Tuesday, July 26, 2016

BENZINGA! -- Interested in Virtual Reality? Here are the purest plays

Nice article in BENZINGA about investing in Virtual Reality. (Of course, that's not all Microvision has going on, but this is the right kind of attention.)

Benzinga   More at the source

Virtual reality and augmented reality are two of the fastest growing industries in the areas of electronic gaming, entertainment, medical services and military applications. Just look at the success of Nintendo Co., Ltd NTDOY's Pokémon Go.
Despite this, there are a few smaller companies where VR can bring a substantial amount of money to the bottom line.

Immersion Corporation IMMR is working on force feedback, the creation of the sense of touch to the user through the use of vibrations or motions. Immersion is one of the leaders in this technology, also known as kinesthetic communication and haptic technology. The stock has a nosebleed high trailing P/E earnings ratio of 901, but a more reasonable forward P/E of 26. The company is debt free and has $2.11 in cash per share.

Kopin Corporation KOPN develops, makes and markets virtual and augmented reality gaming, training, and simulation products. The company is currently generating negative earnings but is debt free with $1.42 in cash per share.

Microvision Inc. MVIS makes PicoP scanning technology for three-dimensional sensing and image capture. This company, like Kopin, also generates negative earnings, but is also debt free. It has 22 cents in cash per share. On the positive side, Microvision's quarterly revenues jumped 311% year over year.

These three stocks are all small caps, so they should be viewed relatively speculatively. But they could provide under the radar opportunities for investors interested looking to make VR and AR gains a reality.

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