Reading a chart is sometimes like telling fortunes by reading tea leaves.  You may have a rare insight into a person or a situation by reading the leaves….or, you could just be full of crap!

I don’t think I am full of “it” when I recommend my members take a look at Microvision, Inc. (MVIS).  As recently as two months ago, the company’s stock hit a 52-week high of $5.75.  The stock couldn’t maintain its momentum and began to give most of the gain back and then recently announced a discounted equity offering that “finished ‘em off”.  It is a good thing to raise capital, but MVIS set the price for the stock with an offering priced at $3.00 (all to one institutional investor, by the way) and that predictably drove the price to that level.  It has recovered slightly, but still hovers around $3.19 as of Friday.

MVIS, especially with the latest capital raise, will have a strong balance sheet.  Even before this raise, the balance sheet was in good shape:  Good ratios, little or no debt, cash-in-the-bank, etc…  However, they are going to need every dollar with the burn rate that they are experiencing.  Great technology, but markets are only just beginning to be tapped and they are still in a big R & D push.

MVIS, the company, offers a technology platform that enables next generation display and imaging products.  Their main markets are displays in vehicles, projectors, wearable displays and bar code scanners.  I recommend that traders check out the MVIS Website. They have some cool technology that they think will be the standard in the years to come.

I also like the chart. The stock has taken its beating with the bad news (to traders) about the capital raise and the technical indicators are looking more favorable.

MVIS is a good radar stock, IMO.  The stock should be avoided for any break below the $3.05 range, but I don’t believe that it will break down.  The fact that an institutional investor is willing to pony up $9.3 MM for stock in a company that doesn’t make a profit, but has nice technology (and 115 patents at last count), is pretty impressive.

Long term this might be a good stock to own, but since I live in the short-term world….look for a ‘pop” in the near term.

Do your due diligence, but I like what I see with MVIS

Good luck and good trading

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