This is my friend's take on today's news: As I
Post# of 22456
(Total Views: 312)
Posted On: 11/19/2018 2:04:38 PM
This is my friend's take on today's news:
As I read it, 1 million is only enough to fund 9 months of operations, but up to 5 years if they continue to defer comp as successfully as they did in 2018 (from most recent 10K financials. Its not clear what the royalties will be, or the regular income, or the construction schedule.
So its great, but not huge. But despite its smallish size, this $1M+ solves a number of risk issues:
1) A sophisticated government agency has paid $1M+ for the tech we have. This makes the con-game argument seem a bit thin.
2) $1M plus income stream substantially reduces the risk that the company will run out of cash in the next 2 years,despite having great enterprise potential.
3) Endorsement of the Indian Government will make deferred comp and other forms of credit more available, essentially allowing QMC to leverage this win.
4) Choosing India over China feels more solid in terms of IP risk. India may want to steal the tech as much as China, but I'm somehow not as worried.
5) Choosing solar as the first step (vs. displays) feels more recession-proof, especially with India's 175 GW goal coming due in only 4 years. The net result is that I feel good having some QTMM stock for cash needs over the next while as we resolve this bull market. Others may feel the same, buoying the SP.
I tripled my daughter's holdings this AM on the news and may increase ours as well if prices dip. Since QTMM is fairly overbought right now (RSI technical indicator), it may pull back a bit this afternoon, gaining 7-15 percent a day over the next week as this news melts the market's sense of risk on QTMM. Then again, this PR could bring in new buyers, allowing us to escape our RSI range and climb fast. That's hard to predict.
Ultimately, this is good timing. If we do have a tech-led "melt-up" coming as a blow-out for this bull run (before a "melt-down"
, QTMM can now participate.
As I read it, 1 million is only enough to fund 9 months of operations, but up to 5 years if they continue to defer comp as successfully as they did in 2018 (from most recent 10K financials. Its not clear what the royalties will be, or the regular income, or the construction schedule.
So its great, but not huge. But despite its smallish size, this $1M+ solves a number of risk issues:
1) A sophisticated government agency has paid $1M+ for the tech we have. This makes the con-game argument seem a bit thin.
2) $1M plus income stream substantially reduces the risk that the company will run out of cash in the next 2 years,despite having great enterprise potential.
3) Endorsement of the Indian Government will make deferred comp and other forms of credit more available, essentially allowing QMC to leverage this win.
4) Choosing India over China feels more solid in terms of IP risk. India may want to steal the tech as much as China, but I'm somehow not as worried.
5) Choosing solar as the first step (vs. displays) feels more recession-proof, especially with India's 175 GW goal coming due in only 4 years. The net result is that I feel good having some QTMM stock for cash needs over the next while as we resolve this bull market. Others may feel the same, buoying the SP.
I tripled my daughter's holdings this AM on the news and may increase ours as well if prices dip. Since QTMM is fairly overbought right now (RSI technical indicator), it may pull back a bit this afternoon, gaining 7-15 percent a day over the next week as this news melts the market's sense of risk on QTMM. Then again, this PR could bring in new buyers, allowing us to escape our RSI range and climb fast. That's hard to predict.
Ultimately, this is good timing. If we do have a tech-led "melt-up" coming as a blow-out for this bull run (before a "melt-down"
, QTMM can now participate. 
(1)
(0)Quantum Materials Corp. (QTMM) Stock Research Links
Scroll down for more posts ▼