MicroVision (MVIS) Extends Thursday's Rally

NEW YORK (TheStreet) -- After exploding nearly 100% on Thursday, MicroVision (MVIS) is making gains again to end the week more than double last week's share price.

By midmorning, shares had surged 11.6% to $2.98. Since Thursday, the stock is up 114.8%.

The nano-cap was higher after Sony (SNE) revealed the use of MicroVision's patented technology in its new projector module. The pico projector module will have HD resolution, incorporating MicroVision's PicoP technology which allows image and video to be projected from mobile devices.

TheStreet Ratings team rates SONY CORP as a Hold with a ratings score of C. The team has this to say about their recommendation:

"We rate SONY CORP (SNE) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 468.6% when compared to the same quarter one year prior, rising from -$72.42 million to $266.97 million.
  • SNE's revenue growth trails the industry average of 29.1%. Since the same quarter one year prior, revenues rose by 11.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that SNE's debt-to-equity ratio is low, the quick ratio, which is currently 0.62, displays a potential problem in covering short-term cash needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Household Durables industry and the overall market, SONY CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for SONY CORP is currently extremely low, coming in at 7.87%. Regardless of SNE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.29% trails the industry average.

TheStreet Ratings team rates MICROVISION INC as a Sell with a ratings score of E+. The team has this to say about their recommendation:

"We rate MICROVISION INC (MVIS) a SELL. This is based on a variety of negative investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • MVIS has underperformed the S&P 500 Index, declining 18.94% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Electronic Equipment, Instruments & Components industry average. The net income increased by 4.6% when compared to the same quarter one year prior, going from -$3.85 million to -$3.67 million.
  • MVIS, with its very weak revenue results, has greatly underperformed against the industry average of 4.8%. Since the same quarter one year prior, revenues plummeted by 63.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has slightly increased to -$3.65 million or 7.26% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -15.87%.
  • MICROVISION INC has improved earnings per share by 13.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, MICROVISION INC continued to lose money by earning -$1.15 versus -$2.64 in the prior year. This year, the market expects an improvement in earnings (-$0.52 versus -$1.15).

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