Hey Rookie, Short Squeeeeze coming soon to $VUZI....GL and Happy trading.
We have evaluated the catalysts currently in play for Vuzix and conclude the company shares may be headed toward their 2018 high of $9.00 per share or more.
BREAKING NEWS:
Yesterday, the company announced it has delivered a customized commercial and defense avionics waveguide-based head mounted display (HMD) system to a global Tier-1 Aerospace firm as part of the work effort associated with the fourth phase of product development for this customer.
The customer and Vuzix are now negotiating a supply agreement for volume production of this customized HMD waveguide and HD display engine product, with deliveries commencing as early as fall 2020. Contemplated quantities should represent a significant revenue opportunity for Vuzix.
We do not know who the customer is, but if you Google Tier 1 Aerospace companies, you will see a list of companies that can afford a lot of HMDs. To date, Vuzix has now received approximately $1,300,000 in non-recurring engineering services revenues on this program.
The development of this Tier 1 Aerospace supplier deal has been in the works for a while. The fact that the parties are discussing production schedules may indicate that product development is completed and its finally time to fatten the VUZI top line.
The announced future sales to a large aerospace contractor will tend to give credence to VUZI and their products, creating the potential for revenues to snowball for the company.
VUZI Tech:
Waveguides are thin (about 1 mm thick for each individual plate), transparent, optical elements that take a projected virtual image and relay it to the eye while expanding the exit pupil (viewing window) at the same time.
Smart glasses offer the user the chance to immerse themselves in a digital world. By layering reality, one can navigate the world freely but with an extra element of engagement. The technology is growing rapidly, with many apps making the leap from phone to lens. Using maps and annotations via glasses is a more intuitive way to use apps.
Vuzix is emerging as a critical go-to supplier of smart glasses during a period when the world is turning to them as a needed solution. This fact is evidenced through their growth in orders, new partnerships, use cases, and the overall breadth of customer interest.
What we conclude as expectations from Vuzix during the balance of 2020:
The commencement of volume production of Vuzix’ new M4000 smart glasses this summer, which utilize the Company’s next generation see-through waveguides.
Ongoing improvements in waveguide manufacturing, resulting in higher yields and expanded production capacities.
The further expansion in contracts for engineering services program engagements, with others in the pipeline as well as OEM component and product programs.
Highlights regarding plans for the development of Vuzix’ next-generation waveguide optics for use with MicroLEDs that allow the creation of very small high performing display technologies.
Vuzix’ intellectual property portfolio, now consisting of 157 patents and patents pending, as part of the Company’s further expansion of its leadership position and in-depth knowledge of near-eye display technologies.
There is a Potential Short Squeeze Here
According to shortsqueeze.com, Vuzix has 4,140,000 shares (10.5% of the outstanding, 13% of the float) sold short. The holders of these short sales will do anything they can to drop the share price, but if the shares hit $4.50, $4.75, $5.00 and more they may be forced to cover those shares at any price they can to cut their losses, resulting in an even higher spike in price. VUZI does look like a textbook opportunity for a short squeeze.
VUZI shares have a lot of positives backing up their potential for gains:
Top of the class in smart glasses technology and available apps. Think of Apple and the development of the smart phone.
Emerging telemedicine opportunities. There is more development happening beyond the knee replacement we discussed before.
Vuzix works with large companies in various industries to develop this new mode of data consumption.
VUZI is at the cusp of taking a possible leap from $7M in annual revenues to untold millions in revenues.
There is a strong potential for a short squeeze.
VUZI shares have already exhibited that they can trade at $9.00 per share, a level they reached in 2018. The company and its technology have come a long way since then and we believe investors will continue to place investment dollars in VUZI as they continue to prove they can execute.
The Team
original report
Vuzix (VUZI) Breaks Through Moving Averages in a Bullish Manner
“Producing Products Conducive to Our New Normal”
Vuzix has grown from 90 patents and patents pending to 166, over the last 36 months
Good day everyone,
We are continuing coverage of Vuzix Corporation (NASDAQ: VUZI), a supplier of Smart-Glasses and Augmented Reality (AR) technologies and products for the consumer and enterprise (more product info below).
Current price $3.90 per share
Outstanding (est.) 39.3 million shares
Float (est.) 30.5 million shares
Insider Holdings 12.99%
Institution Holdings 15.99%
Potential near to mid-term catalysts for VUZI shares:
VUZI shares have crossed their 50 DMA and 200 DMA of $2.60 and $1.95 respectively in a bullish manner.
VUZI has just announced a collaboration with Verizon to service EMTs with a connection to hospitals and doctors via 5G enabled smart glasses.
The company has begun to deliver product on a previously negotiated contract with a major defense contractor.
The potential catalysts listed above are all recent developments in the month of July.
Since bottoming out in mid-March under $1.00, VUZI shares have been on a steady climb to their current pricing over $3.50 per share. The company shares could be headed back to their 2018 levels in the range of $9.00 per share.
VUZI has always been a little bit ahead of the times with their technology, but the times are changing, and the VUZI product line is transcending into the mainstream.
Most of us love our data, screen time, virtual reality, online games, and searches but we currently need to be around a computer, tablet, smartphone, or some manner of screen device. Smart glasses have the potential to eliminate that tether and take us to a new level.
According to Paul Travers, President and Chief Executive Officer of Vuzix, "Worldwide travel restrictions and quarantine requirements related to COVID-19 continue to help expedite purchasing decisions related to smart glasses. Our M400, represents an effective solution to provide business continuity during the new normal.
The company's M400 has become a benchmark for leading-edge performance in the smart glasses industry. The M400, combined with remote support applications like Vuzix Remote Assist, Zoom, WebEx Teams, Ubimax Frontline and many others, sets the Vuzix product line ahead of the competition. The M400 is now available in 52 countries around the world.
The VUZI patent portfolio has grown from 90 patents and patents pending to 166 over the last 36 months, including a range of IP including waveguides with holographic optics, laser, and micro LED display integration.
Pixee Medical, a France-based medical company, performed the world's first Knee+ total knee replacement surgery on June 24th using the Vuzix M400 AR Smart Glasses. The Pixee Medical company was founded in 2017 with the goal of creating high-performance, computer-assisted surgical solutions using proprietary computer vision and artificial intelligence technologies. Pixee intends to continue and promote the use of the M400 technology for knee surgeries.
The Company has won Consumer Electronics Show (or CES) awards for innovation for the years 2005 to 2020 and several wireless technology innovation awards, among others. Vuzix keeps winning these awards because they always present the most innovative technology in their field.
VUZI has a significant insider ownership and an even larger institutional ownership. In 2020 there have been seven insider “buys” totaling 22,750 shares. There have been no insider sales recorded in the past six years. Nine institutions have purchased VUZI shares in 2020 and one institution has sold shares.
5/13/2020 Maxim Group Reiterated Rating Buy
VUZI products include monocular smart glasses for enterprise, industrial, commercial, and medical markets; and blade smart sunglasses for applications ranging from basic text messaging and answering the phone to overlaying mapping directions, menus, weather, events, stock quotes, video conferencing, sports updates, social feeds, bio-metrics, and others. The company is also developing a binocular AR smart glasses product that provides the user a live, direct, or indirect view of a real-world environment. Its AR wearable display devices are worn like eyeglasses or attach to a head worn mount to view, record, and interact with video and digital content, such as computer data, the Internet, social media, and entertainment applications.
We anticipate the company revenues could begin to accelerate as they develop more contracts and increase production. VUZI shares may be at the onset of significant gains as they are the leader in the smart glasses sector, and they produce products that are conducive to our “new normal”.
Full report coming soon,
The Team
AI
