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Game-Changing Tech Play – Ready for Next Move?
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GM, Folks! Jeff Bishop here.
Recently, Mark Zuckerberg has been making headlines like this:
“AR” stands for “augmented reality,” which is an overlay of digital information such as text, images, or videos onto the real-world environment.
It’s different from virtual reality, which involves complete immersion in a virtual environment.
Zuck thinks AR smart glasses will be the “next major tech platform” and could well replace the smartphone.
He’s been making the rounds talking about his company’s prototype smart glasses — called “Orion” — as the likely facewear for the job.
The trouble is he has also been making headlines like this:
Other reviewers have admitted the glasses “don’t make you look cool—you look like someone wearing tech on your face.”
I’ll spare you a photo, but trust me, these reviewers are spot on.
I think there’s a good case to be made that — for many people — smart glasses could replace or supplement the iPhone, but Meta’s thick, nerdy frames won’t do the trick.
My tactical stock of the day 🔥 is widely considered the first-mover in the smart glasses space, and has already produced frames that are indistinguishable from popular styles of Ray-Bans or Oakleys.
Go ahead and pull up Vuzix Corporation (VUZI) on your favorite trading platform.
I have a lot to say about the company and its facewear, but here’s why it’s worth paying attention to right now.
The stock has been on an absolute tear.
It’s up nearly 50% since the start of September, and just yesterday, it hiked 9%.
The go/no go algorithm — my favorite AI tool for gauging momentum — is flashing “GO GO GO!”
Just look at the strength of this stock right now.
The shorts are running for the hills, and for good reason.
Do you see that big price and volume spike on September 3 on the chart above?
That is when VUZI announced a $20M investment from Quanta Computer, a global Fortune 500 company with more than $35 billion in consolidated revenue in FY 2023.
$10 million of that investment arrived on September 16 in above-market share purchases, and two additional $5 million installments “will be subsequently done at the higher of $1.30 per share or a 30-day VWAP (volume-weighted average price).”
The deal marks a strategic partnership with Quanta “to jointly develop new AI smart glasses and manufacture waveguides at scale for both Vuzix’ and Quanta’s customers.”
Quanta’s vice president Frank Chuang said the investment is “a strong endorsement of our partnership.”
But I’m getting a little ahead of myself…
If you aren’t familiar, VUZI is a designer and manufacturer of smart glasses and augmented reality (AR) technologies for the enterprise, medical, defense, and consumer markets.
Unlike Meta’s gaudy Orion glasses or Apple’s new Vision Pro goggles, VUZI produces subtle, lightweight glasses that can be worn comfortably all day long, and that don’t make the user look like a cyborg.
Many of its glasses are indistinguishable from popular styles of Ray-Bans or Oakleys:
Vuzix’s Z100 smart glasses.
VUZI has been around since 1997, and it really is the “first mover” in the smart glasses space. As a result, it holds 375 patents and pending patents on critical technologies such as waveguides, mechanical packaging, and optical systems.
Waveguides are thin optics that are fully transparent but that guide light waves along specific paths so a user can see overlays on the real-world scene.
Vuzix’s waveguide-equipped glasses can pair with a cell phone via WiFi or Bluetooth, enabling limitless applications.
Already, its glasses are used in healthcare, manufacturing, and field service. They’re used by the hearing impaired and for real-time language translation.
But with the dawn of artificial intelligence, the potential of VUZI’s glasses has exploded.
As a Forbes writer put it in a December profile on VUZI, “Given enough time, something assuredly will supplant the smartphone someday… and it’s not a bad bet to believe wearables, AI, and AR will band together to lead the revolution towards a new regime.”
Over the years, the company has subcontracted for Raytheon, contracted with DARPA, received a $25 million investment from Intel, and partnered with BlackBerry.
Today, it boasts substantial investments from Cathy Wood’s Ark Investment, Blackrock, Vanguard, and Citadel.
In December, VUZI cut the ribbon on its state-of-the-art waveguide manufacturing facility in Rochester, New York, which can produce as many as one million waveguides per year in its current configuration, and there is additional room for expansion.
Unlike the expensive silicon carbide lenses that boost Meta’s Orion prototypes to about $10,000 per pair, VUZI’s lenses are vastly less expensive.
The Z100 smart glasses pictures above retail for just $799.99, for instance.
VUZI’s revenues have softened a bit in recent quarters but press releases over the last several months reveal it has many very hot irons in the fire that could ramp up revenues dramatically:
April 4: The company received “additional orders” from two aerospace and defense firms “to further develop and deliver waveguide-based display solutions in 2024.”
April 23: VUZI revealed orders from a Fortune 100 company for its M400™ smart glasses.
May 14: It announced a “multi-phase development contract with Garmin for next generation nano-imprinted waveguide-based display system.”
June 3: Vuzix received a Smart Business Innovative Research (SBIR) Phase I contract from the Air Force to “begin developing and supplying innovative waveguide and [head-mounted display] capabilities.”
June 13: VUZI announced a “significant leap forward in display technology” with the production of large format waveguides “which can range in diagonal size from several inches to several feet or more.”
And that’s not to mention its new strategic partnership with Quanta.
In a letter to shareholders this month, VUZI CEO Paul Travers wrote that “As of mid-2024, we had $10 million in cash, with an additional $10 million from Quanta, plus $10 million more expected to follow in 2025. Combined with top-line growth and cost-saving measures, we are confident in our operational runway through at least the end of 2025.”
A February article at InvestorPlace columnist included VUZI as one of “3 Companies Ready to Beat the Odds,” reasoning that “fundamentally, as a technology enterprise focused on wearable virtual reality and augment reality display innovations, the company stands on fertile ground.”
I think there’s a great fundamental case to be made for VUZI, but as always, be sure to do your own research and approach your trading in a responsible manner. Trading is very risky, and nothing is ever guaranteed, so never trade with more than you can afford to lose.
Please read the full disclaimer at the bottom of this email as well so you are aware of additional risks and considerations. Always have a well-thought-out game plan that takes your personal risk tolerance into consideration.
Bottom line: VUZI has been off to the races since its big September announcement, and any number of its irons in the fire — whether with DoD, Garmin, Quanta, or others — could turn into serious additional revenue.
The go/no go algo is lighting up like a Christmas tree and I think we could be in store for serious momentum today.
Be sure to keep VUZI at the very top of your radar, and let’s see where it goes!
To Your Success,
Jeff Bishop
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Just a quick heads up about this ad you're reading—as we’ve said, even though we like the company referenced above, and all the facts we discussed above are true to the best of our knowledge, we are running a business here. To distribute this information and help offset the costs of maintaining our large digital audience, in advance of writing the content above, we received twenty five thousand dollars (cash) from Sica Media for advertising Vuzix Corporation for a one day marketing program on October 10, 2024.
Before that, we received twenty thousand dollars (cash) from Sica Media for advertising Vuzix Corporation for a one day marketing program on August 12, 2024. Previously, we received fourteen thousand dollars by ach bank transfer by Lifewater Media for advertising Vuzix Corporation for a one day marketing program on April 27, 2023. These amounts were paid by someone else not connected to Vuzix Corporation. It might be obvious, but whoever paid for this might own shares and is likely looking to sell some or all of them at any time after we send out this information, which might affect the stock price. We may also buy or sell shares in the company at some point in the future, although neither RagingBull nor its owners own any shares of the company at this time. Also, keep in mind that due to the sheer size of our audience, if even a small percentage of people decide they want to buy this stock, it could potentially boost interest enough to hike up those share prices and cause a temporary spike, and the opposite is possible as our program ends, though that is not always the case.
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