Vu1 Corporation (fka VUOC)

[ginchinchili]

New press release: http://finance.yahoo.com/news/Vu1-Corporation-Signs-prnews-1501631249.html?x=0&.v=1

Vu1 has contracted a Chinese company, Huayi, to build their bulbs. They have the capacity to build up to 250 million ESL bulbs. "Vu1 Expects to Significantly Decrease Operating Expenses & Improve Margins; Lower Cost/Bulb"

This is a significant development. Huayi has exclusive rights for the next 2 years, after which they will steal the technology and dare Vu1 to sue them. Just kidding, though that's always my fear when doing business with the Chinese. It wouldn't be the first time it's happened.

Putting aside my fear, it's a good business development. I've always felt that Vu1's biggest challenge has been getting up to production speed quickly enough for a product launch to have any significance. It should also give them some room to drop their price, which they've always said would happen.

I would also venture to speculate that they wouldn't contract another company to build millions of bulbs if they didn't have someplace lined up to sell them.