GT Advanced Technologies Inc. (NASDAQ:GTAT)

CAPS Rating: 3 out of 5

GT Solar International designs and manufactures equipment that is used to produce solar wafers and cells. It also provides services for the production of photovoltaic wafers, cells and modules, and polysilicon."

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Member Avatar GTK1004 (98.07) Submitted: 4/8/2014 8:19:25 PM : Outperform Start Price: $17.05 GTAT Score: -7.63

apple play but risk due to meeting apple's demand

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Member Avatar yippiekiyeh (99.57) Submitted: 4/8/2014 1:19:41 PM : Outperform Start Price: $16.71 GTAT Score: -5.95

Their main focus is sapphire crystal for smart phone displays. Any company associated with AAPL is going to get some love just by being associated with the iphone and ipad.

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Member Avatar cameo86 (< 20) Submitted: 3/18/2014 9:08:23 PM : Outperform Start Price: $18.55 GTAT Score: -13.93

Hyperion Technology
http://www.youtube.com/watch?v=uLwARB1qlI4

Not just exclusive technology to apple, it can produce for anyone and retrofit solar, consumer and military industries with their research and development.

Costs were estimated that GTAT could produce the saphire matierial at $11 that number has now been reduced to about $6 and corning can produce it at $5 per screen. Whos going to the better tech, apple prides themselves of top of the line products. They are also sick of taking back cracked glass from Cornings gorilla glass. Saphire is 2nd only to diamonds in scratches and durability.

Exactly how the company plans to dominate the mobile market by putting its technology in every single phone.

How it’s dramatically driving down costs and boosting efficiency – two critical factors to success.

Between February 5 and February 10, GTAT shares shot up 28% on news that Apple (AAPL) has confirmed its commitment with GT to advance sapphire technology for its product line.

Yet many analysts and investors remain unconvinced.

They believe yesterday’s selloff was due to concerns that GT’s sapphire screens won’t be used in the upcoming iPhone 6.

They couldn’t be more wrong.

I’m standing fully behind my initial call – that investing in GTAT now is the smartest way to play the future of sapphire touchscreen technology before it’s begun. Here’s why…

Reason #1: Driving Down Costs

As I told Wall Street Daily readers, the main reason why Corning’s (GLW) Gorilla Glass is used in mobile phones instead of sapphire is simple: cost.

Gorilla Glass costs $2 per screen, while sapphire is around $20.

However, it’s important to note that sapphire production costs have already come down significantly – the price was $30 per screen last summer.

But there’s more work to be done, so how will GT keep pace going forward?

Well, there’s a critical factor helping drive costs down even further: GT has much better technology that’s helping boost manufacturing efficiency.

Simply put, we’re talking about a furnace that makes synthetic sapphire.

You see, the leading reason why sapphire screens used to cost $30 is the fact that you couldn’t grow sapphire in high volume. There were impurities that led to several unusable sections of the end product.

But over the years, GTAT has made several strategic acquisitions to help address these issues…

August 2011: The $80-million acquisition of Confluence Solar for its HiCz – a technology that enables production of high-efficiency monocrystalline solar ingots.

November 2012: The $10-million acquisition of Twin Creeks Technologies for its ion implantation technology that produces lower-cost substrates.

March 2013: An exclusive distribution agreement with Intego GmbH, which allows GT to market and sell Intego’s automated sapphire inspection tools.

May 2013: GT spent an undisclosed amount of cash, plus 3.4 million shares, to acquire Thermal Technology’s production equipment.

Alongside these acquisitions, GT has also invested heavily in R&D efforts. That’s resulted in the company delivering significantly more screens per furnace run, with smaller raw material costs.

That, coupled with its acquisitions, means GT now has the most advanced technologies – which has improved efficiency.

For instance…

GT now uses a next-generation ASF 200kg furnace instead of its previous 115kg furnace, allowing for a 74% increase in synthetic sapphire size.

GT is also using Intego’s Sapphire Inspection Tool, which yields 20% to 30% more usable sapphire per batch by improving its uniformity and reducing the amount of wasted sapphire.

And by acquiring Thermal Technologies, GT now uses the company’s improved annealing furnace, which allows sapphire screens to be finished at a lower cost, with a higher volume of screens per hour. It boosts cycle time efficiency by 20%.

But perhaps the greatest factor driving down sapphire costs is Apple’s love affair with the material…

Reason #2: Apple

During a conference last year, GT CEO, Tom Gutierrez, made a bold statement…

He claimed that GT’s first-generation sapphire screens would be manufactured for $10 above the cost of today’s “strengthened glass.”

That’s $12 per screen!

Now, it’s simple economics that higher volume and greater efficiency would drive sapphire prices down. But when I heard this, I knew that a drop to nearly single digits in such a short time meant that the Apple collaboration rumors had to be true.

And that was confirmed last week.

Apple spent $114 million to buy a sapphire production facility in Mesa, Arizona and struck a $578-million deal with GT for the company to produce sapphire inside its 1.3-million-square-foot, solar-powered factory.

This explains why GT’s 2014 revenue forecast showed an 80% bump in sapphire sales.

And the heavy hitters are waking up to the opportunity with sapphire, too…

Reason #3: Morgan Stanley

Morgan Stanley (MS) recently disclosed a $6.7-million (5.3%) stake in GT.

Do you think the company would throw that kind of money around if it didn’t think GT’s sapphire business was viable?

No, me neither.

And Morgan Stanley isn’t the only one buying into GTAT…

Like I do, these institutions see any weakness in GTAT shares as an opportunity to buy into the future of touchscreen technology on the cheap. And you can see how the strategy has impacted the share price.

I don’t know about you, but it seems pretty wise to invest in a company that’s leading the way in one of today’s little-known, but fast-growing, tech trends.

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Member Avatar FoundryOnStocks (31.97) Submitted: 3/17/2014 2:49:58 PM : Outperform Start Price: $17.11 GTAT Score: -7.50

$24.00 Price Target by March 2015

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Member Avatar markofzorro (25.89) Submitted: 3/13/2014 11:22:02 AM : Outperform Start Price: $16.61 GTAT Score: -4.62

GTAT is a ~2 billion cap company with a stock price is up 500% since last March. Has it run up its max or is this a bubble? Probably not.

The company makes sapphire crystals used in phone screens and photocells, but it's primary business is making the machines that make these products. The stock popped when Apple announced a huge factory in Arizona that will house a bunch of GTAT-owned-and-operated furnaces making materials for screens. According to the company, the great majority of their efforts will focus on bringing this major facility on line this year. While very promising, GTAT is taking almost all the risk and Apple is not committed to buying the output — though it probably will if the factory works as expected.

Sapphire crystal is vastly better than glass for many applications as it is far harder and nearly impossible to scratch, weighs less, and can be made thinner. The biggest drawback is cost — it costs 5 to 10 times more than its nearest competitor, Gorilla Glass, and large pieces shatter more easily than glass, probably limiting application to phones and watches.

Costs of GTAT sapphire have fallen rapidly and are likely to continue to do so.

GTAT's research and acquisitions are focused on cutting prices and raising volume and quality. For instance, the Hyperion Ion Cannon implants hydrogen ions 20 microns below the surface, which allows a crystal wafer to flake off with little or no use of saws.

While GTAT's immediate future is bound up with the big Apple project, it also makes innovative furnaces used to make solar cells and panels, a rapid growth segment, albeit there has been a glut of capacity here. Again GTAT has exciting new disruptive technologies for silicon carbide lights, which are cooler and more efficient than LED lights. Don't expect to see any revenue soon, but this may be a big winner down the pike.

In sum, GTAT has great innovative technology and is moving aggressively to build and market new products. They appear to have bet the ranch on the Apple deal in Arizona. If it works out, they will make a ton of money in 2014 — or lose their shirts. They have a deep lineup of innovative products in for allied applications and a bright future in the long run.

All this depends on the Apple deal, so I'd consider this a speculative stock, albeit a promising one.

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Member Avatar naughtyguy (30.92) Submitted: 3/10/2014 9:53:01 PM : Underperform Start Price: $17.87 GTAT Score: +10.34

good company but overbought!

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Member Avatar jamowood (< 20) Submitted: 3/7/2014 4:25:45 AM : Outperform Start Price: $16.93 GTAT Score: -5.61

Meets all Rule Breaker guidelines for explosive growth

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Member Avatar IBDvalueinvestin (99.63) Submitted: 3/4/2014 12:24:05 PM : Outperform Start Price: $13.06 GTAT Score: +19.65

This has the Potential to be one of 2014's best stocks.

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Member Avatar tyler91988 (61.27) Submitted: 2/26/2014 2:12:30 PM : Outperform Start Price: $14.70 GTAT Score: +6.58

Partnership with Apple will only expand, as well as the demand for "unbreakable" touchscreen devices.

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Member Avatar lpina2mi (47.82) Submitted: 2/25/2014 10:12:19 PM : Outperform Start Price: $13.95 GTAT Score: +12.46

It is becoming a misnomer to name Technology as its own sector. More and more, technology is becoming part of all processes from finance to medicine to education et cetera. Instead, I aim to differentiate the processes and try to capture the different components that drive them. Over time, due to the nature of innovation, the processes change, die, and are created anew. GTAT reflects a piece of this.

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Member Avatar EPS100Momentum (71.89) Submitted: 2/25/2014 9:29:40 PM : Outperform Start Price: $13.95 GTAT Score: +12.46

Sapphire Glass - The Next big thing for Electronic Touch Surfaces.
Apple Corp. has already bought into the idea, have you?

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Member Avatar greg1098 (< 20) Submitted: 2/24/2014 5:13:14 PM : Outperform Start Price: $14.46 GTAT Score: +8.47

with its monopoly on sapphire phone screens it was destined to $18 per share but wirh their solar testing results and the increase of expectations with other energy companies this is a $22 stock easy. If a larger bank or top 5 investors jump it this stock could soar and be the top stock for the next 2 years.

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Member Avatar moonlightsail (< 20) Submitted: 2/24/2014 1:47:58 PM : Outperform Start Price: $13.78 GTAT Score: +14.21

Making sapphire glass for Apple products!

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Member Avatar Miketmah (56.84) Submitted: 2/18/2014 9:45:33 PM : Outperform Start Price: $12.47 GTAT Score: +25.02

apple backing may transform sapphire glass into the next gorilla glass

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Member Avatar Aaryan (22.57) Submitted: 2/11/2014 10:10:37 AM : Outperform Start Price: $11.40 GTAT Score: +35.00

Going up!!!

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Member Avatar dvdb36 (< 20) Submitted: 2/3/2014 8:38:42 AM : Outperform Start Price: $10.36 GTAT Score: +47.26

A solar powered Iphone? I'm in!

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Member Avatar 1badbeerad (43.80) Submitted: 2/2/2014 10:11:10 PM : Outperform Start Price: $10.22 GTAT Score: +49.38

Sea cruise.

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Member Avatar CheerUp (66.41) Submitted: 1/30/2014 11:25:35 PM : Outperform Start Price: $9.90 GTAT Score: +53.72

Commitment from Apple for sapphire touch screens. Brief history of company here http://seekingalpha.com/article/1957211-gt-advanced-technologies-future-is-unbreakable?source=yahoo

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Member Avatar Kimer62 (53.57) Submitted: 1/26/2014 11:08:58 AM : Outperform Start Price: $9.01 GTAT Score: +67.35

Big contract with Apple for the sapphire screen plant being built in Meza, AZ. Refer to an article by Matt Margolis on Seeking Alpha this morning! Very well written and thought out!

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Member Avatar eksummers620 (66.71) Submitted: 12/3/2013 9:29:44 PM : Outperform Start Price: $9.17 GTAT Score: +67.49

Sapphire is the new gorilla glass

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