I believe this foretells of the potential this stock has in the short to long term:
Let's remind ourselves that is an OTC BB stock: no major fund can even touch it yet until it trades at least on the Nasdaq and regularly stays over $5...
All the volume we see is from individuals and small size firms.
And the three PR pieces that were just issued sounded more like "heads-up" to me than anything else, because they do not translate to revenue generating contracts yet.
But they certainly pave the way for a major announcement, drawing attention to little known LWLG prior to the long-awaited $$$ generating announcement.
And what kind of announcements should we expect in 2012? In my opinion, we should look at:
- at the share holder's meeting last summer, management told us that LWLG has 3 POs pending at Lockheed Martin, one of them already signed and ready to go, pending project funding from the US DOD. President Obama released DoD funding while on vacation in Hawaii this past week and Leon Panetta is supposed to announce today what projects in the DoD are going to experience funding cuts... It sounds to me that DoD suppliers should be seeing the funding for their projects in the coming few weeks / months, so I expect a confirmation of at leasst one order from Lockheed shortly.
- the Dec 15 release announces that LWLG has fulfilled with Perk Indigo all technical requirements requested by the unnamed micro-electronics manufacturer. The way I read that release, it sounds like LWLG tell that customer: either you confirm that you like it and we need to sign a $-generating contract, or the next guy in the waiting line will be happy to take it if you don't... Just my read on things... This to me is the contract that opens the door to the 300-500 Billion (with a B) chip market by 2015 that Phil Smith mentionned in last Spring presentation. And 1% material royalty on 10% of that market would translate to $500 million in annual revenue in the next four years...
- Then the latest announcement, clearly says that based on the collaboration that LWLG has developped with Fred Leonberger since last spring, they are approaching commercialization stage with a manufacturing partner for spatial light modulators. These modulators are the one's that Terry Turpin has been waiting for, for the past 8-10 years, to bring to market speed improvements in the order of 30,000 x for applications like surveillance (face recognition) or encryption technology...
Yes, to me the past PRs were the apetizers to a FEAST that LWLG should be serving during 2012: so fellow board members, do all Due Diligence before you invest, but be ready before the FEAST begins, or IMHO, you will have to pay dearly to catch up once the
train leaves the station - or as Phil Smith put it, probably 18 months too early, the rocket clears the launchpad-.
Let 2012 roll, then the major funds can come in and try to grab positions, which incidentally should help us out greatly in the following few years.
AR.
Discl. : Long LWLG.