EMCORE Corp (EMKR)

ResearchLover (< 20) Submitted: 4/03/08 6:23 PM : Start Price: $6.73 EMKR Score: -43.41

Who'd have thought they were a solar play?? (Among those of us that didn't (yet) look past the one sentence company profile or recent heated depate -See recent news on their sale to a Spanish firm, and google EMKR citron report). I think there's no technical reason to buy now, no firm bottom. But what the recent volatility tells me is that people don't trust the value of the fundamentals of an allegedly unprofitable company. In this case, I'll go on the assumption that they have innovative products in some very hot growth markets, incorporation of energy-saving LEDs into infrastructure, and components for broadband, wireless infrastructure. Plus, putting aside the comment from a person who worked there, even if the decision makers at EMKR weren't very bright, they are at least Don Quixote types, going up against this Citron report. And they're buying their own stock now en masse. Could an insider even use those shares to cover short positions?





So maybe that little push of contrarian thinking is what they needed to show what they're made of. To Wall Street, anyway. I think IRL, I may actually put a small sum of money on a long EMKR position. Nonetheless, it is risky if one takes the comments from Sandia solar researchers that the Citron report cites in its rebuttal of EMKR's rebuttal of the original thumbs down from Citron. I ramble and waffle here because I think the stock price will reflect the back and forth nature of a heated debate--but if that's keeping insiders invested, then I think they'll keep firing back at least until their cash burn rate requires that they need more investment/dilution of their interest. And at that time, there would also be a requirement for them to keep firing back about how much they believe in their technology. The whole market doesn't have to believe EMKR for their funding to be sustainable, and for their technology to maintain the *potential* to tap into their target hyper-growth markets, and those two things are in fact all they need for Wall street to keep reconsidering their value. Speculative plays lose a lot of steam in a contracting market, and that is the one fundamental risk for investing right now. But what about when speculator money returns from hiding?

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