Lightwave Logic, Inc. (NASDAQ:LWLG)

Original blog note from 1/3/2012

Development stage company with no revenues. Has gone from .60 with current price of 1.74 on increasing volume. Claim to possess technology that helps transmit digital information over the internet at faster speeds then is currently available.  Company claims it is at various stages of potential customers pertaining to the receipt of orders. Company has a stock purchasing agreement with Lincoln Park Capital.  Whereby Lincoln has committed to purchase up to $20 million dollars over 30 months. This agreement began in May of 2011.  The LPC agreement is subject to conditions that we must review.  We are surmising that the recent rise in shares has something to do with the LPC agreement. All and all, we do not believe the rise in shares is sustainable-justified.  Our next step is to determine if this stock is getting pumped. Could be an ideal short candidate if it continues pumping, but hard to tell right now.

Fellow Shareholders,

As we begin 2012, I want to update you on the progress we have made toward reaching the goals I outlined in my July 12, 2011 letter, and then subsequently discussed during our August 11, 2011 annual shareholder meeting.

There have been many exciting corporate and scientific developments going on at the Company, which I believe will ensure our long-term success. First, our recent announcement that we achieved a major breakthrough in the field of organic nonlinear optical materials is a significant accomplishment. We are very proud of our Delaware scientific team for creating this new material, which we named Perkinamine Indigo™. With electro-optical properties (r33) in excess of 250 picometers per volt and thermal stability in excess of 300 degrees C, this material vaults us into the forefront of organic electro-optical technology. From a business perspective it will give us the ability to fabricate modulator devices that will be able to exceed the performance of existing legacy infrastructure by an order of magnitude in both the telecommunications and data communications markets. Furthermore, we believe the properties of Perkinamine Indigo™ exceed the technical specification requirements set by the major microelectronics company we have been working with for the past two years, and we are now hoping to enter into an agreement with them sometime during 2012.

As you know, initial revenue has not come as quickly as we previously expected, however, the good news is the opportunities are on-course and progressing rapidly. We have recently delivered newly completed design proposals to Lockheed Martin and Celestech and expect that they will be accepted. Further, we have recently received new inquiries from other large potential customers looking to solve their technical problems with our organic nonlinear polymer materials. I look forward to being able to deliver some good news about initial revenues soon.

Full letter