Believe me, I have enjoyed watching the MVIS pump since it got started last week. There is nothing more enjoyable in my opinion than watching institutions panic, unable to understand what is going on right in front of their eyes while some normal people make a boat load of money, however, I think it’s probably time to sell.
Like any pump, there comes the dump. Some will win, others will lose. I will say off the bat that I have never been invested in MVIS, despite all of the coverage. It seems clear to me now, as it was clear to me days ago when the pump was inevitable, that the time to sell has occurred.
With the news of the new LIDAR technology being announced by the company today, it marks one of the key turning points in the MVIS thesis. The company might have some short interest that is part of the trades narrative, but the kind of ground the company has made recently isn’t purely because of wall street bets. It does have something to do with this technology and an information disparity that the market didn’t fully appreciate.
Well now they do. Until this LIDAR begins to win contracts and generate some serious cash, the company on most levels is massively overpriced. Earnings tomorrow will not hint at any massive acceleration in revenue, it’s too early for that. The fact that they announced the LIDAR the day before earnings makes me think the news might be bad. Why? They don’t want the success of their endeavour to be missed due to the reporting of bad news. But that’s just plain old speculation.
Wall Street Bets could very well continue to pump this thing going forward, but it’s certainly the greater fool theory playing out as there wouldn’t be any play other than to be the person not to get caught in the mess. Gamestop had the short interest saga, this doesn’t. It’s a very different story.
Regardless of what you do, it’s been a great ride so far. We would really appreciate it if you followed us on twitter. We want to be something better than the likes of investor place and boring old Yahoo. It would mean a lot!