RE: Is this a good news or bad one?The market seems to view the announcement as negative as reflected in the drop in share. I believe the announcement may have been read wrong.
The use of the 2006 in the announcement may have been viewed negatively. The use of 2006 is unfortunate because the real number is the 14 months to complete the plant and pilot (or more accurately confirm) the production.
The plant will be complete in April of 2005.(on schedule). IFire then will produce TV's as the technology moves through this phase and into commercial production. I believe there will be TV's available in December for Xmas of 2005. THEN the volume production will happen during 2006. The maket has view the annoucement to say that iFire is only building a pilot plant when infact it is a production plant they know will work but need to prove it in operation as part of the agreement which allows iFire to prove its manufacturing cost advantage over other flat panel display technologies.
The borrowing of $10 milion to finance the production plant may have been viewed negatively. But this is part of the agreement previously negotiated and was intelligent because it uses DNP's money. And they will have futher cash from the sale of Ambeon to complete the plant. I see no problem in the financing.(???)
It appears the maket may have over looked that "iFire retains all rights to its proprietary technology.", and can sell to any Company. It will likely give DNP via Sanyo the first advantage, but the market place will be wide open to iFire. In 2006 iFire will be rolling in money.
And yet investors are selling today. Seems short sighted. Perhaps I've missed the obvious, time will tell.
jmho
cheers
h