MicroVision, Inc. (NASDAQ:MVIS), a leader in MEMS-based solid-state automotive lidar and ADAS solutions is a company that has a ridiculously lucrative revenue potential in multiple markets, which in my opinion is why this is a safer small-cap tech than most, who generally corner themselves into 1 specific niche for a ‘make or break’ opportunity. Disclaimer before I get into it, I do hold shares of this company and I am not offering financial advice for anyone to engage in transactions involving this security – just throwing my opinion in a Reddit post for people to internalize for themselves.
For the most part I’m going to keep this relatively casual and will be speaking from my own words with sources sited when necessary. There is also a TON to the story of this company as it’s been around since 2000 or so, so I will keep this brief as possible.
The background:
Microvision has been very engaged in the VR/AR space before many of the companies we hear about today have been. They’ve been one of the first to get ahead and patent very critical components in the space and over time have create a MASSIVE portfolio of AR Proprietary Technology (for one, making them a huge buyout candidate, which imo as an investor is the worst case scenario as I trust the current leadership to deliver on their own).
It was during 2015-2016 when Microsoft had come out with the HoLoLens headset which was one of the first to-be commercialized AR headsets we’ve seen, and through tons of crum collecting and dot connecting, a retail investor actually bought a HoLoLens device for about $5000-$7000 and tore it apart completely, only to publicly reveal that Microvision, the small company out of Redmond Washington was on, and developed the core technology solution within the world’s first fully untethered holographic computer. Today, At this moment in time the US ARMY has just ordered HoloLens 2 Devices for field testing and military application with the idea of potential widespread use (using the Same Microvision Technology being used at HL1). This is opportunity #1 and the reason MVIS has gotten to where they are today, which is…….
Opportunity #2. Sumit Sharma came in as CEO in 2017, the day that announcement came out after the bell, MVIS dropped to $0.23/share. Sumit has since delivered on multiple promises, and have shown to be very persistent in remaining on investor expected timelines for projects. In short, Sharma understands the power and sheer cutting edge ability of the military grade tech stack that MVIS has built over the 2 decades, and in the last 3 years of his current tenure has developed and clear and concise market strategy to fully optimize the revenue potential of said technology. What is it? Consumer Automotive Advance Driver Systems. A space that (in previous and most recent Earnings Calls) Microvision expects to reach $30 billion in market value by 2023 on the LIDAR technology involved with the automobiles. Since then, MVIS has been developing LIDAR technology and at this moment in time as I type this, are track testing their sensors at 80/mph highway situations (current market speeds for known LIDAR sensors is in the 30-40 mph range).
After 2 decades of building AR/VR technology IP, Sharma became CEO in 2017 and realized how cutting edge the technology IP of Microvision really was, and created a plan to attack the most highly profitable space possible (consumer vehicles) by solving the most complex problems associated with it (ADAS). Additionally, in the words that he’s used “maximizing company potential and shareholder value”
Now I can get into the exact specs of MIVS LIDAR Sensor compared to other competitors, and I can get into Sumit Sharma’s background as a CEO and what qualifies him to be at the helm of such a potentially lucrative company, but for now wanted to keep it short and high level informative for those looking for a quick read of a nice investment opportunity.
Just minor example about the company that really draws my eye, the financial team opened a $125 million ATM share offering which they sold the majority of during a ridiculous short squeeze when the company ran to 28 per share. They understood the company was not at that value yet, but used the market opportunity to basically create multiple years of cash burn out of thin air, allowing them time to let their amazing technology find it’s revenue building home and driving shareholder value upwards in the long run
TDLR:
Opportunity #1, the US Military buys multi-million units of HL2 in which MVIS would be a direct receiver of royalties for.
Opportunity #2: Utilizing proven military grade technology, MVIS becomes a direct supplier of LIDAR sensors to be used in millions of consumer vehicles for self driving capabilities by 2030.
I truly in my own opinion see a very high chance in both opportunities playing out which could make for a completely generational winner of a company in Microvision.
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