GT Advanced Technologies Inc (OTCMKTS:GTATQ) witnessed a massive rally in the overnight trading session. The stock surged by close to 69% on the back of 4 times the average daily volumes, which is considered to be a bullish sign. On the back of the price volume action seen during the trading session, the stock was able to move above all important daily moving averages. The relative strength index for the stock has given a fresh buy signal, which is a bullish sign. Traders believe the stock could head to levels of $0.403 in the near term, which is seen as a huge positive.
GT Advanced Technologies Inc (OTCMKTS:GTATQ) has decided to auction sapphire furnaces that it bought with the help of a loan from Apple Inc. (NASDAQ:AAPL). It rose 60% after making this announcement.
As per the reports, the date of the auction is November 23, 2015. Whatever proceeds are received as part of this auction, will be divided between GT Advanced and Apple.
Anything that remains unsold at the end of the auction will be handed over to Apple, which will turn the equipment into scrap and use accordingly. GT Advanced intends to put at least 600 furnaces for auction.
Insights On The Matter
Earlier, Apple had filed a claim worth $439M against GT Advanced, which is still waiting to be approved by a bankruptcy judge. This agreement is likely to put an end to this claim. Right after Apple filed a claim against GT Advanced, it had promised to sell at least 2,000 sapphire furnaces to pay off this amount; however, the company hasn’t sold anything as of now.
Apple’s Mesa, AZ facility is set to be converted into a data command center. GT Advanced was given a deadline of December 31, 2015, to get all the furnaces out of this offices. Apple had to file a claim against the company after it failed to do so.
As soon as it announced that it had successfully cracked a debt-deal with Apple, shareholders responded quickly, and the price of company’s stock rose as much as 60 percent.
GT has made many changes in its senior management team of late. After former CEO Tom Gutierrez had announced his retirement, David Keck was appointed as the new CEO. The management had hoped that he would turn the fortunes for the company, but he couldn’t manage to get things in the desired way.
GT Advanced will share further updates regarding this auction from time to time.