Seeking Alpha

GT Advanced pares gains as Street looks for more Apple clarity

  • "With rampant speculation around what Apple will or won’t release, we see a balanced risk reward given the information available," says Canaccord, reiterating a Hold on GT Advanced (GTAT +4.6%). Nonetheless, the firm still calls GT well-positioned to "benefit from a move to sapphire cover glass in the handset market, as well as a ramp in solar and some new technologies."
  • Raymond James is now expecting GT's 2014 results to be even more sharply weighted towards Q4, and says its confidence in its estimates remains "subdued."
  • UBS estimates 2014 sales to Apple will now be $150M below what the firm originally expected, and that full-year EPS will get a ~$0.26 boost from the backing out of $44M in costs related to GT's sapphire production ramp.
  • Stifel is staying positive, declaring GT's guidance still implies "continued progress with Apple with increasingly material volumes."
  • With Apple demanding strict secrecy from suppliers, management was predictably tight-lipped about its top client on the CC (transcript). CEO Tom Gutierrez: "I can’t speak to the volumes or the applications or the timing of Apple’s business."
  • Gutierrez did admit there are "exclusivity provisions" related to the Apple deal, but added the provisions aren't all-encompassing. "There are applications that we can sell into, but I am not at liberty to provide a lot of detail..."
  • A new report states Apple is holding a Sep. 9 iPhone launch event.
  • Q2 results, guidance/details
Comments (8)
  • sonicted
    , contributor
    Comments (175) | Send Message
    Unbelievable. These analysts are bad - really bad. "With rampant speculation what Apple may or may not release" - Geez. Doesn't this analyst understand that he is being paid to draw his OWN conclusions?!


    And what can that conclusion only be? GTAT has just reiterated its guidance. The Co' is in the process of a massive sapphire production ramp-up. Isn't it obvious that this is and can only be for the iPhone?! And even if it won't be for this year's iPhone but for next year's - does it really matter?! Does it change the FAIR VALUE of this company?


    The analysts are trying to guess the news flow. They are afraid to draw their own conclusions and come out with a clear-cut view on this stock. No, they first want Apple or GTAT to tell them what will happen! Until then: "Hold". At least that way no one can blame them for being wrong!


    That is brokerage at its worst.
    5 Aug 2014, 03:25 PM Reply Like
  • sonicted
    , contributor
    Comments (175) | Send Message
    What's more: Do these analysts not have price targets of $ 20+ on the stock? Which implies 30%+ upside? And they are telling us to "Hold"? Are these guys for real?!


    I have read a lot of bad research in my life. It never stops.
    5 Aug 2014, 03:28 PM Reply Like
  • Christian C
    , contributor
    Comments (7) | Send Message
    There are 34% of short interests on this stock and they paid analysts to write those lame analysis. There is opportunity now is to hold tight and buy more $GTAT to squeeze out the 34% shorts to push $GTAT to $25+
    5 Aug 2014, 08:17 PM Reply Like
  • Hurtsogood
    , contributor
    Comments (430) | Send Message
    Trust me, these analysts know EXACTLY what they're doing!


    Most likely they didn't get to cover in time.


    Manipulation at it's finest!


    Be well
    6 Aug 2014, 08:03 AM Reply Like
  • ctownzoo
    , contributor
    Comments (55) | Send Message
    I only trust Matt Margolis with GTAT information. He has been spot on with his analysis regarding GTAT. The rest of these "analysts" just through out uncited shady information.
    5 Aug 2014, 03:31 PM Reply Like
  • Jebthedolphin
    , contributor
    Comments (58) | Send Message
    @ ctownzoo, I agree 100%. Matt has pretty much been dead on with his analysis of GT since the beginning. His Q&A today has me really excited about the future of GT (and my portfolio) for the remainder of 2014 and even more so into 2015 & 2016!!! It is a must watch for any GTAT investor IMO. If what he predicts for GT comes to fruition I will be retired much sooner they I anticipated!! Thank You Matt for sharing your knowledge with us!
    Here is the link incase you missed it.....
    6 Aug 2014, 01:23 AM Reply Like
  • JDAdams51
    , contributor
    Comments (114) | Send Message
    I agree 100% ... Matt Margolis has more information and insight on GTAT than anyone. In comparison, I would say the above article is chocked full of nothing new with lots of generalities.


    Sapphire glass will, with 1-2 years, will be on all Apple products... and may be offered (if supplies are limited for the startup) as a limited special order to gauge interest (until supplies build up), at an added cost of course. I am convinced both iPhones and the iWatch will use sapphire glass.


    GTAT is well positioned and will grow to at least $20 and closer to $24 before years end, I believe.
    6 Aug 2014, 01:52 AM Reply Like
  • aksika
    , contributor
    Comments (52) | Send Message
    "GTAT is well positioned and will grow to at least $20 and closer to $24 before years end, I believe."
    Unless the market crashes... I am not worrying about GTAT but the market in general
    6 Aug 2014, 06:43 AM Reply Like
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