MicroVision Inc [NASDAQ: MVIS] has been trading in a bullish channel for weeks, and has spiked in pre-market trading. This follows investor speculation that the company was partnering with STMicroelectronics NV for the launch of LaSAR Augmented-Reality Eyewear. This is a big deal as it would have an effect on the company’s revenues going into the future. It also comes against a backdrop of other positive news that are likely to have a massive impact on this company’s intrinsic value in the long run, and are adding to the upside pressure in this stock at the moment.
Two months ago, the company reported its Q2 results and they pointed to resilience and potential for growth. For context, the company reported an improvement in its loss position. It reported that in Q2, its earnings per share stood at $0.02 or a net loss of $2.3 million. This is an improvement from a similar quarter in 2019, when the net loss stood at $0.08, or $9 million per share. Its cash position also improved in the quarter from $5.8 million in Q2 of 2019 and $7.8 million in 2020. Commenting on the results, the CEO Sumit Sharma stated that the company would continue to find new ways to unlock value for shareholders. Some of the avenue he stated the company was exploring include potential mergers or sales, strategic investments, and the sale of product verticals.
The company is already making moves to actualize its vision. A few weeks ago, it announced that Glass Lewis and Institutional Shareholder Services Inc. had approved proposals to increase in the number of shares. Commenting on these developments, the CEO stated that the company was pleased that ISS and Glass Lewis and the company’s board had agreed to push up the number of authorized shares, and that it was in the best interest of the company. He added that the company would continue to look into new ways to drive up value, and that shareholder approval of the same was a plus to the business.
Such factors are likely to keep adding to the upside momentum in this stock especially now that there are hopes of a stimulus package. President Trump and the democrats seem to be coming closer that would bailout the economy after a sustained period of weakness due to the pandemic. This could trigger a bull run that could see fundamentally strong stocks rally in the short-term.
About MicroVision Inc
MicroVision Inc is a Picop scanning Technology Company. It is based in Redmond, Washington.