Technology and Social Paradigm Shift ─ Laser Pico Projection to Change the Way We View our World

There is paradigm shift coming and the pico projector market is estimated to reach $9.32 billion by 2020; growing at a CAGR of 39.82% from 2014 to 2020.

[Note: Think of a Paradigm Shift as a change from one way of thinking to another. It's a revolution, a transformation, a sort of metamorphosis. It just does not happen, but rather it is driven by agents of change.]

I’m sure there will be many players in the pico projection "standalone" space... like 3M with LcoS, TI with DLP, and MicroVision with Laser Beam Scanning technologies.

However, no matter how you slice-it or dice-it, MicroVision has, in my opinion, no competition in the laser based “embedded” or “standalone” pico projection space... not TI… and certainly not 3M.

MicroVision has the potential of being the “Top Dog” and the “First Mover” in the global PicoP projection market…

When investing in technology, always look for the “killer app”—yes, the software program, piece of hardware, product improvement or whatever—that makes the product stand out.

Take Internet browsers for example. Now, for a while there it took everyone some time to figure out what exactly an Internet browser was. Today, many of us can’t imagine what life was like before we had Google. These days, if you need information on any topic under the sun, you simply “Google” it! What would we ever do without Google?

When looking to buy the latest tech stock, investors [you] need to scrutinize the product and the unique ability it offers to its users. Google is a great example of a “killer app” that revolutionized the Internet.

What’s MicroVision “Killer App”?

It’s the “Disruptive Technology”; that can bring about massive shifts in “technology paradigm” and “social paradigm”.  What makes MicroVision’s PicoP display engine technology as "Killer App" in simple terms?

1.  Always in-focus image that needs no adjustment when on the move or when moving to change the projected image size… due to inherent feature of laser projection.

2.  Longer projection periods per battery charge… by switching-off the laser light source during periods of dark picture segments.

3.  Cool to the touch and no waste heat generated… due to modulating lasers as light source.

4.  Large projected images [up to 250”] in widescreen aspect ratio of 16:9.

5.  High Definition 720P images at 32 lumen brightness… with pathways to high definition images at 50 lumen or more brightness in 2015.

6.  Dramatic cost reduction [with huge profit margin improvements] as the laser light technology has matured and economies of scale are achieved in 2015.  For example, synthetic green lasers [SGLs] were priced at around $120 each… whereas the diode green lasers [with higher light energy output and efficiency] are currently priced at less than $5 in quantities.

7.  Small physical size that starts out small and gets even smaller from one generation to the next. 

8.  Social Change from the way we share information now to the way it will be shared in the future.

The PicoP display engine can be embedded in hundreds of different products representing a huge market share for entire product line-up. It has the potential of adding billions of new dollars to MicroVision—expanding what I like to call the “halo effect” from the PicoP display engine to the rest of MicroVision product line of applications that are currently under development.

Yes, investing in technology can get complicated. Many advisers compare the stock price to the company’s earnings and cash flow, and then look at earnings growth trends and the company’s debt levels in comparison to its competitors. This is some in-depth analysis for the average investor!

Well, MicroVision has very little earnings and cash flow from current sales; so you have nothing to analyze. Consider yourself in good company: Billionaire Warren Buffet doesn’t invest in technology because he doesn’t understand the fundamentals of the business. That is why he has missed out on billions of dollars in potential profits from the likes of e-bay, Google and Apple. So, if you’re waiting for revenue and current cash flow from your MicroVision investment, there is none for all analytical purposes.

But that will change in the next 2 Qtrs: when the earnings report will show $8 million in licensing fee and $14.5 million in proprietary components order [and future royalties] from SONY… and increasing sales of technology development and licensing from 10 or so Consumer Electronics giants from US, Europe and Asia Pacific region.

When it comes to emerging technology from companies with small capitalization, don’t do what Warren Buffet does. Do your own DD and then take a small position in MicroVision for its emerging technology and huge profit potential in the next 3 to 5 years.

Is MicroVision ready for prime time and worthy of your investment dollars, consider this…

In three to five years from now in 2017, the stock could easily trade in the $100 to $400 range. 

No matter how you slice-it or dice-it, MicroVision has, in my opinion, no competition in the laser based “embedded” pico projection space... not TI… and certainly not 3M.

MicroVision’s PicoP display engine could also lead the “standalone” rat pack [with its Celluon PicoAir projector for example] because of the following...

• Small form factor that allows room to add additional built-in functionality. The competition starts-out big and can only get bigger.

• Power consumption will always be the differentiating factor. Two to three hours of use between battery charges is always more desirable than the ones that last an hour or less. Extra power pack(s) will make the MicroVision's PicoP projector at par with competition... but there is a high probability that the user will opt for longer run on batteries. How often do you remember scrambling for a power pack when you need one?

• “A wide angle view means that MicroVision PicoP projector can show a wider screen at closer distant!” This is a very important differentiation as compared to the “rest” in the market. With MicroVision PicoP projector you get…

“A wider image [60 inch from 5 feet away, for example] from a close distance… the image is brighter and sharper… colors are more vibrant… and the image is always in focus”.

• Laser based PicoP projectors will always have projected image in focus… regardless of the distance [from the screen] or mobility of the projector itself. Try focusing a projector [with DLP or LcoS] every time you move [with the projector] or change the distance from the screen to change the size of the image.

• MicroVision PicoP projector has better image quality [at 80,000 to 1 contrast ratio] and is sharper [per lumen] as compared to other projectors using “diffused” light sources the competition is using.  The use of diffused light source, like LEDs or lamps, causes the "torch light" effect... meaning the image is brighter in the center with darker outside.

• MicroVision’s PicoP projectors can go from 12inch to 250inch image size. None of the competitor has [so far] been able to match what MicroVision is offering. We will soon find out what [else] MicroVision has to offer when Celluon PicoAir [currently at 32 lumen] comes out with 50 lumen and higher brightness.

Celluon’s PicoAir [using MicroVision PicoP display engine] was launched this January and is currently shipping… and is getting raving reviews. Competition, like 3M and TI, have their LED based Pico projectors on the market for over four years… but they are not selling too well… and their prices keep coming down almost every month.

According to the new market research report "Pico Projector Market - Forecasts to 2020", the pico projector market is estimated to reach $9.32 billion by 2020; growing at a CAGR of 39.82% from 2014 to 2020.

However, the laser based PicoP projector market is expected to grow at must faster rate CAGR of 56.95% and take-off in 2014.

Here’s an excerpt from the independent study…

“The technology market entails three major types including Digital Light Processing (DLP), Liquid Crystal on Silicon (LCOS), and Laser Beam Steering (LBS). Currently, the majority of pico projectors are being developed based on DLP technology, however it has been estimated that in future, pico projectors would be mostly based on laser technology. DLP accounted for a market share of 56.90% in 2014 and is expected to grow at a CAGR of 31.53% between 2014 and 2020. Laser Beam Steering (LBS) is expected to grow at a CAGR of 56.95% between 2014 and 2020.”

Competition is good and will help with faster adoption of the Pico projector by the billion plus unit market. To be a huge [financial] success, MicroVision needs only a small percentage of the overall market that finally adopts the technology.

My money is “still” on MicroVision. However, I am keeping an eye on the competition… including TI, 3M and Syndiant.

For an in-depth report on “Opportunity of a Lifetime”, please click here…

Next Paradigm Shift: The Internet Would Democratize Broadcasting and Content Delivery

Over the last few years, there has been such a confluence of technologies in so many different sectors that it is about to bring several paradigm shifts… and in the process shape our lives and also open-up new frontiers to commercial opportunities.

There is a long list of paradigm shifts taking place right under our noses while we work, play or snooze. As the title suggests, here we will just focus on: How Internet Would Democratize Broadcasting and Content Delivery.

How attractive does a new technology have to be to warrant adoption and utilization?

It all started with YouTube and the beginning of ‘broadcast your self” phenomenon in the year 2005.

YouTube is free; and is a video-sharing website on which users can upload, share, and view videos. YouTube uses Adobe Flash Video technology to display a wide variety of user-generated video content, including movie clips, TV clips, and music videos, as well as, amateur content such as video blogs and short original videos. In the early days, most all of the content on YouTube was uploaded by individuals, although there were some early adopter media corporations including CBS, BBC, VEVO and other organizations that offered some of their material via the site, as part of the YouTube partnership program.

Unregistered users can watch the videos, while registered users are permitted to upload an unlimited number of videos. Videos that are considered to contain potentially offensive content are available only to registered users 18 and older.

Before the launch of YouTube, there were only a few easy methods available for ordinary computer users who wanted to post videos online. However, with its simple interface, YouTube made it possible for anyone with an Internet connection to post a video that a worldwide audience could watch within a few minutes. The wide range of topics covered by YouTube has turned video sharing into one of the fastest growing and most important part of Internet culture.

Follow the Eyeballs

Consumer demand for service providers to deliver content to any device, at any time and in any location is growing more prevalent each year. Consumers are gaining additional control over how they access content, whether it’s through personal computers, mobile devices or set-top boxes… challenging service providers’ traditional walled living room offerings and in the process threatening their position in the content delivery value chain.

“All service providers need to do is follow the eyeballs,” said Stef van der Ziel, Jet-Stream CEO. “Thanks to the Internet, consumers are revolutionizing the way they access content, and content owners and advertisers are following their lead. Service providers don’t want to be left behind; they want a portion of the content distribution opportunity.”

To do this, service providers must evolve from triple play services─ offering phone, Internet and video, to ‘open play’ platforms that deliver content to all four screens─ PC, Mobile client, TV and the pico projector.

Technology: Deployment of the “Four Screens CDN”

Anyone with commercial interests in streaming media services and CDN [content delivery network] technologies; and that has ever produced a video for YouTube or a web cast, will tell you that the Internet would democratize broadcasting. If a college dropout with heavy interest in media and technology could broadcast video globally on YouTube, then anyone would be able to do so. In a matter of time, all content would be distributed via the web to PC’s, mobile clients, and TV’s and pico projectors. The signs are all around you… just look at the latest products and services offered by Apple, Amazon, NetFlix, Hulu, ESPN and so on.

Years ago, I envisioned a future where consumers and companies would not be locked in walled living rooms… and content owners could distribute content directly to consumers. It was just a matter of time, people and companies [like Apple, NetFlix, Hulu, ESPN] would use the Internet to share content. I also foresaw that the Internet could not handle the sheer volumes of content. There would be a huge need for smart distribution technologies. Telcos will have to follow the eyeballs and embrace Internet based content and consumption on all four screens─ the PC, mobile client, TV, and pico projector by deploying intelligent CDNs.

The Open Play

Enormous amount of resources will be spent to scale the web for professional and massive content delivery; to democratize broadcasting, to disrupt the traditional cable and broadcasting industry and to break open this market so anyone could create, distribute and consume content, anywhere, without borders.

Continued Market Growth Ahead for CDNs

In 2008, the entire global market for video delivery services was only $400 million, according to Frost & Sullivan. That’s a really small number when compared to the overall CDN market size or many of the other segments of the infrastructure market. It shows that the CDN market still has a long way to go and that many opportunities still exist.

Most content owners still don’t make any money with their content, but just imagine what the CDN market will look like when they do. CDNs will be even more crucial down the road as content owners rely on them to help them generate revenue. In the next few years, as more devices [like Apple TV, iPhone, iPad] come to the market, consumers will begin to adopt them in large numbers—then the market will change.

While many ask when this is going to happen and what the next tipping point will be that gives CDNs the next surge of traffic, you have to remember that it does not happen overnight. Many use the example of YouTube and 2007 as being the year that the CDN market really exploded. But what most people didn’t see, or don’t know about, is all the work that was taking place in the CDN space leading up to that event in the years before. Companies worked very hard from 2004 to 2007—none of that perceived growth in 2007 truly happened overnight.

Today, we’re building the market size for CDNs every single day. Even with the poor economy, you don’t see less content online… you see more. You don’t see poorer quality video… you see HD. You don’t see fewer devices… you see more platforms than ever before. This is what we’re building on. So when it seems like there is a sudden surge in the CDN business years from now, with or without Telco’s, remember that it did not happen overnight.

Tough times for many of the vendors in the CDN space may be coming to an end. All industries need corrections, and the CDN industry is no different. The bottom line is that the CDN industry has never been stronger, has never been more needed, and will only continue to evolve to help do more than just deliver some bits from point A to point B.

In the future, private CDNs─ like the one rumored at Apple, will flourish. Streaming media analyst Dan Rayburn reported last year that Apple was planning to bring some of its CDN capabilities in-house. “Folks I have spoken to inside Apple told me that once the new data center is completed, Apple plans to have a more active role in doing their own content delivery,” Rayburn wrote, noting a precedent. “While its way too early to speculate what kind of content Apple will deliver and in what volume, this strategy is nearly identical to what we’ve seen Microsoft do over the years.”

In closing, I must re-state that most CDNs will become profitable, some will be worth acquiring, and many content owners will be willing to pay more for a service that makes them money. We’re all waiting for this time to come. And while it won’t come overnight, I think it will happen sooner than many people may realize.

Anant Goel

Microvision: Growth Stock with 50,000% Profit Potential

I have always believed investing in companies that ride the wave of change or bring about the paradigm shift; with an eye on the long term growth prospects of the company.

In the last 30 odd years that I have been investing, I have had my share of good fortune and misfortune. However, what’s important is the fact that I managed to secure my financial future and live today to talk about my strategy of investing in companies that ride the wave of change or bring about a paradigm shift. Some of these companies─ like Intel, Dell, Qualcomm, and Cisco─ have grown to be huge enterprises and have made their early investors over 10,000% or more since their inception.

A while back I wrote a post about my 14,000% profit experience with Intel during its growth phase from early 80’s to the end of Dot.com era in the year 2000. Here’s the link to that post…

http://mirro7.blogspot.com/2009/09/intel-i-made-over-14000-profit-since.html

I’m one of those old timers that invested in Intel during its early days as a company… in the early 80’s. I recall buying some shares for a total cost of $1,000 dollars. I had to liquidate all my position in Intel during the Dot Com bust of 2000… around May of that year. However, it was not all that bad, because I managed to sell pretty close to the all time high and I remember bragging about my good fortune and fortitude to have stayed the course to make over 14,000% profit… for a net gain of over $140,000 dollars including dividends and the stock splits.

The past performers in my portfolio have served well. However, these companies like Intel, Dell, Qualcomm, Cisco, and Microsoft are past their hyper growth phase and are now too big and are just slow earnings growth vehicles. No disrespect to these fine companies… it’s just that they don’t fit the “hyper growth” company model any more.

One of my stocks holding now, besides an options income portfolio, is Microvision. I believe Microvision has the makings of the next 50,000% profit producer in the next 5 years or so.

Here’s why…

On Wall Street, you often hear terms like “top dog” or “first mover” in the context of a growth stock presentation to institutional clients. It’s quite interesting really…

A "top dog" is a company that dominates its industry... and a "first mover" is a company with a technology or product so revolutionary that it disrupts an existing industry and creates an entirely new one.

On the rare occasion that you find a company that is both─ both a top dog and a first mover ─ the chances are pretty good that you've found your next big winner...

Just think of eBay in the online auction market... Amazon in the online retail market... Netflix in the DVD-rental market… and Cisco in the router market… etc.

These companies redefined the way business was done, launched entirely new industries, and continue to dominate those industries to this day. And you don't need me to tell you how handsomely they've rewarded shareholders along the way.

In order to find companies that will deliver truly life-changing investment returns, you have to find growth companies early in their life cycle and truly believe that they are indeed the ones to ride the wave of change or bring about the paradigm shift… with potential of sustained long term growth.

Before we talk about Microvision as the growth company of the future with a 50,000% profit potential, let’s first consider…

Is now really a good time to be buying growth stocks?

The fact is; it takes guts to make money in this market.

But here's some good news…

For one thing, our current economic conditions bear a striking similarity to the economic downturn of the early 1990s. And Morningstar reports that during that recession, “growth” stocks more than doubled the return of "value" stocks.

For another thing, "growth” stocks can excel even if the broad market continues to stumble. In fact, the analysts expect better profit prospects for growth stocks than for value stocks.

Money for nothing...
We have to be realistic in our expectations when searching or investing in growth companies. The purpose of looking at the great companies listed above is not to show that growth investing is an all-win situation. Far from it!

The purpose of the illustration is to demonstrate how well great companies perform over a long period. If you can identify just one great company early, and then hold on for the long term, you can do pretty well for yourself.

Growth investing is highly volatile, and it will fray the nerves of those individuals with a low risk tolerance. Having said that, all investors should devote a portion of their portfolios to growth stocks. For those traveling in the fast lane, an allocation of 30% of their portfolios might make sense. More conservative types should allocate at least 10% in order to provide a little juice for their investments. I'm somewhere in between, so I devote about 20% of my portfolio to growth.

Microvision: Growth Stock with 50,000% Profit Potential

I believe Microvision has the makings of the next 50,000% profit producer in the next 5 years or so.

In order to become a very successful, profitable and huge company [in terms of market capitalization] you need the following pre-requisites:

Management: with expertise, vision, support network, past record, communicative and persuasive skills and a will to succeed.

In my opinion, we have the best possible management with all the pre-requisite attributes necessary for managing Microvision at this stage of the company’s growth. Here’s a link for your review…

http://www.microvision.com/about_microvision/team.html

Financially Sound: with money to support on-going operations, R&D expenditures, product development and commercialization.

According to the latest annual report for period ending December 2009, Microvision had $45.7 million in cash and short term cash instruments. Looking at the financials, the company is burning about $11 million per Qtr. At this rate, the company has about 4 Qtr worth of cash… assuming no additional revenue from product sales or contract payments.

Since we already have a SHOWwx product lunched in the US, Europe and the Asia Pacific region… I would venture to say that most R&D expenses have already been incurred [almost $300 million to date] and net profit from sales could reduce the cash burn by 3-4 million dollars per Qtr. That would stretch the available cash reserves to 7 Qtr or so. It’s ironic, but the investors of the past have funded this massive R&D undertaking to-date. However, the current investors will reap the benefits and are assured the company has cash to fund the on-going operations, product development and embedded PDEs commercialization.

Here’re some links…
http://phx.corporate-ir.net/phoenix.zhtml?c=114723&p=irol-newsArticle&ID=1400178&highlight=

http://finance.yahoo.com/q/is?s=MVIS

Disruptive Technology: that can bring about massive shifts in “technology paradigm” and “social paradigm”. Each of the five products that Microvision is offering has the potential to cause massive paradigm shift in its own space of product applications.

Microvision’s core technology [PicoP Display Engine] is weaved into five product offerings and each of the product line has the potential of generating billions in revenue:

Vehicle Displays: for automobiles.
http://www.microvision.com/vehicle_displays/index.html

Wearable Displays: a see-through, high-resolution display platform that enables lightweight and fashionable eyewear displays for mobile devices. Microvision’s Color Eyewear platform allows mobile users to access their personal content and services while keeping their vision of the outside world free and clear, letting mobile users stay on the move.

http://www.microvision.com/wearable_displays/mobile.html

Pico Projector Displays: brings big screens to small devices. The Pico Projector or “PicoP Display Engine” can be embedded in mobile phones, laptop or similarly-sized mobile devices to enable upto 100” full color projection display [with DVD resolution] for applications such as streaming video, digital TV, high resolution photographs, and surfing the net.

Standalone Laser PicoP Projector SHOWwx:
http://www.microvision.com/pico_projector_displays/standalone.html

Embedded Unit:
http://www.microvision.com/pico_projector_displays/embedded.html

Applications Gallery:
http://www.microvision.com/pico_projector_displays/application_gallery.html

Military Displays: are used across various branches of the U.S. Military including the U.S. Army, and U.S. Army Reserve.
http://www.microvision.com/wearable_displays/military.html

Laser Bar Code Scanner: features a patent-pending, low-cost, shock-resistant, mechanical/magnetic laser scan engine.
http://www.microvision.com/barcode/index.html

Competitive Advantage: Microvision has over 115 U.S. Patents issued and 79 Patents pending to protect its intellectual property… giving it a huge competitive edge.

http://www.microvision.com/about_microvision/index.html

Technologically Feasible: Microvision has five different products in its portfolio. Each product has been demonstrated to be technologically feasible… with some being offered commercially.

PicoP Display Engine technology is based on the proven and mature silicon MEMS laser scanning mirror technology… as demonstrated by their commercially marketed “ROV” bar code scanner system.

http://www.microvision.com/technology/index.html
http://www.microvision.com/barcode/rov.html

The company recently launched the world’s first laser based PicoP projector SHOWwx in the US in March of 2010.

http://www.microvision.com/showwx/

Microvision has teamed-up with Asia Optical, a global leader in optical component solutions and contract manufacturing, speaks highly of the technological feasibility of the PicoP product. This collaboration focuses on leveraging Asia Optical experience in high-volume design and manufacturing to create a compact, manufacture able and affordable PicoP Display Engine product for Microvision customers. Ultimately, it is expected that PicoP Display Engine will be incorporated into a variety of applications and products in the automotive and mobile consumer electronic products.

The development agreement with Vodafone and Motorola is big for the following reasons…

The deal with the top tier cell-phone companies [Vodafone and Motorola] validates the Microvision technology and its business model.

The deal with Vodafone and Motorola are not exclusive [at this stage] and possibly is the beginning of a relationship that can easily grow into these companies taking equity interest in MVIS… or a possible buyout in the future. As the company [MVIS] has indicated, they are talking to several other large mobile phone and consumer electronics firms.

The top tier cell-phone companies [like Vodafone and Motorola] see value in announcing the relationship with Microvision at this stage of the product development… meaning that the product is within the spec for an embedded device for the cell-phones… and on schedule for early introduction in 2011.

Microvision launched the standalone PicoP projector SHOWwx in the US in March of 2010 and is on schedule to deliver the embedded unit for commercial production in early 2011.

Market Size: The market for PicoP Display Engine is huge. The potential markets are automobiles, mobile phones, smartphones, laptops, PDAs, iPods, iPhones, Pads, digital cameras, camcorders, personal mobile TVs, and the fashion eyewear.

Here are some world-wide statistics...
New autos: sales for 2007 … 49 million units
http://www.metrics2.com/blog/2006/12/28/world_auto_sales_flat_in_2007_china_becomes_no3_re.html

New Mobile Phone Sales: for 2007… 1.15 billion units
http://www.itbusinessedge.com/item/?ci=29702

New Laptop Sales: for 2007 … 207 million units
http://www.pcworld.com/article/id,132861-pg,1/article.html

New “PDA’s, iPods, iPhones, Digital Cameras and Camcorders”… over 300 million units

New Eyewear Sale: for 2008… 1 billion units

Personal Mobile TV/Projectors… new market opens up with potential 1 billion units
http://www.microvision.com/pico_projector_displays/application_gallery.html

Technology and Business Partnerships: Microvision has partnered with the biggest [financially], the most respected [for over 100 years] and the best in the business to design and manufacture its PicoP Display Engine for the automotive and consumer electronic markets.

Now what we need is a few more commercial business partners and OEM agreements for the PicoP Display Engine and Wearable Display product line. I am sure it will happen soon and when it does happen the MVIS stock will run up the charts as we have never seen before.

Microvision has the potential of being the “Top Dog” and the “First Mover” in the global PicoP projection market…

When investing in technology, always look for the “killer app”—yes, the software program, piece of hardware, product improvement or whatever—that makes the product stand out.

Take Internet browsers for example. Now, for a while there it took everyone some time to figure out what exactly an Internet browser was. Today, many of us can’t imagine what life was like before we had Google. These days, if you need information on any topic under the sun, you simply “Google” it! What would we ever do without Google?

When looking to buy the latest tech stock, investors [you] need to scrutinize the product and the unique ability it offers to its users. Google is a great example of a “killer app” that revolutionized the Internet.

So what’s Microvision’s “killer app”?

It’s the “Disruptive Technology”; that can bring about massive shifts in “technology paradigm” and “social paradigm”. Each of the five products that Microvision is offering has the potential to cause massive paradigm shift in its own space of product applications.

What makes Microvision’s PicoP Display Engine technology as "Killer app" in simple terms?

1. Always in-focus image that needs no adjustment when on the move or when moving to change the projected image size… due to inherent feature of laser projection.

2. Longer projection periods per battery charge… by switching-off the laser light source during periods of dark picture segments.

3. Cool to the touch and no waste heat generated… due to modulating lasers as light source.

4. Large projected images [up to 100”] in widescreen aspect ratio of 16:9.

5. High resolution image [848x480] at 10 lumen brightness… with pathways to high definition images at 20 lumens or more brightness.

6. Dramatic cost reduction [with huge profit margin improvements] as the laser light technology matures and economies of scale are achieved.

7. Small physical size that starts out small and gets even smaller from one generation to the next.

The PicoP Display Engine can be embedded in hundreds of different products representing a huge market share for entire product line-up. It has the potential of adding billions of new dollars to Microvision—expanding what I like to call the “halo effect” from the PDE to the rest of Microvision product line of applications that are currently under development.

Yes, investing in technology can get complicated. Many advisors compare the stock price to the company’s earnings and cash flow, and then look at earnings growth trends and the company’s debt levels in comparison to its competitors. This is some in-depth analysis for the average investor!

Well, Microvision has very little earnings and cash flow from current sales; so you have nothing to analyze. Consider yourself in good company: Billionaire Warren Buffet doesn’t invest in technology because he doesn’t understand the fundamentals of the business. That is why he has missed out on billions of dollars in potential profits from the likes of e-bay, Google and Apple. So, if you’re waiting for revenue and current cash flow from your Microvision investment, there is none for all analytical purposes.

But that will change in the next Qtr when the earnings report will show increasing sales of SHOWwx projector from the US, Europe and Asia Pacific region.

When it comes to emerging technology from companies with small capitalization, don’t do what Warren Buffet does. Do your own DD and then take a small position in Microvision for its emerging technology and huge profit potential in the next 5 years.

Is Microvision ready for prime time SHOWwx time and worthy of your investment dollars, consider this…

Five years from now in 2014, the stock could easily trade in the $300 to $500 range.

Here’s an educated projection…

• Worldwide Market Size: 2 billion units [cell phones, laptops, smartphones, iPods, iPhones, iPads, camcorders, digital cameras, gaming devices, and mobile TV/Projectors etc.]

• Worldwide Market Size: 1 billion units [wearable see thru displays]

• Market Adoption Rate: 10%... 300 million units

• Microvision Market share: 15% of 300 million units… 45 million units

• OEM price: $90 per PicoP Display Engine

• Revenue: $4 billion

• Net Profit Margin: 40%

• Net Profit: $1.6 billion

• EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization: $1.5 billion [with operating expenses at $100 million]

• Interest Expense: $0 million

• Interest Income: $20 million

• Tax: $220million

• Depreciation: non cash and very small

• Amortization: non cash and very small

• Net Operating Income: $1.3 billion

• Earning Per Share: $13 on a fully diluted basis [100 million shares]

• Price Earning Ratio: 30 for a hyper growth company

• Price Per Share: $390 per share

In my book, the “Risk” is insignificant [may be 2% per year interest in treasury bills as the lost opportunity] as compared to the potential of making over 100 times your money in the next year 4 to 5 years.

Anant Goel
http://www.wealthbyoptions.com/

Microvision: Announces March 2010 Launch of Laser Projector SHOWwx in the US Market

Microvision CEO Alex Tokman announced March 2010 as the launch date for its laser based PicoP projector SHOWwx in to the US market. He also indicated that Microvision will sell them from its own corporate website rather than collaborate with an OEM at this time.

You can watch this interview of January 7th at the following link…
http://www.microvision.com/displayground/

Microvision had officially launched SHOWwx into the Asia/Pacific region in September of 2009 followed by Europe /Spain soon thereafter. As we all know, the green laser supply and its price has been the major issue all along and it made sense that the small available quantities be introduced in relatively smaller markets… especially in those regions of the world where Microvision can fetch the maximum pricing leverage due to weak dollar.

As for the US market, it is huge and is also the home to thousands of Microvision’s VIP members. In other words, Microvision has a very large captive market for its initial production of SHOWwx using green lasers from Corning and Osram. Corning was able to produce very limited quantities of green lasers in 2009… but with Osram coming on board in February of this year, the green laser supply should improve dramatically.

Having said that, the next question that begs answering is the reasons for Microvision selling the SHOWwx into the US market on its own rather than through an OEM?

Here’re some thoughts to ponder…

Years ago Microvision decided to focus on the lasers as the source of light for their PicoP Projectors. By doing so the management embarked on a very complex project that involved a myriad of challenges, issues, risks and problems.

When a problem is fearsomely complex, the best thing you can do is take Thoreau’s advice: “Simplify, simplify, simplify.” At the same time, though, one should remain aware of Einstein’s advice: “Things should be made as simple as possible, but not simpler.”

It is a reasonable simplification, to reduce all of the big-picture markets for PicoP projectors to the development and marketing of PDE [PicoP Display Engine] to the OEMs, and let the OEMs add frills [and complexity] to arrive at the final consumer product. However, there may be currently an OEM acceptance issue with that approach due to:

• The lack of interest [or vision] on the part of OEMs to embrace the Microvision’s PicoP Display Engine at this stage;

• The potential fear of cannibalization of the DLP based lamp/LED projectors currently sold by the major OEMs;

• The politics of the market place where the competition [like 3M and Texas Instruments] have deeper pockets and well entrenched relationships.

Lack of vision can destroy [albeit slowly] even the mightiest of the companies, for example:

Kodak could have stayed king of the imaging hill, but they chose to ignore digital as a mere fad.

Polaroid went bankrupt and it is widely believed to be the result of the failure of its senior management to anticipate the effect of digital cameras on its film business.

Boeing allowed a labor strike to deprive it of the last good year it will probably enjoy for some time to come.

And poor old Ford may actually have a tough-minded visionary at the helm, but it is an auto manufacturer in a year when that is simply the wrong business to be in.

Can you imagine the fate of the supply chain companies associated with any of the above dinosaurs… well, may be not those of Boeing?

So, any company [like Microvision] that is waiting on the major OEMs [that lack vision] for its market development [and survival] is in it-self lacking vision… by not introducing consumer product(s) that are strategically aligned to the targeted market. Meaning the target market, at this stage, being the “stand alone accessory” PicoP Projector SHOWwx?

I may be wrong, but I get the feeling that Microvision management is not waiting around for the OEMs to make their move; and is approaching the US market for stand alone accessory PicoP projector SHOWwx on its own.

That’s an excellent move considering the relative ease of developing [and servicing] the US market and the pricing advantage of selling directly to consumers at much higher net margins.

There are, however, some considerations that must be addressed seriously before embarking on such a journey. I’m sure Microvision has addressed these at great length and has arrived at its marketing plan for the US. However, we are not privy to Microvision plans so it’s fair to discuss them here in a tone as if something that should be addressed.

Create a 360-degree experience for the consumer:

The PicoP brands [stand alone or embedded] need to match the right product to the right consumers and then connect with them meaningfully at every point of contact. The "360-degree experience" includes everything from packaging, design, and marketing, distribution to after-market support… including programs to help customers discover product benefits, end-of life recycling programs, and user support executed with the care of a concierge service, rather than with the complication and delay of an overwrought bureaucracy.

I wish there was another example besides Apple to demonstrate a successful 360-degree experience, but Apple nails it every time. They do not try to be everything to everybody. Packaging is elegant. The product is beautifully designed. Set-up is simple. Support is available… with room for some improvement here. Messaging is consistent and clear at every touch point.

Pick the right distribution channel:

Market research has revealed that consumers are overwhelmed and confused at retail stores like Circuit City… no doubt a contributing factor in its recent bankruptcy filing. People they tracked on "shop-along" research trips found it impossible to discern the meaningful difference between, say, a $40 mouse and a $70 one, let alone penetrate the chaos that is the flat-screen TV section. Navigating the many dozens of options marketed with buzzwords like "plasma," "digital," or "720p LCD" was daunting, and many potential customers left the store without making a purchase. So the industry can add "loss of sale" to their return losses as well.

Research shows that shoppers frequently visit manufacturer Web sites for information… but rarely make the purchase decision based solely on that information. They used third party sources such as CNET, customer reviews on Amazon or the advice of their peers before making the buying decision. It's no surprise, then, that there is little-to-no brand loyalty. Except, of course, for Apple who has succeeded in translating geek-speak, like "120GB," to terms anyone can understand, like "30,000 songs."  The consumer electronics industry needs to stop talking tech-speak and start speaking in terms that mean something to the rest of us consumers.

If Microvision is marketing the PicoP Display Engines to OEMs, its distribution channel choice is obviously the partnered OEMs. However, if Microvision is also considering the introduction of a stand alone accessory PicoP projector like SHOWwx on it own, it needs to seriously evaluate its choice for distribution channel(s) selected for a consumer product addressing the mass market. Each distribution channel has its unique pros and cons and requires an extensive study that is beyond the scope of this post. However, the most important features involve the optimization of the following desirables…

• Cash flow and margins… credit card sales from company [and affiliate] web sites provides advance cash payment [and better margins] as against 30-day delayed accounts receivables from distributors and retailers. As an Amazon drop-ship retailer the company can have the best of all scenarios… on-line retailing power and credibility of Amazon… customer reviews on Amazon… better margins for the company… advanced credit card payment to the company… control over customer service and support… and consistent and clear messaging to the mass consumers.

• Push marketing… company [and affiliate] web sites coupled with e-mail campaigning are much more effective in the introductory phase push marketing than distributors and retailers.

• Pull marketing… third party review sources [like CNET] and retailers [like Amazon] are much more effective in advance stage pull marketing than distributors and retailers.

• Customer support & service… distributors [like Ingram Micro] and retailers [like Circuit City] are not really known for the type of customer service and support that is conducive to customer loyalty or customer satisfaction. RMAs, re-stocking and re-selling is an expensive process due to mishandling and neglect.

• Consistent and clear messaging… company web site, affiliate web sites and retailer Amazon web site allow the company better control over consistent and clear messaging to the mass consumers.

Tell Your Customer the Truth…

If products do make it to the customer home, many don't make it past the out-of-box experience. Not everyone is an early adopter with an appetite (or tolerance) for splashing around a sea of tech-speak to deal with hours-long product set-up guided by confounding directions, little-to-no customer support, and lots and lots of wires.

Well, that’s all I could muster on a sunny afternoon… while we patiently wait for more announcements and answers about production quantities of green lasers and shipments of SHOWwx to current OEMs and the Mobile phone customer Vodafone.

I’m sure Microvision brass has the answers, and has its reasons for keeping quite on the subject.

Day to day it's hard to see where it will end, but I think we are going to be fine and at the end of the day the MVIS investor will come out whole.

Anant Goel
http://www.wealthbyoptions.com/

Microvision: “What’s Your Business Growth Strategy”?

From the looks of it, Microvision stock seems to have stabilized and margin call related selling has subsided after 6 days of trading below the $3 mark.

Have to agree with you, that it hasn't been a walk in the park investing in Microvision. But then again, good things come to those that have the patience, knowledge, analytical fortitude and the power of belief to stay the course.

When it comes to Microvision corporate management, you have to cut some slack to these folks. They have been managing so many tough technological innovations to come together; for PicoP to come this far and become a reality. A few more months will not break the corporate treasury [with over $50 million in cash] or put the company out of business. The pico projector market is huge and the race to market has just begun.

After listening to CEO Alex Tokman interview again, this is my reaction for whatever it is worth...

Microvision: What’s Your Business Growth Strategy?

Every business has to plan for growth and executives should make sure their growth plans are consistent with their dynamic business plan. A dynamic business plan is an updated version that is kept current to reflect the ever-changing business-operating environment. Especially in the technology and DOT.com businesses, where the product cycles are so short and consumer preferences are mostly dependent on the next hot product or service.

When it comes to growth plans, the two ends of the spectrum are, for example, should a company grow quickly and unprofitably, like Amazon and Hotmail [before it got acquired by Microsoft for $480 million], or slowly, with a careful eye on the bottom line, like Ben & Jerry's ice cream parlors? It all depends on what the competition is doing.

This report focuses on the challenges of growing a business and the importance of picking the right growth model that is consistent with your business plan and positions you for whatever your ultimate goal is. As the author sees it, there are three possible scenarios:

Number one: you want to be the gorilla of your industry in a hurry like Amazon.
Number two: you want to ramp-up your business fast and position for an acquisition like Hotmail.
Number three: you want to be a brick and mortar company producing steady profits like Ben & Jerry’s.

Regardless of what your business model is, the CEO and the CFO of the company need to formalize their business growth strategy and evangelize to the man in-charge of running the day-to-day operation of the business. Building a company is no small task? You've got one very important decision to make, because it affects everything else you do. No matter what else you do, you absolutely must figure out which camp you're in, and gear everything you do accordingly, or you're going to have a disaster on your hands.

THE DECISION MAKING PROCESS:
Whether to grow slowly, organically, and profitably, or whether to have a big bang with very fast growth with lots of capital spent in a hurry, that is the question?

The first model, popularly called "Get Big Fast" (a.k.a. "Land Grab"), requires you to raise a lot of capital, and work as quickly as possible to get big fast without concern for profitability. I'm going to call this the “Amazon”, because Jeff Bezos, the founder of Amazon, has practically become the celebrity spokes-model for Get Big Fast.

The second model is called "Hotmail for Sale or Fail". Please note that Hotmail, before its acquisition by Microsoft, is the subject of our discussion here. And as for the name of our model “Hotmail for Sale or Fail”, I just made it up to make the point. This model requires you to raise only a small amount of capital, position for acquisition, and work as quickly as possible to build momentum to show there is promise of getting big fast… without concern for profitability. I'm going to call this “Hotmail” model, because Hotmail fits this model very well.

The third model, organic growth model, is to start small, with limited goals, and slowly build a business over a long period of time. I'm going to call this “Ben & Jerry’s” model, because Ben & Jerry’s fit this model pretty well.

The worst thing you can do is fail to decide whether you're going to be a Ben and Jerry's company, or a Hotmail company, or an Amazon company.

IN SUMMARY:
If you have the capability to raise tons of money, and you're going into a market with no existing competition, have lock-in and network/viral effects, you better use the Amazon model, or you're going the way of Wordsworth.com, which started two years before Amazon, but nobody's ever heard of them. Or even worse, you're going to be a ghost site like MSN Auctions with virtually no chance of ever overcoming eBay.

If you don’t have the ability to raise tons of money, and you're going into a market with no existing competition, have lock-in and network/viral effects, you better use the Hotmail.com model. Or you're going the way of the 95% of Amazon copycats, with weak capitalization, that have landed hard on their thin ass-set and nobody's ever heard of them.

If you're going into an established market, getting big fast is a fabulous way of wasting tons of money, as did BarnesandNoble.com. Your best hope is to do something sustainable and profitable, so that you have years to slowly take over your competition. You should start in one area, offer competitive prices, differentiate your services or offer variety of choices to create your customer base by getting customers to switch over from established competitors.

In closing, we should ask CEO Alex Tokman: “Microvision: What’s Your Business Growth Strategy?”

Anant Goel

PS: This post is based on a management report titled “… Technologies Business Growth Strategy” published by the author [Anant Goel] for a multi-million dollar company that was recently sold to a multi-billion dollar public company.

Microvision: What’s Your Mass Consumer Product Strategy?

Finally, on September 30th, Microvision announced its first purchase order and shipment of its long waited PicoP projector… a consumer product named SHOWwx.

Late by a few months from the original─ self-imposed─ launch schedule, the final consumer product, all wrapped and tied, left the loading dock destined for the far away lands of Asia… the home of Microvision’s first Asian Marketing and Distribution partner.

Interestingly, some of you may have caught another tit bit of news from the October 2nd blog post, by Matt Nichols of Microvision, at the company’s official blog site The Displayland.

Yes, Virginia we have some European distribution also coming on board shortly…

Here’s what Matt Nichols said…

“This is what I can tell you. Our very first shipments have already gone to Asia, as we are currently focused on fulfilling the first orders and shipments through our recently announced Asian distribution partner. We’ve also announced that we’ve signed marketing & distribution agreements in Europe. We can’t tell you the specific details yet as our partners first want to manage their product launch communication plans. When the details do become public, if you live in the geographic areas that the first shipments are available you might be able to scoop up some… “

Here’s the link for those interested in reading the full post…

http://www.microvision.com/displayground/
[The one you want is titled… “Launch, ship…and ‘when can I get a SHOWwx?]

In summary, the purchase orders are in and the product is finally going out to land in the hands of consumers. And that raises the next question in our minds… the stakeholders [investors, partners, and consumers] of Microvision.

Microvision: What’s Your Consumer Product Strategy?

I’m sure Microvision has one in place and there is ample evidence of how well it has worked so far. The term “Consumer Product Strategy” may mean different things to each one of us and may even depend on who “devised” it who will “manage” it.  What’s important to the stakeholders, however, is what it means to the creator and the implementer… Microvision?

So, why not we just ask them in a polite and consultative manner?

We will just do that, and here we go…

Gentlemen:

Consumer Electronics (CE) companies in the US last year lost $14 billion in re-box, re-stock and re-sell the returned items eroding the industries ability to attract and the retain loyal customers. Quite a high price to pay… for a problem that has a solution.

In May 2008, The Wall Street Journal reported that 11%-20% of all electronics goods were returned. The top reason…

The products “didn’t meet expectations.”

This becomes especially distressing given the current decrease in spending on consumer electronics. Data from MasterCard Advisor’s retail service showed holiday sales for this sector plummeted 26% from 2007. To survive the market shifts long-term, CE companies like Microvision need to view this extraordinarily challenging period as an opportunity to innovate, to fix what is already considered broken, and revamp their business strategies… specially for introducing mass consumer products on a global basis. It’ll take a lot more than blanketing the media with clever ads.

In all probability, Microvision has a great mass consumer product marketing strategy… and is doing all the right things. However, as Microvision is not in the market with any of its PicoP products, it is not easy to gauge its mass consumer product strategy. Since the paint is still not dry, here are four recommendations to consider…

Know your customer in product design:
The problem at the heart of the industry today is that most CE companies still design for their original, early adopter geek audience. Tech geeks drove the development of the CE industry when it was new and there was a steep adoption curve. But, now that grade school students and hockey moms carry iPhones, consult their GPS for driving directions, and bank online, Microvision needs to do more than rely on consumer curiosity to stay alive. The digital lifestyle is no longer one-size-fits-all, and today’s impatient and fickle mass consumer expects more than the complicated, unsatisfying out-of-the box experiences that have become an industry norm lately.

Create a 360-degree experience for the consumer:
Your PicoP display brands [SHOWwx or embedded] need to match the right product to the right consumers and then connect with them meaningfully at every point of contact. The “360-degree experience” includes everything from packaging, design, and marketing, distribution to after-market support… including programs to help customers discover product benefits, end-of life recycling programs, and user support executed with the care of a concierge service, rather than with the complication and delay of an overwrought bureaucracy.

I wish there was another example besides Apple to demonstrate a successful 360-degree experience, but Apple nails it every time. They do not try to be everything to everybody. Packaging is elegant. The product is beautifully designed. Set-up is simple. Support is available… with room for some improvement here. Messaging is consistent and clear at every touch point.

Pick the right distribution channel:
Market research has revealed that consumers are overwhelmed and confused at retail stores like Circuit City… no doubt a contributing factor in its recent bankruptcy filing. People they tracked on “shop-along” research trips found it impossible to discern the meaningful difference between, say, a $40 mouse and a $70 one, let alone penetrate the chaos that is the flat-screen TV section. Navigating the many dozens of options marketed with buzzwords like “plasma,” “digital,” or “720p LCD” was daunting, and many potential customers left the store without making a purchase. So the industry can add “loss of sale” to their return losses as well.

Research shows that shoppers frequently visit manufacturer Web sites for information… but rarely make the purchase decision based solely on that information. They used third party sources such as CNET, customer reviews on Amazon or the advice of their peers before making the buying decision. It’s no surprise, then, that there is little-to-no brand loyalty. Except, of course, for Apple who has succeeded in translating geek-speak, like “120GB,” to terms anyone can understand, like “30,000 songs.” The CE industry needs to stop talking tech-speak and start speaking in terms that mean something to the rest of us consumers.

If Microvision is marketing the PicoP display engine to OEMs, its distribution channel choice is obviously the partnered OEMs. However, if Microvision is also considering the introduction of a Stand Alone accessory PicoP projector [SHOWwx] on its own, it needs to seriously evaluate its choice for distribution channel(s) selected… for the consumer product for the mass market. Each distribution channel has its unique pros and cons and requires an extensive study that is beyond the scope of this post. However, the most important features involve the optimization of the following desirables…

• Cash flow and margins… credit card sales from company [and affiliate] web sites provides advance cash payment [and better margins] as against 30-day delayed accounts receivables from distributors and retailers. As an Amazon drop-ship retailer the company can have the best of all scenarios…
• on-line retailing power and credibility of Amazon
• customer reviews on Amazon
• better margins for the company
• advanced credit card payment to the company
• control over customer service and support
• and consistent and clear messaging to the mass consumers.

• Push marketing… company [and affiliate] web sites─ coupled with e-mail campaigning─ is much more effective in the introductory phase push marketing than distributors and retailers. However, the distributors and retailers do give you the benefit of “baptized” by quick “immersion” effect.

• Pull marketing… third party review sources [like CNET] and retailers [like Amazon] are much more effective in advance stage pull marketing than distributors and retailers.

• Customer support & service… distributors [like Ingram Micro] and retailers [like Circuit City] are not really known for the type of customer service and support that is conducive to customer loyalty or customer satisfaction. RMAs, re-stocking and re-selling is an expensive process due to mishandling and neglect.

• Consistent and clear messaging… company web site(s), company direct marketing, affiliate web sites and retailer Amazon web site allow the company better control over consistent and clear messaging to the mass consumers.

Tell Your Customer the Truth:
If your products do make it to the customer home, many don’t make it past the out-of-box experience. Not everyone is an early adopter with an appetite (or tolerance) for splashing around a sea of tech-speak to deal with hours-long product set-up guided by confounding directions, little-to-no customer support, and lots and lots of wires.

The Magellan GPS navigation system, for example, begins with a jumble of parts. Setup requires about half a day. Mac users learn late in the process that setup requires a PC. Meanwhile, the “Roomba” robot cleaner packaging promises it will “clean routinely so you don’t have to.” The Roomba itself, however, requires cleaning and maintenance after each use, making it more suitable for the gadget freaks who love to endlessly tweak their technology than the suburban housewife to whom it is marketed, who’s looking for hassle-free cleaning convenience.

"You must clearly communicate what your products do, what they are all about and who they are intended for."

Well, that’s all she wrote today.

I’ll get back to you as soon as I realize that you are still awake or I have missed any more pointers.

Anant Goel
http://www.wealthbyoptions.com/