POET Technologies: A Roller-Coaster Ride Doesn't Have To Be A Bad Thing

POET Technologies is rated Strong Buy following a sharp sell-off, with shares now trading below $8 and nearly two-thirds of market cap in cash. POET's $400 million capital raise at $21/share has fortified its balance sheet, enabling aggressive manufacturing expansion and workforce growth to meet strong order demand. Management targets 1 million unit production capacity by 2027, with the current customer pipeline stretching operational capacity. Valuation multiples are set to contract rapidly as revenue ramps, but execution risk remains high given POET's small size and the need to transition from R&D to large-scale production.

POET Technologies Inc. (POET) has once again had an eventful few months since my last article. While I became less optimistic about POET's upside beyond $15 and sold one-third of my position at $15.50 and $20.45, I This article was written by Future Tech Investing 421 Followers Follow I am an individual investor, working at a global technology company. I have an academic background in engineering and business economics and am currently pursuing a PhD in economics. I started investing while attending university in 2012 and have a focus in technology-based growth stocks, particularly in the fields of renewable energy, hydrogen, new mobility and space. As I aim to identify growth stocks for a diversified portfolio early on, the companies I invest in are usually small or micro caps which are not covered by a lot of analysts and SA contributors. I will thus share my thoughts from time to time with articles if I feel there are interesting yet under-evaluated investment ideas to contribute. My investment style is long only and I invest to hold for the long-term. In my analyses, I focus on fundamental topics such as technology, business model and valuation relative to the addressed market.