There’s a lot of speculation in the markets about whether a buyout is coming in MVIS stock. We said back in June when shares were just $1 that buying MVIS stock was like buying a lottery ticket. The upside could be enormous if a deal happens. However, the bears have been trying to spoil the bull run by shorting 13% of the float and engaging in a short and distort campaign to drive MVIS stock lower. In this article, we take a look at the bull case for MVIS stock and why we think a buyout is still coming.
As you can see from the chart above, our readers and subscribers got in before the run above $3, which you can read here. However, after yesterday’s comeback, we believe the low is in and MVIS stock is heading back to the $3 level before any buyout news is announced.
First up, here’s a little background info for those that are not familiar with Microvision stock. MicroVision is the creator of PicoP® scanning technology, ultra-miniature sensing, and projection solution based on the laser beam scanning methodology pioneered by the Company. MicroVision’s platform approach for this sensing and display solution means that its technology can be adapted to a wide array of applications and form factors.
MicroVision has a substantial portfolio of patents relating to laser beam scanning projection and sensing. MicroVision’s industry-leading technology is a result of its extensive research and development. The Company is based in Redmond, Washington, which is also the headquarters of Microsoft Corporation (NASDAQ:MSFT).
The recent crash in MVIS stock came after Wolfpack Research shorted the stock and said that Microvision buyout rumors “have absolutely no basis in reality.” Wolfpack further added that “we see near term downside of at least 90% as insolvency looms and investors wait on a deal that isn’t coming.”
1/ We are short $MVIS because we believe the buyout rumors that have fueled its ~1,000% run over the last 3 months have absolutely no basis in reality.
We see near term downside of at least 90% as insolvency looms and investors wait on a deal that isn’t coming.
— Wolfpack Research 🇺🇦 (@WolfpackReports) July 21, 2020
Why Wolfpack Is Wrong On MVIS Stock
Taking a deep dive, here is why Wolfpack is wrong about MVIS stock.
- Google, Facebook, Amazon, Apple, Microsoft, and many, many other companies need to strengthen their Lidar/AR/VR capabilities. Here MVIS stock is a market leader.
- Microvision has over 450 issued patents, pending patents and licensed patents worldwide.
- This patent portfolio is very, very valuable. No doubt one or more of the companies above are already infringing on Microvision’s patents already.
- On the earnings call, the company said “I would like to clarify that we are engaged in discussions with certain potentially interested parties who are at various stages of diligence. We do not plan to make public statements about any bids or potential transactions unless and until an appropriate agreement is reached. I can share that a focused group of Top Tier OEMs and technology companies are engaged in exploring and potentially pursuing strategic alternatives, which could include a sale or merger of the Company, acquisition of one or more product verticals, strategic investment, and acquisition or licensing of our intellectual property.”
- Craig-Hallum was hired back in April to explore all options including the sale of one or more of the company’s module product verticals and related technology or a potential sale of the Company.
- Dr. Mark B. Spitzer just joined the board of directors. He was part Google X as Director of Operations for Glass and later moved to the VR team at Google where he helped build expertise in VR hardware design.
- We suggest watching the following videos on Microvision’s impressive technology.
The trends are too favorable for MVIS stock. All indications point to a buyout coming sooner rather than later. With Facebook, Google, Amazon, Microsoft, among others making a big push into the AR/VR space, MVIS stock is a natural fit. With over 450 patents and counting, the IP alone is worth a fortune, especially when you consider the dip pockets of big tech. Microsoft has $136 billion in cash, Facebook $58 billion, and Google $121 billion in cash. A buyout would save either one senseless litigation infringing on any of Microvision’s patents. This is why the bull case remains strong for MVIS stock.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in NASDAQ:MVIS or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.
Image by Gerd Altmann from Pixabay