(Editors' Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.)
Microvision (NASDAQ:MVIS) has always been a short. Pull up a 5 year chart and you will see just how much shareholder value has been destroyed. In the past 10 years the Company has raised over $80 million by diluting shareholders. Unfortunately, those shareholders have NEVER seen a single penny of profit from operations. The Company's cumulative Retained Earnings are losses approaching $450 million. Yesterday's announcement from Sony introduces no new advancements and includes no promise of future product development.
The Sony (NYSE:SNE) pico-projector module is based on Microvision's design, but it doesn't solve the same problem Microvision has always faced. There is a physical limitation to how bright a laser based display can appear without necessitating FDA approval, and unless the displayed image is going to be bright and vibrant in natural light settings it simply won't find demand no matter how small the projector is.
At the end of September, MVIS had roughly $8 million in Cash and the Quarterly Cash burn is in excess of $3 million. With no new revenues anywhere in sight, it is a matter of when not if Microvision will dilute its shareholders yet again with yet another cram down raise.
Disclosure: I am short MVIS. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.