Vuzix Corporation (VUZI)

[growacet]

Motivation to pump the share price again?

According to the Moxx allegations the motivation for hiring IRTH and pumping the PPS was to raise cash by dumping more shares into the market...and it looks like it was mission accomplished, at a PPS of $10...

Now the company is cashed up decently....something like $30 million or so in the bank if memory serves. If they keep losing $5 to $6 million every three months then they have enough do/re/mi to last another 12+ months before the well runs dry again.

Of course with negative margins that means the more they sell, the more money they lose. So if they start pumping out Blades and sell them for less than it costs to make them, then those losses can accelerate.

Then maybe they'll hire IRTH or some other similar type company to bring in more 'Greater Fools'?

The only incentive to pump up the PPS again I can see in the near term is to avoid falling below $5 and thus attaining penny stock status again. Vuzix doesn't have a lot of instututional ownership, not even 10%....but many institutions are not allowed to hold a stock trading under $5 in certain funds.