It may not always be the case that if something seems to
good to be true it probably isn’t, but healthy skepticism can be an
investor’s best friend. To that end, Akoustis (AKTS)
is both intriguing and confounding. While the idea of disruptive
technology in the RF filter space is certainly appealing, particularly
with an enterprise value of less than $200 million, I think you have to
ask why a company with promising technology and no revenue would go
public through a reverse merger instead of following the more typical
venture-IPO route.
I don’t know whether the worst
accusations against Akoustis are true, but I do know that a lot of what
they’re attempting to do flies in the face of how business normally
works, and I know competition in advanced filters is extremely fierce.
It’s true that Akoustis is targeting markets that can support meaningful
revenue, but with what I regard as unproven technology, unproven
execution capabilities, significant barriers to adoption, and thin
financial resources, this is at best a very risky proposition.
Read more here:
Akoustis Technologies Is A Puzzling Pre-Commercial Tech Story
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