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Akoustis was a manufacturer of 5G radio filters with early success in WiFi 6(E) designs. Unlike Resonant, I saw it potentially benefiting from the push toward domestic manufacturing. That seemed to be affirmed by support from Schumer starting in the Fall of 2022. However, post-pandemic supply chain issues hampered growth; I always warned that mass manufacturing is deceptively difficult and the company almost certainly had a longer runway to sustainable returns than many were expecting.
My first major warning came at the beginning of 2023 when the company diluted shareholders far more than necessary ahead of its application for domestic manufacturing stimulus funds. That was followed by concerns about government paralysis and litigation from Qorvo. From there, I was treating even good news from Akoustis with caution, calling it "a company that will need M&A to realize its full potential in the short term." Ultimately, government funding never came through before delays and legal costs forced more dilution as Qorvo sued Akoustis into the oblivion that winds up awaiting most GRoDT stocks.
I see this coverage as yet another example on how experienced, balanced and timely coverage can help investors who wish to dabble in such stocks from avoiding total losses.
Updates: | ||
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-7 | Jury finds Akoustis liable for $38.6M | 08:13 20-May-24 |
?7 | Akoustis conference call legal update | 21:50 13-May-24 |