Even though we know the hidden dangers, we tend to just lie and wait to see what happens. Very few people expected that GT Advanced Technologies Inc (NASDAQ:GTAT) will go bankrupt after the company had a pretty nice year, with a performance of about 16% year to date prior to the massive decline of about 93% in just one day. Although, it was known that Apple Inc. (NASDAQ:AAPL) didn’t value the cooperation with GT Advanced Technologies Inc (NASDAQ:GTAT) that much, people expected a more malevolent continuation of events, according to FOX.
“Last week the company had a schedule announcement to make on their financials and they said “we’ll push it on to October 6”. The stock made a reversal to the upside, a double digit move to the upside, a huge volume, everyone thinking it may be the takeover news,” informed Charles Payne.
Apple Inc. (NASDAQ:AAPL)’s new iPhones were supposed to have the sapphire glass produced by the dying manufacturer, but in September it was announced that the devices to be assembled with sapphire will be Apple Watches at most. That news brought GT Advanced Technologies Inc (NASDAQ:GTAT) down some 30%, but there was still hope that mighty Apple Inc. (NASDAQ:AAPL) will pay enough for the glass manufacturer to survive. Unfortunately, it was not the case, as Apple Inc. (NASDAQ:AAPL) added pressure to the situation by asking a repayment of previous investments.
“Last November Apple loaned them $570 million, basically setting up their facility in Arizona to build the glass for the potentially new iPhone. Then, of course, when that deal didn’t go through, the repayment then had to come in and they didn’t have the cash to repay it,” said Penn Financial Group founder, Matt McCall.
Now, as GT Advanced Technologies Inc (NASDAQ:GTAT) goes for bankruptcy, to the delight of some traders that have taken a huge short position in the company, it’s not even clear why Apple Inc. (NASDAQ:AAPL) decided to break up the relationship.
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