What is up, everybody welcome to trades trades, where we get technical analysis on different stocks in the stock market, as well as buy hold or sell opinions on these. Given stocks, i'd like to start off by saying merry christmas to everybody, who's out there watching the video right now, i hope you're enjoying lots of good time with your family and friends and, if not, i hope, you're enjoying time by yourself doing whatever you like to Do because that's what the holiday season is all about! I'd like to preface by saying that i'm not a financial advisor nor expert, i'm just a random dude on youtube. So take what i say with a grain of salt you'll have to excuse that i'm a little bit quieter today. I am hanging out in wisconsin with my girlfriend and her family and everybody's sleeping i'm trying to be respectful of their sleep schedule.

So you're going to have to deal with a little bit of asmr style, screen, recording and video production. Last thing, i'd like to say before we get going is, if you think, you'll enjoy this video, please uh drop a like, if not dislike, either way, you're going to be helping out the youtube algorithm and if you'd like to see more content like this, please consider Subscribing to the channel and joining the family, i would greatly appreciate it i'd love to get to 100 subscribers by sunday we're currently sitting at 73 and i'm thankful for every single one of you. So with that being said, today we are going to be looking at ticker symbol, mvis microvision incorporated, and this may be a little atypical compared to my usual videos. But the main reason that i want to talk about this is because i don't feel like there is a lot of proper information on this company on youtube at the moment, and there is a lot of upside with this stock granted.

There is a little bit of risk, but there's a couple of ways we can play this out. So, let's start off by looking at the technical analysis over the last five days of this stock. So you can see here i'll, draw up a support level sitting at about 4.71 and we have a secondary support level which we seem to be currently hanging at right now of about six dollars and 30 cents. We did see a dip below this, a pretty heavy price rejection, so you could say that this is another support line right here at just under six dollars: five dollars 94 cents.

But, however, once we did drop below this, we did go back up pretty drastically in the regular market hours and the after hours. We are up a little bit as well. Our current resistance level on this stock. The overarching highest point is going to be about 9.73.

However, in the short term, we are going to be looking at first getting above this range right here of 718 and then a secondary support, as i was a secondary resistance at seven dollars and 36 cents now i do see the stock going up. I think this is a little bit oversold and you can see here. There is a couple points in the rsi indicator: the relative strength index. Just to give you a little bit of insight, the rsi dictates how shareholders are trading the stock, the lower and closer to 30, the more oversold the higher and closer to 70, the more overbought.

I do think this stock is a little bit oversold in the last couple of days since we've been up at this 973 price range, and i can understand why i see this stock being a more risky investment and a lot of people. Don't really think there's a lot to back up mvis, so it does seem a little bit risky, but there is a reason that this stock has shot up as much as it has over the last 10 days. I mean if you look, if you look here and you got in at two dollars and seventy five cents and you got out anywhere near this high point of 973. Even if you got out you know eight fifty or nine dollars you would be looking at.

You know 300 percent margin of return on your investment, which is an incredible run, for you know about seven days um. So if you did that, congratulations, pat yourself on the back, however, there is a lot more upside in the stock and i want to clarify first. Why this stock has run up as much as it has, and secondly, where the upside really lies with with this investment? So i have pulled up here: micro, visions, q3, financial and operating results, and what is interesting about this is maybe not so much their financial results, which is actually pretty promising. It's not a ton of revenue, but there's a lot of future upside here.

It is probably the talks and possibility of a possible company acquisition by other companies, and i want to tell you why i think this is possible once we get into this. So let's take a look here at summit sharma. Now it's very important to focus on a couple of things. Let's read this.

I would like to start by sincerely thanking all of our shareholders for your support and approving the authorization of 60 million additional shares of common stock at our special shareholder meeting a few weeks ago, and if you're not really familiar what that means. That means that there's going to be a shared dilution, we need to look at when this was. This is q3, so this was a while ago keep that in the back of your mind, this was, during the you know, august to october time frame um. So that does raise a little bit of concern.

You do not want to be a shareholder when there is a sheer dilution, because this will drastically decrease the value of your stock. However, when a company is going to do this, they will announce it, and that is the beauty of having a stop-loss set. You will see shareholders pull out of their positions and your stop loss should go off as long as there are buyers that are interested in the stock, which is almost always the case, especially during regular market hours. So keep that in the back of your mind, what i am most interested in is this: today we have 41 talented people focused on working hard towards accomplishing this goal and the goal being to maximize shareholder value, which would include sale of the company in a transaction That would recognize both the short and long term value of our technology.

We continue to explore all options while maintaining strict control of our expenses, with the support of our shareholders and continued dedication and health of our employees. We are prepared for the work ahead now. What this means - and this is a huge reason why the stock price has shot up so much in the last 10 days is there is talks of a potential company acquisition by other companies and the top two that i've read about online are microsoft and ford, and A lot of people think this might not happen. You know there is no clear date as to when this company acquisition would occur, but if it does the upside on.

This is extremely high. And let me tell you why if a company is bought out for every billion dollars, that the company has bought out for the shareholders will receive a certain dollar sign amount for the share of the company. Now, right now the share is trading for just over six dollars and fifty cents at 659 in the in the after hours. So you would take that dollar sign 659 or whatever the current stock price is and multiply it by every billion in sales.

That comes from this acquisition, so if a company buys out microvision for three billion dollars, you would take that multiple of three times 659 and you would have a share holder price of just under twenty dollars or just over twenty dollars, i'm not a great math guy. That's where we have programs like excel now, that is a very low end deal. If you are bought out by a company like microsoft, you could be seeing anywhere from four or five six, all the way up to 10 billion dollars. That would go towards this company acquisition and, if you, if you take a 10x multiple to your shareholder price of 659 you're, looking at 60.59 per share, which is an insane amount of return, that's a great margin and you would become very well off very fast so That is a huge incentive to being a shareholder of the stock.

I am currently a shareholder. I will get into my position later in the video, but that is a great potential upside on this stock. Let's continue to read, i would like to start by sincerely thanking all of our shareholders. Approximately 150 million shareholders voted in the shared dilution.

They have a very long track, history of delivering advanced products and augmented reality with our laser beam scanning or lbs technology, and this is something that i know from personal experience just to preface i am an officer in the u.s army and i work in the air Defense artillery branch of the army - and what is awesome about microvision is they are a technology that is utilized by the army um for training purposes. So i do not see this company going bankrupt or not being bought out by another company because they do have technology that is very crucial to the government. The the american government and the american army has a bias and a reason to keep this company alive. So i do not think that you know this: this stock is going to um over the long term, um go bankrupt or cause shareholders to not get a return on their investment.

I do think it is in the best interest of not only the american people, but the us army to be bought out, and especially this company. They offer way too many products not to either fix their financial situation or be bought out by a company which would drastically increase your shareholder valuation on the stock. Now another thing that they talk about in this in this q3 results is the possibility of selling a patent on some of the technology. Now why this would not produce as much upside as as an acquisition deal, would it would increase the shareholder price, as the company would drastically increase the amount of revenue that they that they have on their financial statement for q4 and people love to see those numbers Which is a fantastic thing to have the last thing that i want to point out on this is their revenue.

So let's look at their revenue down here, you can see in the third quarter. Revenue was 639 000 with 539 000 of royalty revenue and 100 000. In product revenue they do not have a bunch of products available. Now this is a very early stage company, all the third quarter.

Royalty revenue is attributable to our april 2017 customer in comparison. The second quarter was 580 000 of revenue um, and this is the huge kicker for me third quarter. Cost of revenue is zero, which means the resulting gross profit was 639 000 in comparison. Second quarter gross profit was 588 000, so not a huge increase in profit.

However, this is a huge thing: their cost of revenue was zero dollars, which means that the upside here, when they can start producing a very high gross profit, is extremely high. This is something that i think is very overlooked by by potential shareholders, people that are looking to buy this company is they don't have any costs and if you don't have any costs you have extreme upside. This is, this is uh very important for the value of a company. Now i am going to leave a link to this in the description down below if you take a a very uh, a closer look to the company in itself, but basically to sum that up and to do the homework for you, the potential upside here and the Reason why the stock has been seeing so much traction is there is a lot of talk of this company being bought out by another company, specifically by ford now they did just recently bring the old ceo of ford.

You can correct me if i'm wrong in the comment section down below this is what i read online. They have recently brought in the ceo of ford, the former ceo, to be part of the team of nvis. Now, while this person does not currently have any relations to ford, it is safe to say that they do still have insider information on ford and connections to the employees and the higher ups at ford. So i think the potential of a buyout for mbis by ford specifically is extremely high, and if this does happen, the share valuation honestly is just a psychological barrier, because it would not really matter what the price on this stock is, because if they are bought out By ford or microsoft, or any other sort of company that could utilize this sort of technology, which is a lot if you think about how hot the ev sector is right now and how hot the virtual reality sector is right.

Now it's very high there's a very high chance that this does happen. So that is something to keep in the back of your mind, i do have a position in microvision. I have been averaging down my cost over the last two days as i've been doing research. I have sold out of some of my positions and very heavily weighted.

This i do have about fifteen hundred shares at an average cost of seven dollars and two cents. So i am down a little bit of money, but my expectation and hope is that this company will be bought out by another major company, and that is where you're going to see the huge amount of profit that will come from this from this stock. Now worst case scenario, let's say they are not bought out by another company. Well, that is okay, because i still think there is a lot of upside if you would just like to trade, this stock we're sitting an all-time high of 9.73 and even though the last two days have been bearish territory, it has been read.

You need to pay attention in technical analysis, to the long-term trend and the long-term trend here, one two: three: four: five: six: seven, eight days straight that we were in complete bullish territory where we hung around above the vma the volume moving average. The bulls were in complete control. There was no instance in which this company was was trading underneath the vma, except for right here, which means in the long term. This is extremely bullish territory, and i can consider continue to see this run up so things that you're going to be looking for, if you'd like to just trade this stock and not worry about the risk of you know a potential non-buyout of this company.

Is these resistance levels? So if we can break above seven dollars and eighteen cents and then seven thirty six, you could be seeing a run up to old price valuations in the 850 to nine dollar range and, if you're bought in anywhere. You know between six dollars. Seven dollars seven dollars and fifty cents, even you could be seeing a very solid upside of about a dollar to a dollar fifty per share, which is a great return on margin. If you are interested in trading the company that way, if you have any questions about the possible buyout of mvis, please drop them in the comment section down below.

I may make a potential follow-up video if this gets enough traction. If, if enough, people are interested - and i am very interested in mbis as a company - i think i think um - this is very overlooked and there's a lot of rumors and a lot of lack of information out about this company and a lot of people. Don't even understand why this ran up so much because seemingly there was no news or catalyst that really pushed this stock up as much as it has gone up. So i think there is a little bit of insider information going on a little bit of uh institutional buying.

That is happening here, and that is something to keep in the back of your mind. Last thing that i want to point out is the amount of volume, and you should pay attention to this. This stock, usually in a 15-minute chart trades at anywhere from thirty thousand to two hundred twenty five thousand shares. However, on the highest point, we're seeing eleven million eight million ten million shares that are traded in a fifteen minute window.

You do wan na continue to see the volume state relatively high on this trading, because volume drives volatility and volatility drives higher price valuations. So that is what i have for ticker symbol, mvis. If you would like to write down these numbers that you have an idea of what to expect on market open on monday, i do recommend you do that, because if we do drop below these support levels, you could expect to see a very drastic sell-off. It will likely be a red day, especially if we drop all this 594 range.

However, if we do push into the seven dollar mark - and we go above this resistance level of 718 - i do think you are going to be seeing bullish territory and a relatively green day, so that should give you an idea of what to expect. Of course, i cannot predict the future if i could i'd be a very rich man and so would all of you but um. I hope that was helpful. So once again please drop a like if you enjoyed the video drop a dislike.

If you didn't either way. You're, helping out the youtube algorithm, consider subscribing to the channel and joining the family. I'd very much appreciate it, and i will see you guys next time. Peace,.