Sour Taste for Emcore
That's trouble if it's true, because it's the solar business -- not optical components, sorry! -- that's driving Emcore's valuation... which fell to about $386 million yesterday: Shares were down $2.05 (23%) to $6.78 (and are down another 8 percent today).
Apparently people noticed the report. (I got clued in by Andrew Schmitt at Nyquist Capital -- whose blog makes for an informative reading list, by the way.)
Left points out Emcore's continued losses and its relatively small cash pool, but the bulk of the analysis goes to taking apart Emcore's customer announcements. Many are with small solar companies that Left considers suspect.
Emcore countered the arguments late last night, with CEO Reuben Richards saying in a press release that a certain blog's postings (presumably Left's) "are materially inaccurate and seriously misleading." (See Emcore Defends Itself.)
In the same way optical networking bubbled up and burst, so will parts of the green industry. I'm not saying Emcore is doomed specifically, but consider: Last month, Harper's ran a compelling article saying that the next bubble is inevitable and that alternative fuels and solar power are looking like ripe candidates. Meaning some companies, good and bad, will get overinflated and will crash hard.
Won't George Gilder be pleased.
— Craig Matsumoto, West Coast Editor, Light Reading