There will be many ways to provide augmented reality and probably only few will become standard. Those companies who are developing those winning ways will make billions. Others will vanish. But now it is too early to know who will be a winner so every stock involved will have wild swings based on future projections as to the viability of their tech.
But for now:
"For many observers this is one of the key technologies to make augmented reality successful in the long run. Thin glasses that do not interfere with the person’s normal vision. While we may still have some way to go before we reach this optimal solution, at least at a low cost, this solution from Vuzix brings us much closer." - Norbert Hildebrand
Thanks for the link. It does look like sales are doing well if they don't even want to deal with retail customers. Must be because they don't have enough people for customer support and for such a new product they must be getting more calls than they expected.
But if they had problems selling M100 they would be happy to sell to anyone.
But since the retail customers have to prepay and wait 4 weeks - that is still a good deal especially if the margins are at least 50%. So if they up the price by $200 for retail customers - that should pay for extra customer support personnel.
During the CC the CEO said big customers were very reluctant to place big orders since the company had no money. Now with the offering we should expect them to land some sizable orders.
Looks like someone wants to get back in and wants someone to sell so the stock goes down. Are you saying if their products are in high demand that would be a negative? On the same token any whiff of a deal with a major partner and pps will be driven up. And what if that is a license deal? Those don't usually require much inventory, you know.
As far as I understand, the conversion price was calculated based on today's closing price. So from now on, there is no incentive to drive it down.
D= as applicable: (i) the Closing Sale Price of the Common Stock on the Trading Day immediately preceding the date of the applicable Exercise Notice if such Exercise Notice is (1) both executed and delivered pursuant to Section 1(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 1(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) the Bid Price of the Common Stock as of the time of the Holder’s execution of the applicable Exercise Notice if such Exercise Notice is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter pursuant to Section 1(a) hereof, or (iii) the Closing Sale Price of the Common Stock on the date of the applicable Exercise Notice if the date of such Exercise Notice is a Trading Day and such Exercise Notice is both executed and delivered pursuant to Section 1(a) hereof after the close of “regular trading hours” on such Trading Day.
I think I figured it out. The debt holders forced the conversion and the conversion price was calculated based on the closing price at the day prior to conversion. That is why they tried to drive it as low as possible.
Expect a filing tomorrow about the number of shares they got based on $1.5 price. Which is only 2-3 mln new shares, not 16 mln.
If the above is true, the stock should rebound back to $3 soon.
Cashless Exercise . Notwithstanding anything contained herein to the contrary (other than Section 1(f) below), if at any time of exercise hereof after the six month anniversary of the Original Issuance Date a Registration Statement (as defined in the Registration Rights Agreement) is not effective (or the prospectus contained therein is not available for use on a continuous basis) for the resale by the Holder of all of the Registrable Securities (as defined in the Registration Rights Agreement) at market prices from time to time, then the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according to the following formula (a “ Cashless Exercise ”):
Net Number = (A x B) - (A x C) / D
For purposes of the foregoing formula:
A= the total number of shares with respect to which this Warrant is then being exercised.
B=the quotient of (x) the sum of the VWAP of the Common Stock of each of the five (5) Trading Days ending at the close of business on the Principal Market immediately prior to the time of exercise as set forth in the applicable Exercise Notice, divided by (y) five (5).
C= the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.
D= as applicable: (i) the Closing Sale Price of the
Sorry about that. The filing from 10/30.
I am still trying to understand it, but it just doesn't make any sense for the company to agree to convert all the debt at 20 cents. If that was the case, the stock would've tanked then. No one would be paying $3 for a stock that would be issued at $.20 come December.
I missed it by seconds. When I saw the bid was $2.95 and ask was $5.6. It took me some 5 seconds to get the order to sell at $2.95 but by that time the price started falling and only 100 shares traded at $2.30.
Sometimes it pays to have a limit order sitting there at an outrageous price.
Could you please elaborate:
1. What non-public information the debtholders no more in possession and what it has to do with their ability to short.
2. What prevented them from quietly shorting the stock after 10/25 since they pretty much knew the will be able to short it later.
Not everything. The 8-K from 10/27 says about 20 cents but I am not sure I understand what that means.
The worst case (all $4 mln can be converted at 20 cents) - doesn't mean the debt holders will rush to short all 16 mln shares and drive the stock below $1. If they let the stock rise they will be able to sell at higher prices and still get their shares at $.20.
But I am not sure it is the case.
Someone posted earlier today the company amended the terms of the old debt and that the debt holders can now convert the debt at 20 cents and that the debt holders are shorting the stock.
I just read SEC filing and didn't find anything about the above change of the terms.
Can someone please point to me where I can read the details of the above?
Now they cannot buy anything. Even if they decide to buy 50,000 shares the stock will be up 20%. And another 50000 shares - and it is at $4. That is actually is a reason we have no volume. All the potential buyers are afraid to buy a stock that has almost no interest. Everyone wants to feel he/she is not alone and that others feel the same about the stock.
But CES is coming and some speculators will start taking positions and that should be enough to work its way past $3.20 and that should be a sygnal to others to jump in. The higher it goes, the higher will be the volume and the higher will be interest in this stock.
So when it is trading at around $8 and the volume is in hunderds of thousands - then potential buyers could either take a sizable position or approach with a double digit buyout price.
I would hope that most of those who watched the episode and got interested didn't buy shares right away and are doing their DD over the week end. Even some of them decide to buy - they will take care of the resistance at $3. And I can guarantee that most of them won't buy because of the low market cap. Those are serious investors that are always the last one to the party. They won't touch a stock trading at $3 but would be piling up if it was $30. But even if small percentage would buy , the stock will be going up and more up and that will bring more and more buyers.
Still now most of investing public haven't connected the dots and haven't realized that Smart Glasses are going to be a huge story next year. Google are going to take care of the marketing and hype and every player would benefit. Especially those players that are ahead of Google and being mentioned each time there is a talk about GG.
I have a dream: $6 by February, $20 by July, $40 by end of 2014. Who needs a buyout?
He showed sun glasses prototype that would use waveguide tech and be available next summer (hopefully).
Yahoo wouldn't allow links so use google. Actually the company should've issued a PR and provide a link to the interview.
Not sure what time it was broadcast, but can explain the spike around 1.30 pm.
Actually one would expect higher volume considering the chart looks very positive.
Or maybe it was broadcast after the market close? And the spike was when someone found out about upcoming interview. That is more plausible explanation as to why the volume was so low considering such a nice interview on major business channel.
Let's hope those interviews are will be coming round the clock.
Nothing is impossible. I've seen this many times with heavily shorted stocks. The shorts are smart and correctly predict the downfall but then get greedy and don't cover. And got trapped. Like in this case. There is no downside for a year since the market cap is pretty much equal to the cash the company has. So shorts should be covering , but they can't. They are trapped. If they try to cover even 10% of thier positon - the stock woudl go to $10. So instead they try suppress every rally hoping that eventually the company runs out of money and they would provide financing in exchange for the shares. So they would offset thier short position.
And very often such strategy works. But sometimes it doesn't and other big players step in and drive teh stock up and shorts have no other choice but to cover.
Will it happen here? Who knows. But there is a huge gap from $10 to $40 and someone as powerful as the shorts might want to exploit it.
It is serious only by current low volume standards. Maybe some 100K shares for sale tops.
One big player might think of those shares as his only chance to buy a big position because after it closes over $3 - there won't be any more serious walls until the next local top. Maybe at $6.
And if someone wants to buy 60000 shares should provide some clues.
The only resistance is at $3 - after that there is none. And as teh company becomes know to virtually everyone the buying interest will only get higher. And funny thing is the higher the stock will go - the more and more people would want to buy it.
It is not that often you have a small cap stock in a company that is known to average person. Most of the companies don't sell directly to consumers. TASR comes to mind.