OPEL International Inc. (CVE:OPL) added more than 106% to its share price after the company received third party valuation of their intellectual property.
The POET technology portfolio received a rough valuation of $1 billion. The number was derived from a range of values, with the median value at $996.6 million and mean value at $1.31 billion. Pellegrino & Associates, LLC was hired to evaluate OPEL’s Planar Opto Electronic semiconductor fabrication technology.
The technology allows digital, analog and optical circuit chips to be made using gallium arsenide, which allows for reduction in size and power consumption as well as increased speed, compared to silicon CMOS (complementary metal oxide semiconductor).
The high valuation of their technology is unquestionably a good thing, but since the value is intangible, it cannot really be reflected on the market, unless there is a buyer willing to pay up.
Share price closed at a new 52-week high in reaction to the news. Intraday trading showed a lot of profit taking though, prohibiting the stock from a sustained value growth for half the day. OPL failed to follow up with the rally, rolling down 11% shortly into trading session today.
70 cents was the magic resistance zone that absorbed most of the buying pressure on Wednesday. If a situation of collapse and rally, similar to the one recorded yesterday, repeats, this resistance is the one too look at, as it could lay ground for further gains if breached.
