CES is just around the corner and I believe it will cast a bright spotlight on Kopin (NASDAQ:KOPN) due to the following:
- During the Q2 earnings conference call Dr. Fan Kopin's CEO was asked about specific product launch timing and CES was mentioned as a window during which we could see partner and customer announcements.
- Smartglasses are expected to figure prominently at CES and I expect Kopin to be a key OEM supplier to multiple consumer electronics and fashion brands; we should know who some, or all, of these partners are following CES.
- Intel has been pushing into wearables heavily of late:
- Their Recon Instruments investment last year (Kopin was actually a first round investor in Recon and is their display supplier)
- The recently announced deal with Luxottica to develop and release Smartglasses in 2015
- Prediction: Intel has SOC, CPU and general IC expertise, but I believe they will need Kopin's IP and displays to offer a complete platform
- We have not yet seen what Verizon has planned for their Golden-i implementation; I think there is a huge market for this platform as a hands free replacement for laptops field workers currently use. Verizon and Motorola may not be the only licensees of the Golden-i reference design and OS.
- During the Q3 earnings call Dr Fan highlighted the fact that they had begun pre-production work to increase manufacturing capability by 2014 year end in order to fulfill wearables customer requirements.
- The Vuzix (NASDAQ:VUZI) M100 continues to gain momentum and it has Kopin's White Pearl optical engine inside; I also believe that their new V720 video headphone product has Kopin components and IP inside, will launch at CES, and could sell very well.
I see 2015 as a pivotal year for head worn wearables and Smartglasses. CES has the potential to be a catalyst for Kopin's share price if partners and customers reveal products that resonate with consumers and enterprise.
Therefore, I am entering fiscal 2015 Long Kopin (KOPN) based on the expectation that they will end up being designed-in to products which could end up shipping millions of units globally. The impact of major CE and fashion brands shipping Kopin-enabled products would have a parabolic impact on the current share price. A share price which, in my opinion, is currently trading below its intrinsic value (cash + IP).
Disclosure: The author is long KOPN.