Kim I am addressing this to you because you seem knowledgeable( and I am of Norwegian descent)
I have been a member of Silicon Investor since September and have been lurker on this thread since then. This is my first message.
I invested in Microvision during the second round of financing while the concept was still in the HIT Lab. I received stock during the IPO. I have purchased additional stock since then. Therefore, my opinion is biased.
I visited the company for the third time 6/16/98. I remain very impressed with both the technology and the management. They are handling the explosive growth in their company and the tremendous development in their technology in a most business-like manner. It has been quite gratifying to me to observe from a distance the unfolding of the original business plan. Certainly, there have been necessary changes, but overall they are right on track.
One of my concerns was the "burn rate" of available cash which prompted my latest visit. The original plan was to have a large infusion of cash by exercising the warrants. Now that is seemingly unlikely to occur soon, the company is planning alternatives. The plans seem quite obtainable although I am not privy to all of the details. A young company only has so many choices: debt, further equity financing (public or private), and partnerships. Since they are so far along in development, all of these are available. I am convinced the management will continue to make good choices.
It is too bad the stock price is not high enough to trigger the warrants. Certainly, they would be able to finance research and development at a faster pace with more cash. However, they are well along in their process. They are developing high end products for military and receiving income for their work. They are proving themselves with delivering those products while obtaining many patents. The patents will make any competing companies have great difficulty matching Microvision and increase Microvision's worth to its partners.
They do not seem highly concerned regarding the lack of the blue laser light source because they have worthwhile interim solutions while on this strong migration path to full color. Many military and manufacturing solutions can be easily solved with two colors. What's really impressive is the solutions they are delivering now will be faster smaller and more useful in a very short period of time. The big consumer products will simply take a little longer. I am convinced they have the resources both with the business side of scientists, sales and marketing, and management as well as the finances to survive until they are profitable.
I have made the decision to purchase more. At this time I am buying the warrants because I am sure the stock will reach $24 before the warrants expire. I am an investor not a speculator, even though I investing in a small speculative stock I plan to hold until they become successful. I think they will be spectacularly successful!
Rob |
