Microvision (MVIS) Marked As A Dead Cat Bounce Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Microvision ( MVIS) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Microvision as such a stock due to the following factors:

  • MVIS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.3 million.
  • MVIS has traded 335,879 shares today.
  • MVIS is up 9.2% today.
  • MVIS was down 15.2% yesterday.

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More details on MVIS:

MicroVision, Inc. engages in the development of its proprietary PicoP display technology that can be used by its customers to create miniature laser display and imaging engines. Currently there is 1 analyst that rates Microvision a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Microvision has been 1.4 million shares per day over the past 30 days. Microvision has a market cap of $90.8 million and is part of the technology sector and electronics industry. The stock has a beta of 0.50 and a short float of 4.1% with 0.16 days to cover. Shares are up 84.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Microvision as a sell. The area that we feel has been the company's primary weakness has been its unimpressive growth in net income.

Highlights from the ratings report include:
  • 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 4.2%. 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 -9.33%.
  • Investors have driven up the company's shares by 63.80% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in MVIS do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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