Characteristics of a Unicorn
- Disruptive to industry (adopt or be noncompetitive)
- No competition
- Can’t be duplicated i.e. Atomera fenced patent portfolios and implementation know how
- Hyper Growth Potenial (zero to billions in royalties)
- Industry recognition (People, papers, patents, Synopsys conference etc..)
The top question you always hear is why isn’t my stock trading higher? In the case of Atomera the answer is pretty simple. While it is a true Unicorn in the sense there just aren’t any other stocks quite like it, it also isn’t what is striking the fancy of today’s investor. Its not a biotech curing some uncurable disease, its not an Electronic Vehicle company that will be lucky to sell 10k vehicles over the next few years, its certainly not launching into space like dozens of companies all chasing a tiny market or one of the mighty SPACs who nobody really knows what they do but prices keep going up. No, its a company that is going to make lots of royalties for years to come as it gets adopted by the world’s largest semiconductor companies. The good news is there are groups of large investors that look for companies with exactly the combination of disruptive technology, quickly ramping revenues with large earnings potential that Atomera brings to the table. The even better news is these investors, whether we want to call them institutions or investment funds, have arrived. This changing of the guard from retail to institutional ownership will also make it much harder for shorts to manipulate the share price. Long term holders paying into the mid 40s last week will make it even more difficult to find shares to cover the very large short position in the stock.
I don’t usually summarize a week’s trading in great detail but I think we are going to look back at this week’s trading as a changing of the guard in terms of share ownership. For a long time retail has played a significant role in the stocks direction. The volume and price over the last two weeks seem to indicate much larger investors or funds taking over the ownership. Ultimately there are only 22.4m shares outstanding and a much smaller amount in the float. After Wednesdays CC there were a lot of sellers who were looking for a reason to sell and were expecting some major announcement that was unlikely to be part of a year end CC. As can be seen in the weekly chart the stock ended slightly down for the week and the chart looks very similar to when its last big step up. The key piece of information that most investors seemed to overlook is the Phase 4 work that is completing in the very near future. This is the installation and tech transfer of the MST technology in one of the worlds largest semiconductors fabs. From the call it should also be obvious that this fab has multiple nodes. Upon completion, in the very near future, the semiconductor company will then start qualification runs and then head into production. Having done tech transfers many times let me assure you that they are already doing qualification runs as part of the tech transfer. The large semiconductor company will not sign off on the tech transfer unless they are 100% convinced it works. So while they still will run qualification samples prior to starting royalty generating production its a done deal once Phase 4 is completed. This is truly a defining moment in the companies history and marks the next step to industry wide adoption. The second JDA, when announced, is another huge catalyst and will accelerate the rest of the industry to adopt. There are also 9 other customers in Phase 3 that can start Phase 4 at any time.
All weekly indicators are indicating continued upward movement with possible breakout to mid 50’s.
Any due diligence from this site is for entertainment only and not a solicitation to buy or sell Atomera stock. Any estimates are just examples of what is possible and should not be considered financial advise. I have not been compensated in any way and will never be compensated for my reports.