Nasdaq: VUZI (Vuzix, Inc.)

Discussion in 'Stocks' started by kmiklas, Aug 15, 2016.

  1. kmiklas

    kmiklas

    Thinking of taking a swing at this one.

    PROS:
    1. Vision wearables are starting to become relevant
    2. Intel made an investment into Recon at this time last year:
    http://www.reconinstruments.com/2015/06/intel-acquires-recon-instruments/
    3. Google, of course, made a big investment into Glass
    4. Microsoft has a "hololens"
    https://www.microsoft.com/microsoft-hololens/en-us
    5. Apple patented "iGlasses" last year
    http://money.cnn.com/2015/01/06/technology/mobile/apple-patent-flexible-phone/
    6. With gorillas like Google, Microsoft, Intel, and Apple making investments, it seems like Vuzik is ripe.

    CONS:
    1. Uptick rule has been triggered. More than a few are prepping for a plunge
    2. Perhaps it's still too soon; its time has not yet come.


    Thoughts?

    http://www.nasdaq.com/earnings/report/vuzi
    http://finance.yahoo.com/quote/VUZI?ltr=1
     
    Last edited: Aug 15, 2016
  2. qxr1011

    qxr1011

    it sounds like a pitch of a broker to a dumbo client (in this case you playing the role of a broker and a client) :)

    why?

    because any professional discussion of trade or investment should be based on the trading or investment methods parameters, not like:

    ===With gorillas like Google, Microsoft, Intel, and Apple making investments, it seems like Vuzik is ripe===

    ===Perhaps it's still too soon; its time has not yet come.===

    also, since no traders or investors have the same methodology any discussion about any particular trade or investment imho utterly useless...
     
  3. kmiklas

    kmiklas

    Examining the essence of their flagship product against major players in the industry makes a lot of sense.

    False. Any investor doing fundamental analysis will look at the essence of the product offered, including the business model and competitors. There's a nice article about it on Investopedia; see sections on "Customers," "Industry Growth," and "Competition:"
    http://www.investopedia.com/university/fundamentalanalysis/fundanalysis3.asp
     
    Last edited: Aug 15, 2016
  4. qxr1011

    qxr1011

    ok good luck
     
  5. R1234

    R1234


    Funny you should say this. A broker cold called me several months ago touting VUZI
     
  6. qxr1011

    qxr1011

    well, that's what brokers do - they sell a story

    and theirs clients - are the people who like to buy the stories :)
     
  7. vanzandt

    vanzandt

    Thanks for the tip on this one.... its a short. I just picked up 7 of the Sep 16 $10 puts at $3.10.... just for fun.
     
  8. vanzandt

    vanzandt

    They have missed analyst's estimates by over 100% for three quarters in a row. I have looked at their patents... pfff, nothing really earth shattering there, minor minor things.... nothing the big players don't already have in one way or the other. Their increase YOY in revenue was due to "engineering services" and not sales. And on a side note, when I read that brokers are calling people to buy it, a micro-cap based in Hennrietta, NY with a suite as a corporate address... one has to go "hmmmm". We'll see.


    Second Quarter 2016 Operational Financial Commentary:

    Total revenues for the quarter ended June 30, 2016 rose by 31% over the same period in 2015, primarily driven by increased sales of engineering services, waveguide products and iWear Video Headphones.
    Total gross profit for the second quarter ending June 30, 2016 was a negative $126,054 or -22% versus a gross profit of $35,264 or 8% for the prior 2015 comparative period. The overall decrease was primarily the result of a $42,808 increase in direct manufacturing overheads, a temporary $107,349 increase in air freight costs solely due to the cost of transporting the new iWear product, which is bulkier and heavier than prior products, and to a smaller extent the lower gross margins on iWear. The Company is moving to sea transport later this summer to reduce iWear shipping costs. As stated on prior calls, because of our relatively fixed amounts for overheads, software amortization and minimum royalties costs, we must increase our sales for our overall gross margins to be positive.
    Total research and development costs expensed for the quarter ending June 30, 2016 increased by 128% or $936,552 over the 2015 period, primarily the result of spending on new product development for the M300 Smart Glasses. Further increased spending went to expanded waveguide research and development and personnel additions.
    Selling and marketing costs for the quarter ending June 30, 2016 increased by 89% or $306,285 over the same period in 2015 due to higher personnel, trade show, website and PR costs.
    General and administrative expenses for the quarter ending June 30, 2016 increased by 15% or $150,340 over the 2015 period, primarily due to higher professional fees, compensation costs, rent costs, and increased investor relations activities.

    Second Quarter 2016 and Recent Corporate Highlights:

    Introduced the VIP (Vuzix Industrial Partner) program to provide advance access to the next generation M300 to select VIP companies that were the most successful with the M100, and announced several of the first VIPs.
    Commenced delivery of the first engineering samples of the next generation M300 Smart Glasses to VIP developers and customers.
    Partnered with CyberTimez to improve the lives of people in the low vision and blind community through Vuzix Smart Glasses and CyberTimez applications.
    Partnered with Sensory, a Silicon Valley-based company focused on improving the user experience and security of consumer electronics through state-of-the-art embedded voice and vision technologies, to deliver voice recognition on Vuzix M300 Smart Glasses to enhance efficiencies in the workplace.
    Announced a partnership with the IDRA (International Drone Racing Association) and sponsorship, with Amimon, of a drone racing team in this rapidly growing competitive sport.
    Signed collaboration agreement with a global consumer electronics and mobile firm to develop and ultimately supply Vuzix see-through optics technologies
    Closed on the sale of 1,150,000 shares of common stock at an offering price of $5.75 per share, including the full exercise of the over-allotment option granted to the underwriter to purchase an additional 150,000 shares, through Oppenheimer & Co. Inc. for total net proceeds of approximately $5,996,000 after underwriting discounts and commissions and estimated offering expenses.

    2016 Outlook

    The Company's new M300 Smart Glasses, after receiving positive feedback based on the first engineering production units shipped to VIP developers, is now moving to the final round of design verification preproduction units. By early October, we should commence volume manufacturing and commercial shipments to our customers. Additionally, we should complete the iWear's transition from final manufacturing being performed in Rochester NY to receiving the revised iWear Video Headphones with improved optics and other refinements directly from our contractor manufacturer in China this September, expected in time for the busy fall selling season.

    Vuzix' M3000 Smart Glasses based on our waveguides has been released into the final production engineering and tooling phase. And the Company's first waveguide based B3000 fashion glasses product series are well into the design phase with initial release of the electronics and industrial designs, and are on track to be released in 2017.

    "With the $5,996,000 we raised in our recent equity offering, we are well positioned to support the launch of our soon to be released M300 Smart Glasses, expand our waveguide volume production capabilities and refine the planned 2017 launches of our M3000 and B3000 binocular waveguide products," said Paul Travers
    , President and Chief Executive Officer of Vuzix. "With our VIP partners integrating their state of the art software into the M300, we believe are on the path to take smart glasses to the next level of productive deployment in enterprise."
     
  9. kmiklas

    kmiklas

    In my opinion...

    I think that they're going to get bought out.

    They're in direct competition with Google Glass (see my profile pic :) ). They'd be a perfect fit for one of the Gorillas that wants a quick in to the visual/wearable market.

    Watch your timing on that put.
     
    Last edited: Aug 18, 2016
  10. vanzandt

    vanzandt

    You'd see more option activity I think...

    Price to sales...51.75
    price to book... 15
    5 yr annualized sales growth -25%
    -$0.92 cashflow per share

    With numbers like that, to get bought out, they would have to have some really really revolutionary technology. They have some cool products, but the metrics of the company are not the most appealing for a buyout.

    Good luck either either way though... watch the volume, on a stock like this, volume is a good tell one way or the other... right now, its dying and the price is falling, and that bodes well for the short side of the argument. Better places to park your money though... holding out for a buyout can stagnate funds that could be working elsewhere if you're actively trading. Buy the front month $10 calls for a dime each month if you want to play home run derby, cheaper in the long run. jmo though. G/L Mik
     
    #10     Aug 18, 2016