EXCLUSIVE: POET Stock Rallies To Near 11-Year High – Wolfpack Says Market Will ‘Render Its Verdict‘ By 2027

• POET Technologies shares surged more than 20% on Wednesday, reaching their highest level since July 2015.
• However, Wolfpack Research told Stocktwits that the market would “render its verdict” in a year and that “shareholders deserve better.”
• The short seller said investors should direct concerns about the PFIC issue toward POET’s management, not the firm.

Shares of POET Technologies (POET) rallied to an 11-year high on Wednesday as it continued to rally following Wolfpack Research’s report last week, but the short seller believes the market will “render its verdict” a year from now. 

“A year from now, the market will render its verdict. Management is financially insulated regardless of the outcome,” Wolfpack told Stocktwits over email. “The same dismissiveness they direct at critics today will likely be directed at disappointed long investors tomorrow. We believe shareholders deserve better.”

POET’s stock gained over 20% in afternoon trade on Wednesday, paring gains after hitting a near 11-year high of nearly $12.95 and is on track to close the day with a weekly gain of over 60%. The last time POET’s shares were trading at this level was in July 2015. It was among the top trending tickers on Stocktwits at the time of writing. Retail sentiment on the platform around POET trended in ‘extremely bullish’ territory over the past day, accompanied by chatter at ‘extremely high’ levels. 

POET Stock Rallies Amid Ongoing Short Seller Debate

The rebuttal from Wolfpack comes after POET Technologies chief financial officer Thomas Mika told Stocktwits that all short sellers were “maggots” and that Wolfpack’s allegations were just a “nothing burger.” 

One of those allegations was that POET’s accumulation of cash through share dilution could make it a Passive Foreign Investment Company (PFIC), triggering complex IRS compliance requirements and punitive tax rates for U.S. shareholders. 

“Investors should direct their frustration at management, not at us,” Wolfpack said, noting that POET filed its annual 20-F on March 31, where it stated it did not believe it qualified as a PFIC.

The short seller said it identified the issue only after reviewing that filing and moved quickly to validate its conclusions. “Had we waited until after April 15, investors could have faced the burden of filing amended returns,” Wolfpack said, calling its timing “responsible.”

WolfPack also questioned POET’s subsequent actions, including efforts to address the PFIC issue and plans to redomicile. “These are not the actions of a company that believes the issue is inconsequential,” it said.

The short seller reiterated that the company has a pattern of missed milestones over multiple years, and that investor enthusiasm may be running ahead of operational progress.

POET's stock has gained nearly 90% this year and more than quadrupled in value over the past 12 months. 

Read also: EXCLUSIVE: POET CFO Confirms Orders From Marvell – Waiting To ‘Hear Back’ From Foxconn, Luxshare

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