Replies to post #1655 on GT Advanced Technologies Inc fka GTAT

[Unclear]

$78 by next year? lol Margolis losing his mind

[lecorb]

CLSA slashes GT Advanced forecasts on low sapphire yields • 1:16 PM


•While GT Advanced (GTAT -5.3%) now has 2K+ sapphire furnaces installed in Arizona for iPhone cover glass production, its yields could be soft due to "poor quality alumina" (the raw material used for sapphire boules) and "immature process yields," writes CLSA's Mark Heller.
•Heller thinks GT and Apple may have tried to use alumina from "a cheaper, less reliable supplier in China," and that GT is now trying to secure higher-quality material.. He also reports iWatch sapphire production is being handled by Asian suppliers.
•His 2014 revenue and EPS forecasts have respectively been cut to $500M and -$0.30, well below a consensus of $686.8M and $0.07.
•Shares are now down 26% from a July 2 high of $20.54, thanks in large part to two downgrades on July 7. They go for 1.7x 2015E sales.
•Earlier: KGI on the 5.5" iPhone's sapphire cover glass