They have just about completed the...

What BLG is doing is complex!

They have just about completed the move from CMs to a fully vertically integrated manufacturer. This gives them a significant boost in the speed in which they research, develop, enhance and refine their products. The number of short/long loop runs are now on steroids compared to the CMs.

Full vertical integration has only existed for a few short months. I think it would be fair to watch and wait to see what they can achieve. Customers have been impressed on how much BLG has delivered on their promises in the last couple of years and this will now only accelerate. (I know acceleration is a word that gets loosely thrown around, particularly when doing CRs - but his time, I believe it is different)

JM wants to get to best in class on MOCVD and then release RPCVD products to leapfrog the competition on existing products and bring new products to market. Moving straight to RPCVD will make it more difficult to prove MOCVD design, processes, etc and get them up to scratch. This will ensure maximum value add for RPCVD.

JM has in recent times has started to talk up RPCVD. I would imagine this is because his focus was on getting MOCVD done right initially, but now, with the MOCVD improvements made he can now see more clearly the path for RPCVD. DFB, tunnel junctions, Gavnix VCELS are coming.

The BLG SP got a jump in Jan/Feb with the announcement of products. I believe there were quite a few new shareholders who jumped in, looking to diversify their WBT (or other tech stock darlings) holdings. Unfortunately, shareholders who like to jump, often continue to jump, unless the SP keep rising.

I note Pitt St have SP targets for WBT - $9.56 and BLG $0.20. Both seem reasonable, but the market is controlled by humans with divergent investment thesis.

There will be another CR. We don't know when and we don't know what the SP will be at that time. Just remember, BLG is doing development faster than it has ever done and there is a good chance SP accretive news will occur well before the next CR. Should I buy now, wait for further SP decline or wait for the CR? Time will tell the correct answer.