GT Advanced Technologies Inc (OTCMKTS:GTATQ) was a massive decliner during the trading session on Tuesday. The stock collapsed by close to 17% on the back of high volumes, which were 5 times the daily average volumes. The stock was unable to move above the resistance zone at $0.24 and witnessed huge selling pressure, which points towards bears being in total control at the moment. The stock currently trades below all daily moving averages. The indicator for relative strength has given a clear indication of the strong bearish momentum. Traders see the stock heading to levels of $0.100 in the near term.
GT Advanced Technologies Inc (OTCMKTS:GTATQ) auctioned many of its ASF furnaces. Reports claim that the auction was held towards the end of the November and covered furnaces located in Hong Kong as well as Mesa, Arizona.
A statement issued by the company clarified that GT Advanced would keep the intellectual property rights related to ASF and other key personals who are essential to carry out various activities. GT thinks that their role in the commissioning and installation of the units purchased during the auction will be very important; hence, it’s better to keep all the rights to the company. Going forward, GT will tend to offer all the installation services on different terms put forth by the company in front of the buyers of these units.
According to David Keck, Chief Executive Officer, GT Advanced, this decision will help the company remain active in the business of sapphire equipment. GT will keep hunting for new and better market opportunities in the future to explore the market.
Sharp Surge Post Apple Deal
GT Advanced reported a whopping 60% hike in the stock market after cracking the debt deal with Apple regarding the sapphire. Apple had decided to provide funds to GT as loan, so that it could buy sapphire furnaces. As part of the deal, GT had agreed to divide the overall proceeds with Apple. In addition to this, GT also agreed that whatever remained unsold after the sale, would be returned to Apple, which would then scrap the equipment and use it accordingly.
However, things didn’t well as per planned and forced it to re-plan the entire procedure once again. When it couldn’t manage to drive sales as per expectations, it put the equipment on auction. Apple filed a $439 million claim against GT for failing to conduct the sale in the desired manner. The deadline to respond to this claim is December 31, 2015, before which GT Advanced will need to come up with a solid response or be ready to pay the debt. Further details will be announced soon.