Look, I recently covered the drama surrounding GTAT. Its going bankrupt, CRUSHING investors. How? It got paid by AAPL.
GTAT's supplier agreement with Apple called for GTAT to produce sapphire for Apple on GTAT's own production equipment in an Apple owned facility in Mesa, AZ. Apple would provide $578 million in 4 prepayments (essentially a loan) for the sapphire with repayment commencing in 2015. As of the end of 2013, GTAT had already received 2 of the 4 payments totaling $225 million. But the company has BURNED cash dramatically and when it wasn't selected for the iPHONE, smart investors bailed out. Did the CEO mislead investors? YES and NO. I suspect there will be tons of lawsuits. For now. the stock had rebounded to almost $2.00 giving investors a chance to get out, but has now dropped back to almost a $1.00. Get out of this while you still can, because it is GOING TO BE WORTHLESS IN A FEW MONTHS
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