Tuesday, November 9, 2010

Microvision: Take Over Candidate

Microvision will do fine in the year 2012/2013… but it may not be with its current management still in place or with AT as the CEO of the company. In all probability, Microvision will be taken over in the next 12 to 15 months… to put an end of this sad story in the hands of an ineffective management team.

If the BODs continue with the same old... same old for another 6 to 9 months, the game is over for Microvision as an independent entity. Fortunately, the current PIPE funding thru Azimuth may provide enough money to last another 6 to 9 months as a going concern… without having to worry about breaching the “loan or equity covenants” with their spend thrift lavish operating life style at Microvision.

You may not like what I say, but the current management has no vision, gumption, business strategy or ability to execute at Microvision. Microvision CEO looks like fish out of water and he operates the company like a rough riding cowboy shooting from the hip pocket. Under his leadership over the last four years, everything that’s done at Microvision seems like “reactive” and not something that was part of the plan or “pro-active”. Over the last sixteen quarterly earnings CC, this management team has exposed themselves to their short comings in managing most all aspects of financial and business affairs of the company.

It is quite visible now, after four long years, that the current management lacks business growth strategy; lacks vision; lacks gumption; lacks risk management savvy; lacks contingency planning; lacks fiscal responsibility; and certainly lacks ability to execute as a business-for-profit company.

I will back-up every statement that I make here in more detail in later posts on the blog… but for now, mark my words that the current management of Microvision, contrary to what I may have said before, is the worst ensemble of novices under the “learn as you go” directionless leadership of AT.

At the risk of repeating myself, mark my words…

The current PIPE funding thru Azimuth may provide enough money to last another 6 to 9 months as a going concern… without having to worry about breaching the ‘loan or equity covenants’ with their spend thrift lavish operating life style at Microvision. However, the last stop funding is in motion... after that; game is over for Microvision as an independent company.

This PIPE funding costs Azimuth not a cent... because; it is nothing more than a conduit for MVIS shares from the treasury to be sold to investors-at-large─ with Azimuth acting as the facilitator.

However, once this money is flushed down at an elevated rate approaching $12 million per Qtr… what’s next?

I’m sure the recent purchase of a patent portfolio from Motorola is a good deal; as it further strengthens Microvision’s patent portfolio. However, it’s not more patents and diversity of products that Microvision needs at this stage. What they need is fiscal responsibility to conserve capital for the next 12 to 18 months while they patiently wait for cheap diode green lasers… because without cheap diode green lasers, Microvision will not survive as a financially viable independent entity.

I’m sure Microvision’s technology and IP portfolio would be of interest to some seasoned business entity with few hundred million dollars to burn.

Today’s stock price at $1.53, after having traded at $5.57 last year─ right after SHOWwx product launch, does not speak much for the current management of Microvision.

Anant Goel