Head’s Up on a New RRS Stock,
Pico Projection, the Next Big Thing?
“The Next Thing” is always on my mind. It is the heart of the “Rocket Ride Stocks” endeavor to find
investable companies on the fast track upward. Using Google, we followed a trail. Big Things,
Automotive Electrification, Heads Up Display (HUD), Pico Projectors, Microvision, MVIS.
A quick check showed that MVIS was an investable company in an interesting market segment. So
then the questions arise. Is it a good company with good products? But much more importantly, is
MVIS a good investment?
First we will explore the company - “MicroVision is a pioneer in pico-projector technology with
research and development successes that have yielded a significant number of patents. MVIS is an
independently recognized leader in the development of intellectual property (IP). IEEE has ranked
MicroVision’s IP portfolio in the top 20 among all global electronics companies and the top U.S.
company in the rankings. MicroVision’s IP portfolio has also been recognized by the Patent Board, in
association with the Wall Street Journal, as a top 50 IP portfolio among all global industrial
companies. “ In other word, MVIS holds the intellectual property required to support and defend its
underlying technology.
Next we looked at MVIS technology – “MicroVision’s patented MEMS scanner is at the core of their
PicoP display technology and is coupled with red, blue and green laser light sources to produce an
always in focus high definition image with a broad color gamut unmatched by any other picoprojection technology. Of importance to consumer product OEMs is the small form factor and low
power consumption that will fit easily into mobile devices. MicroVision’s picoHud™ solution, based
on PicoP® display technology, can also be viewed in bright daylight giving automotive companies a
key advantage for vehicle displays.
And then we explored MVIS product development status. MVIS is in the midst of a major product
development cycle meaning that it is an emerging company. Initial design of its pico-projector
devices has been completed and it is in the product evaluation cycle with production orders by a
Fortune 100 company. MVIS is contributing to product acceptance and commercialization activities
as well as evaluating its ability for future large scale production. Its customer base includes auto
Original Equipment Manufacturers (OEMs), electronic product developers (cell phone sized pocket
projectors) , and logistic supply companies for picking and sorting applications. The OEMs are
Fortune 100 and 500 sized customers whose primary focus is mobile display applications and
Automobile HUDs.
Recognizing that the market potential for MVIS products is huge, we wanted to know whether or
not MVIS would be a good investment. The simple answer is “NO”. But nothing is ever simple.
MVIS is operating at considerable losses with a current EPS of -0.36 and $4M expenses against
current revenue of only $1M. In a recent conference call, the topic of stock dilution was not handled
very well. This is a high risk stock. In addition, MVIS is still addressing critical system parameters
including power efficiency and projection brightness. But in time, MVIS could be a very highly
rewarding stock. It is, after all, a Zacks #2 rated stock. We do not recommend a BUY for our personal
portfolio but we are adding MVIS to our watch list and will track its future progress accordingly. This
is a rocket ride in the making!
And what is our projected time frame for MVIS to be an attractive investment? We believe that
MVIS should be revisited within about six (6) months. It is believed that the stock has bottomed and
may slowly begin to ascend. Please note the growth projected for 2015.
To learn more about MVIS vision for its pico-projector technology, click here!
https://www.youtube.com/watch?v=XuOB8ZniLmg&feature=youtube_gdata