Microvision (MVIS) Stock Could Soar Ahead

Microvision, Inc. (NASDAQ: MVIS) is screaming for the top in the market this morning, trading on gains of more than 8% just before the opening bell. At first glance, it seems as if there’s no real reason for the run. There hasn’t been any press releases issued by the company, but the fact is, there has been news. 

In fact, there are two big factors driving the movement in the stock at the moment, and they’re connected to one another. 

First and foremost, investors are excited about the company’s upcoming presentation at CES, a presentation that’s expected to take place tomorrow. At the same time, yesterday, the company published a new investor presentation, likely the presentation that will be provided at CES, giving investors a sneak peak at what to expect. 

Here’s what’s going on:

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Here’s Why MVIS Is Climbing

As mentioned above, the gains in Microvision are largely the result of the fact that the company will be presenting at CES very soon, and that a new presentation deck was uploaded to its website yesterday. You can find that deck here.

One of the big wins here is going to be the company’s discussion of highway pilot capabilities, which can happen at speeds of 130 KPH, working out to just over 80 MPH, as fast as could be needed, even for highway driving. 

At the same time, MVIS has worked diligently to lower training and implementation costs for vehicle manufacturers. That’s an important key as the race for autonomous vehicles continues, manufacturers will want to get their hands on technology that’s seamless and relatively easy to implement into their ongoing efforts. 

Moreover, the company is taking a low-cost path to profitability. It’s assets are largely software centric, alleviating costs associated with expensive hardware and making profit margins something that has the potential to drop jaws. 

OEMs Will Jump All Over This!

What I find to be most interesting here is that unlike most in the autonomous vehicle race, MVIS isn’t just working to build the technology that allows for driverless vehicles to hit the road, the company has a core focus on making things inexpensive, and easy, for OEMs. Think about it:

  • Training. The company has created a system that requires no training for some areas and minimal training for others, creating an opportunity for OEMs to dive in and hit the ground running when they do. 
  • Speed & Restrictions. With a capability of working at 130 KPH and offering fewer restrictions than other options currently available, the MVIS technology is an easy choice above the competition. 
  • Lower Cost. On the system developed by Microvision, there are few sensors, and those sensors are of lower cost than what we see with the average autonomous driving system. As a result, cost is greatly reduced to OEMs that want to jump on board. 
  • Seamless Integration. Finally, the system was designed to be agnostic, easily integrating with the technology produced by vehicle manufacturers around the world. 

No matter how you look at it, this product is a high quality one that’s aimed at grabbing the attention of major manufacturers while providing top-quality experiences for end users. That’s a major statement my friends! 

The System Is Impressive

Beyond the fact that the company’s lidar/radar enabled autonomous driving system was designed for seamless integration with OEM operations, it’s also a pretty impressive option for the end user. 

The simple fact is that autonomous driving technology is in its infancy. As a result, it has several limitations. With most systems, autonomous features can only be used on a clear day with great lighting, meaning that autonomous driving during a light rain or morning fog simply won’t work. At the same time, speeds are often limited to neighborhood speeds, these technologies often have problems in tunnels and at intersections, and traffic must be existent so the driverless vehicles can follow other cars on the road. MVIS doesn’t have any of these problems. 

This is largely the result of the company’s proprietary software and custom ASIC, which offers lightning-speed processing and the ability to identify objects fast. 

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The Bottom Line

The bottom line here is that investors have plenty of reasons to be excited. MVIS is at a breaking point, one where signing on just a few OEMs could send it on a screaming path upward in the market. 

The company has a clear plan of action moving forward and an incredible product to center that plan of action around. At the same time, declines over the past several months have created a significant undervaluation in my view, setting the stage for what could be a tremendous run ahead! 

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