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MicroVision: $150 stock when acquired for $20 Billion?

4/12/2021 Anant Goel

 

I can’t tell you what people expect from the release of Lidar A-Sample during the month of April, but I wouldn't look for an announcement that the company was sold. I wouldn’t look for an announcement that someone took an equity stake in MicroVision. However, I would look for an announcement that Lidar A-Sample is already done. In my opinion that is the realistic expectation and may happen towards the end of April, 2021... in just a few days from now.

I would look for an update on all of the relevant topics with a positive spin… that’s the new MicroVision company where the minor dilution of (2.5 million shares sold for $50 million) was done before the 4th Qtr Earnings CC, and not afterwards as has been the case over the past 15 years.

With the addition of 30 more employees in the last 60 days, I expect MVIS stock to move forward and not backwards. I would NOT expect that everything is status quo. MicroVision of today is an energetic, vibrant and a wealthy company with a market cap of over $2.3 billion… a historical high.

So if you own the stock now at the current price and we find out that things are improving and progressing well, why would you sell?

I would look for a mention that we have 50 million more going into 1st Qtr Earnings CC. I would expect that the Lidar A-Sample is on target for end of April and some key specs have improved. I would expect that we have multiple companies conducting due diligence toward acquiring the company.

MicroVision: Why a $150 stock when acquired for $20 Billion?

Real billion dollar ideas have trillion dollar market size, they are scalable, and leverage the drivers of growth to go viral or global.

In my last research on MicroVision (NASDAQ: MVIS), I introduced this 20 year old high-tech company that is at the cusp of acquisition by a major technology company. In the last few weeks, MVIS stock price has gone up by 60-fold [from 25 cents to over $15] on well qualified speculations. Now it is trading in the $12 to $16 range giving new investors the opportunity to take position; for the future of $70 to $150 dollar trading range in the next 12-months or so... depending on the acquisition price of $10 billion or $20 billion.

Here's the short answer...

Each of the Six LBS core technology verticals can spawn Trillion dollar markets of the future. Considering the diversity of its product line, built around the LBS core technology over the last 20 years, and protected by it's IP and 500 patents, each core vertical can spawn markets worth trillions, and be worth billions in an acquisition or a merger.

Why sell the company or merge with a deep pocket Tier 1 Technology partner...

At low volumes, the cost of components that MicroVision sells to its Tier 1 partners is 5 to 10 times higher than what it is sold for in anticipation of large quantities... and loosing money on each component sold is what has shaped the company's past blunders loosing millions of dollars each quarter for the last 15 years.

Finally, to sell the company, or to sell one or all of its 6 core vertical engines that can spawn trillion dollar markets, is the right decision. Under the leadership and stewardship of a deep pocket Tier 1 technology partner from the FAMGA gang can truly realize the potential of MicroVision technology, and bring hundred of products to the market that will be sold in billion units per year.

In the last few weeks, MVIS stock price has gone up by 60-fold [from 25 cents to over $24] on qualified speculations. Now it is trading in the $12 to $16 range giving new investors the opportunity to take position; for the future of $70 to $150 dollar trading range in the next 12- months or so... depending on the acquisition price of $10 billion or $20 billion.

What to expect from sale or merger of MicroVision...

Over the last 3 decades, the FAMGA tech giants — Facebook, Amazon, Microsoft, Google, and Apple — have collectively made 770 acquisitions. Even amid the Covid-19 pandemic, some have continued to write checks, with Apple being the most active acquirer in 2020 to date among them.

This FAMGA group of acquirers has deep pockets. Some of their biggest checks have been written for high-profile companies such as career platform LinkedIn (acquired by Microsoft for $26.2B), chat app WhatsApp (Facebook for $22B), and video-sharing platform YouTube (Google for $1.7B).

Luminar Technologies (LAZR) went public and the stock price at $40 dollars more than doubled in two days as a public company, with a market cap of over $14 billion… and made its co-founder CEO Austin Russell a billionaire ─ at the age of 25. Luminar specializes in making Lidar sensors for the automotive sector that will be used in the development of autonomous vehicles.

However, the keys to several future technologies are being held by an older company MicroVision that was always ahead of its time. MicroVision (MVIS), founded in 1993, is most famous for their Micro Electro Mechanical systems (MEMs) and Laser Beam Scanning (LBS) technology that is protected by over 500 patents.

MicroVision’s automotive Lidar (with the camera functionality included - possibly) will be packaged in a solid-state module as a "solution" that is smaller, cheaper and more versatile than potential competitors like Luminar and Velodyne. 

Autonomous vehicles of the future will utilize MicroVision’s Lidar because it is a superior “Best in Class” technology compared to Luminar and Velodyne; and due to its small size, 280M range, and point cloud density of 20 million points per second.

TOP 5 ACQUISITIONS BY COMPANY

Below, we break down each of these companies’ top 5 acquisitions by value. Read more about these deals in the posts linked below.

Facebook

  1. WhatsApp ($22B, 2014)

  2. Oculus VR ($2B, 2014)

  3. Instagram ($1B, 2012)

  4. CTRL-labs ($1B, 2019)

  5. LiveRail ($500M, 2014)

Amazon

  1. Whole Foods ($13.7B, 2017)

  2. Ring ($1.2B, 2018)

  3. Zappos ($1.2B, 2009)

  4. PillPack ($1B, 2018)

  5. Twitch Interactive ($970M, 2014)

Microsoft (Top 10)

  1. LinkedIn ($26.2B, 2016)

  2. Nuance ($19.7B, 2021)

  3. Skype ($8.5B, 2011)

  4. GitHub ($7.5B, 2018)

  5. ZeniMax Media (7.5B, 2020)

  6. Nokia’s Devices & Services Business ($7.2B, 2014)

  7. aQuantive ($6.3B, 2007)

  8. Mojang ($2.5B, 2014)

  9. Affirmed Networks ($1.4B, 2020)

  10. Visio Corporation ($1.4B, 1999)

  11. Navision ($1.3B, 2002)

Google (Top 6)

  1. Motorola Mobility ($12.5B, 2012)

  2. Nest Labs ($3.2B, 2014)

  3. DoubleClick ($3.1B, 2007)

  4. Looker ($2.6B, 2019)

  5. Fitbit ($2.1B, 2019)

  6. YouTube ($1.7B, 2006)

Apple (Top 7)

  1. Beats Electronics ($3B, 2014)

  2. Intel — Smartphone Modem Business ($1B, 2019)

  3. Dialog Semiconductor ($600M, 2018)

  4. Anobit Technologies ($500M, 2011)

  5. Texture ($485M, 2018)

  6. Shazam ($400M, 2017)

  7. NeXT Computer ($400M, 1996)

As an investor you know change equals opportunity… the bigger the change, the bigger the opportunity. The next few years are going to be either the most interesting, exciting, and lucrative years for you or you’re going to be left behind.

Change can mean big profits for investors getting in on the biggest changes early.

These two sectors -- artificial intelligence and TaaS -- are all seeing massive changes and we’re just starting to see their impact in the world.

Historically, when you just start to see these changes is the best time to buy.

And it’s why in a few years you’ll be kicking yourself for not jumping on them when you had the chance.

Some of the best, most direct, and highest-potential ways to jump on them are with Microsoft (MSFT), MicroVision (MVIS) and Tesla (TSLA)

Best regards,


 

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