Summary: After MDB gets involved, bullish independent authors seize upon several vague technology press releases and stock goes to near $50.00. Stock then implodes to below $2.00. But by this time MDB is long gone.
A few years ago MDB became involved with Microvision Inc (MVIS) which develops high-resolution mini laser display and imaging engines. According to an MDB case study, Microvision had 1 month left in cash on was swamped in near term debt. Its situation was therefore very similar to Unipixel prior to MDB. MDB helped Microvision raise $33 million to pay down debt and maintain operations. More importantly, MDB states that it "devised approach to reposition the perception of the company with investors". The approach devised by MDB clearly worked quite well.
Shortly after MDB became involved the company benefited from an outpouring of detailed technology analysis on SeekingAlpha, similar to what we have recently seen on Unipixel. Shlomi Cohen began by describing its "serious potential" which he bases on a newly issued "Buy" recommendation from MDB Capital as well as the attention that Microvision would get at an upcoming CES conference in Las Vegas. The stock had blockbuster potential "since the company is already fielding inquiries from leading handset manufacturers". As with Unipixel, the names of the manufacturers were not given. Is this starting to sound familiar ? It gets better.
When the share price was below $2.00, Craig Hallum then put a $6.00 share price target on the stock in a "Buy recommendation", clearly sharing MDB's optimism.
Just like Unipixel, various SeekingAlpha authors suddenly discovered this hidden gem and began to publish detailed analysis of Microvision's product and the industry. Just like Unipixel, Microvision had multi-bagger potential because it had devised a better technology and because it was clearly about to begin competing head to head with multibillion dollar industry giants such as Corning (GLW) and 3M (MMM).
Microvision continued to announce partnerships with global players global players. Although the names of the partners were not disclosed, these diligent independent authors were able to global players with 100% certainty that it must be global players. With Unipixel investors have now concluded it will be Dell Computer (DELL).
All of this hype caused Microvision to quadruple over the space of less than a year, reaching almost $50.00 (as adjusted for its recent 1:8 reverse split) despite very limited and vague disclosure and no actual commercial progress. The stock later subsequently traded down to around $7.00 (down 85%) as time wore on and revenues did not materialize as planned and as the partner was not disclosed.
At that time, a second round of press releases from Microvison again pushed the stock up from $7.00 to near $50.00 - a quick 7 bagger. In the wave two push, the press releases included very specific "multi-million" dollar contracts with specific parties such as the US government, Corning, and Lockheed.
Eventually it became clear that these were one time contracts to purchase prototypes and other non-commercial applications. As a result, the allure of the headline value quickly faded. Despite all of the hype and the absolute certainty of many bullish authors, as based on the compelling press releases from Microvision, the stock has now fallen from near $50.00 to just $1.90. Despite the many press releases announcing millions in potential business, Microvision has had nothing but cumulative losses which now exceed $150 million.
Now that the stock has fallen from near $50.00 to below $2.00, MDB no longer provides research updates on the company
Microvision: Seeking Alpha Pulls Critical Article
JUNE 24, 2008 › ERIC SAVITZ
Remember that negative piece on Microvision (MVIS) on Seeking Alpha? Well, the post has been taken down, replaced by a statement that reads: “This article has been removed, pending investigation of claims of material inaccuracies.”
The post was written by named Liam Mulcahy, who was described as someone who “works in a hedge fund that is short Microvision.”
Geoffreypumper... How can you miss the most obvious point of what you've posted?
Whether Liam Mulcahy was a real person, worked for a hedge fund or anything else is irrelevant! This all happened nearly FIVE YEARS AGO. And, since we can now review what he posted with perfect hindsight vision... the only important point is... HE WAS RIGHT!
And, even though your current ID wouldn't be created for at least three years... you (as usual) were wrong!!
There is no "plot to thicken". That article is ancient history. His opinions are now proven by time and reality.
Here's a "plot" for you: those who suggest MVIS is NOT a good investment are always proven correct and Geoffreypumper and his many alaises are ALWAYS WRONG.