Monday, October 23, 2017

Vuzix - From Mega Deal to Mega Disappointment?

I believe in giving credit where credit is due, so credit for this posting has to go to SeekingAlpha writer Mark Gomes.  Back on August 16th 2017 Mark published an article on Seeking Alpha:  "Did Vuzix Just Announce a Mega Deal".  I'm assuming most VUZI watchers read it, and probably near 100% of VUZI investors.  

You might have missed the follow up post he did a little over one month later on September 16th however.  A post in which he writes about why he closed his VUZI position.  The title tells it all:  "Is Vuzix a Wounded Warrior". 

It was easy to miss because, while the first bullish article was published on the main site as an article, the second was an "instablog" which doesn't even show up if you search out VUZI on the Seeking Alpha site.  The only way you might see it is if you follow Mr. Gomes on Seeking Alpha and then choose to peruse his instablog.

Included in his reasons for closing his VUZI position was a video review done of the Cyber Timez software using Vuzix glasses. I've watched the video a couple of times, and while the gentleman doing the review never mentions Vuzix by name (a small blessing perhaps), when he holds up the box with the glasses it clearly says Vuzix (check at 00:49).  I don't think you ever see the Cyber Timez logo. 


If you read the comments below the video you'll notice a couple of people suggesting OrCam.  OrCam is another company which supplies glasses to aid the visually impaired, and they have partnered with the Wounded Warrior Project.  You can read about OrCam and WWP here:


As I noted in an earlier blog post, the above referenced Wounded Warrior Project is not to be confused with the Wounded Warrior Program that Vuzix partner Cyber Timez is affiliated with.  While the WW Project is a large and well known charitable registered orginization.  The WW Program that Cyber Timez is affiliated with is not a registered charity.  It is supplied by a company called Minton-Jones, a provider of office supplies, furniture and printing headquartered in Norcross Georgia.  

I know the Wounded Warrior news was hyped and touted over and over on social media.  I guess its small wonder that nobody shared the above video.  Here's an earlier video showing the host of the Blind Spot talking with the Sean of Cyber Timez demonstrating the glasses, and they're working. 


Personally I find the voice to be incredibly annoying, but then maybe that's just me, I can't stand the voice prompts on my GPS.  Still, I think it would be easier to simply ask someone what color shirt they're wearing, or what kind of room I'm in.  

Comments always welcome....but no profanity.  If you leave a comment like Robert did on the first video where he said:  "I will never buy this product it sounds like it's a real piece of s***" It won't be published.

Peace out.

2 comments:

  1. Dear Mr. Joe,
    Nice article, but for me it isn't clear what your point is with it. SDo you think the current low price/share is a buy-opportunity or should we leave Vuzix as quickly as we can? Although I'm only a small private investor who isn't here to 'short' and theirfore I'm for the 'long' position, I get a little nervous with the performance of Vuzix the last months. Already my shares are down -22%... So I wunder if it's best to take my losses or to be confident...

    ReplyDelete
    Replies
    1. I don't know your situtation....your tolerance for risk, your timeline, etc. If you draw a chart from Sept 2016 to present the trend is pretty clear....VUZI is a yo yo on an escalator and the escalator is moving down. Its a volatile stock that makes big moves up and big moves down. And for the past year+ each spike is lower than the one before, and each drop goes lower...

      Unless or until the trend reverses.....Their next quarterly filing should provide an indication in any event, if they report millions more in losses then I would expect shareholders to respond accordingly.

      Delete