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Lou Basenese  

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  • ImageWare Systems - The Pinocchio Of Small Caps [View article]
    I guess we have different definitions of pumping. In my book, agreeing that dilution was inevitable, saying management deserved the criticism for failing to deliver to date, as well as advocating a trailing stop to protect profits is hardly pumping (check my past articles). I guess that's a textbook definition in your book, though.
    Nov 25, 2014. 08:50 AM | 1 Like Like |Link to Comment
  • ImageWare Systems: -86% Downside, Strong Sell, Smart Money Eager To Sell At $1.05 [View article]
    Just revealed on the call, the line of credit has been increased and extended. Will have to read the transcript to confirm. Regardless, I still agree with you that a capital raise is coming.
    Nov 17, 2014. 05:42 PM | 1 Like Like |Link to Comment
  • Skyworks: The Explosive Growth Catalyst Management Can't Talk About [View article]
    RESN is an extremely under followed, under appreciated company. It's a speculative, long-term investment of mine. It's not a momentum or day trade. In my opinion, the fact shares haven't sold off indicates other investors appreciate the opportunity ahead of the company.

    Your bio says you're a "conservative" investor. Like I said in my article, anyone that's risk adverse should look to capitalize on the technology via SWKS.
    Nov 14, 2014. 10:27 AM | 2 Likes Like |Link to Comment
  • Skyworks: The Explosive Growth Catalyst Management Can't Talk About [View article]
    RESN business model is to charge a royalty per unit, based on the enabled margin, which is approx. $0.34 (slide 10 http://bit.ly/1oUQhnt)

    Based on my research, a standard royalty percentage would be 15% - 25%. It's safe to assume SWKS got a preferred rate for being an early adopter.

    Per the S-1, the rate is already set: "Skyworks has an option to license our duplexer design at already agreed-upon royalty rates upon completion."
    Nov 13, 2014. 06:11 PM | 3 Likes Like |Link to Comment
  • Skyworks: The Explosive Growth Catalyst Management Can't Talk About [View article]
    That's from the Risk Factors section of the S-1, so always written as worst-case scenario. RESN has $15.7 million in cash. Last qtr burn was $1.4m. Expecting ramp to about $2m/qtr. In no danger of running out of money before completing project. Plenty of runway and cash to prevent SWKS from waiting them out to acquire on the cheap.
    Nov 13, 2014. 03:22 PM | 1 Like Like |Link to Comment
  • Skyworks: The Explosive Growth Catalyst Management Can't Talk About [View article]
    Sunnyinpdx - I second that in terms of SWKS approach to M&A. The good news is that strategy won't work with RESN. With $15.7m in cash, they're a long ways from being in financial distress.
    Nov 12, 2014. 04:53 PM | 2 Likes Like |Link to Comment
  • Skyworks: The Explosive Growth Catalyst Management Can't Talk About [View article]
    I agree a healthy dose of skepticism is in order when it comes to any disruptive technology. In this case, RESN has been working with SWKS fabs. They've completed the second-generation design and are now on Milestone 4, which is essentially qual testing, etc. They would know by now if there was a significant change in the cost structure. But they have not changed their estimates of the potential savings, based on public comments.
    Nov 12, 2014. 10:38 AM | 1 Like Like |Link to Comment
  • Skyworks: The Explosive Growth Catalyst Management Can't Talk About [View article]
    RESN doesn't make the filters. They're working directly with SWKS fabs. The process doesn't require any special modifications, either. So it should be a replacement of a high-performance, high cost component for a high-performance, low-cost one for SWKS. That's what makes the potential so significant. Again, safe way to play is w/ SWKS.
    Nov 12, 2014. 10:36 AM | 2 Likes Like |Link to Comment
  • Skyworks: The Explosive Growth Catalyst Management Can't Talk About [View article]
    Thanks, Alpine. A little clarification. The IP isn't being co-developed. RESN has developed it all and retains all rights, per the development agreement. They currently have 20 patent grants and 20 apps with more applications in process. The only way SWKS would be taking it around is in a design, which would mean RESN has officially commercialized the tech.

    Regarding Intel, I've done a patent search and analysis. RESN is using a completely unique approach. To date, no other company is doing anything similar. All other RF designs rely on the “acoustic wave ladder” approach, which came about in the 1930's.

    As for RESN's stock price, it's a development stage company. As such, share prices tend to be driven by milestones more than anything else. Instead of taking the risk, I believe some investors are wtg for the fourth milestone to be completed.

    And I like your idea of INTC buying SWKS... after SWKS buys RESN, of course. :-)
    Nov 12, 2014. 07:31 AM | 3 Likes Like |Link to Comment
  • Parametric Sound: A Turkey's Desperate Attempt To Avoid The Chopping Block [View article]
    I'll own being wrong here. Original entry on first position was $5.60 and took profits at $12.28 and $10. Adj cost basis on second position of $9.16 has not worked out at all. I'm still long b/c I believe in Hypersound's ultimate potential.
    Nov 12, 2014. 07:22 AM | Likes Like |Link to Comment
  • Skyworks: The Explosive Growth Catalyst Management Can't Talk About [View article]
    Thanks, Cambridge. It's definitely relevant to RFMD, too. Especially in light of the merger with TQNT. My sources suggest discussions with TQNT have occurred. SWKS has the first mover advantage, though.
    Nov 11, 2014. 11:46 PM | 2 Likes Like |Link to Comment
  • Skyworks: The Explosive Growth Catalyst Management Can't Talk About [View article]
    One could make that argument. But for SWKS, the IPO was a low-risk way to have someone else pay for the development of the tech. Why pay for a tech that's unproven when you can wait until it's 100% proven? If it works, there's more than enough margin and market opportunity for SWKS to earn back a higher purchase price many times over. Incidentally, I do believe SWKS ultimately tries to buy RESN if the tech is proven.

    I get the AAPL-GTAT comparison, but it's apples to oranges. GTAT ran a biz that required massive spending and holding inventory. RESN is capital light, isn't producing inventory and has ~ 2 yrs cash.
    Nov 11, 2014. 10:44 PM | 4 Likes Like |Link to Comment
  • Skyworks: The Explosive Growth Catalyst Management Can't Talk About [View article]
    Ultimately, yes. There are ~ 25 BAW to SAW band opportunities and SWKS only has a limited exclusivity on the band specified in the development agreement. However, the increased upside for RESN comes with increased downside risk, which not everyone is comfortable with.

    RESN is also working on a tunable filter, which is considered the "holy grail" in the industry. This article was running long already and the tunable design isn't directly related to SWKS. Not yet at least. I'll have to put together another article on RESN that covers it in depth.
    Nov 11, 2014. 10:27 PM | 2 Likes Like |Link to Comment
  • Park City Group: An Imaginary Growth Story With 65% Downside [View article]
    ReposiTrak is generating revenues, which is enabling them to pay the management fees to PCYG in cash. By middle of next year, ReposiTrak is expected to be cash flow positive:

    We currently expect that ReposiTrak will begin generating positive cash flow by mid 2015. According to the terms of agreement, we have provided a $5 million line of credit that ReposiTrak can use to fund its operations. We expect the amount drawn on this line will likely peak during this fiscal year and then begin to decline thereafter.
    Nov 10, 2014. 09:38 AM | Likes Like |Link to Comment
  • Park City Group: An Imaginary Growth Story With 65% Downside [View article]
    The omission was an accident on my part. My bad. The breakout wasn't included this quarter, which I assumed meant it was all paid in cash, based on the note below in the 10-Q. But I'm going to confirm with mgmt to be sure:

    Management fees, consisting of reimbursement of expenses incurred on behalf of ReposiTrak, totaled $230,000 and $165,000 during the periods ended September 30, 2014 and 2013, respectively. Of the $641,000 in fees paid to us during the quarter by ReposiTrak, approximately $400,000 was paid by ReposiTrak in cash from proceeds of promissory notes purchased by the Company.
    Nov 10, 2014. 01:27 AM | Likes Like |Link to Comment
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120 Comments
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