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MVIS rumors and LG development ?2
11:34 11-Jul-16
MVIS has bounced over 10% off recent lows over the past few days
on rumors that the company is cutting an OEM deal with LG. The
low price and rebate rate of 15% makes such moves pretty easy to
generate. It's possible this rumor is true; management did say in
the last report that new opportunities look like they will result
in "several commercial opportunities this year" from new
customers.
Still, I'd be a little surprised if LG actually turns out to
really be a partner. LG Display just took
delivery manufacturing equipment for its AMOLED build out.
With continued expansion
of its customer base for those TVs, it seems to have more than
enough sticks in the fire. LPL has also risen, probably more
because of the dynamics in LCD pricing that I've been talking
about than the new AMOLED production for next year.
Markets continue to be very short-sighted, which worries me, and
leads me to believe we'll see more sharp sell offs as the year
progresses. The next earnings reports from both companies are due
at the end of month. For MicroVision, I'll be much more
interested in continued progress on manufacturing efficiency than
I am in rumors on message boards, and fear of dilution balances
the prospect of new business.
LPL investors, however, could easily be showing some nice profit
right now on a dynamic with limited lifespan. They will have to
think carefully about how patient they will want to be, and how
such gains would be characterized, if taken.