Vuzix Corp. (OTCBB:VUZI) Gaps Down, Dropping Hard On Big Volumes
Vuzix Corp. (OTCBB:VUZI) hasn’t been able to attract investor interest in quite a while and their average volume of traded stock is at 40 thousand. Even the high price that their stock had couldn’t make up for these low volumes and they rearly breached the $50 thousand barrier in trade value, having sessions with as low as $3.7 thousand.
The company started trading back in the beginning of 2011 and we can’t say that their chart is a sight for sore eyes. In fact it can make your eyes sore if you are an investor looking for a long-term play. In their history of trading they have been pumped by Stock Guru, but that was way back in 2011 and we are willing to give them some credit for not continuing this practice.
We might say that they started off the year rather good with prices of around $5, but that was followed by a disastrous drop that brought their price per share below $1.50 in the end of April and the beginning of May. It seems that they relied on optimistic press releases and regained some of their former value quite quickly after the drop.
What followed, however, was a downslide that escalated yesterday with a massive amount of shares being dumped, a thing that cost them 55% of their stock’s value in the end of the day. This is due to the 8-K they filed with the SEC about their option granting underwriters to purchase a total of 4.25 million common shares and warants at a public offering price of $2 per share and $0.0001 per warrant, respectively.
Quite a lot shares switched hands yesterday as the company opened at $2 per share and heavy trading commenced in the early minutes. In the end of the day the total amount of traded shares was a precedent in VUZI‘s history of trading with a total volume of 1.1 million making the trade value come at $2.3 million. With the amount that was offered and the current price of the company’s stock we might be witnessing a pump campaign very soon.
The company has a market cap of $13.5 million, but let’s take a look at what you will get for that amount of money.
- cash: $532 thousand
- total current assets: $1.7 million
- total current liabilities: $6.59 million
- total liabilities: $1.1 million
- total sales: $739 thousand
- net lss: $936 thousand
Even though they have a decent amount in cash and a fair intake from sales we can see that they haven’t improved much from their previous reports. Given the current price you might think of a buy in the low as a short-term investment, but there is absolutely nothing pointing out that they will ever recover their previous price without getting pumped, so be sure to do your due diligence and weigh out all the risks before you make an investment choice.
On the other hand, probably the biggest winner in yesterday’s session was Alternative Energy Partners, Inc. (OTCBB:AEGY), who gained 146%, closing at $0.0032. Not so fortunate were Affymax, Inc. (OTCMKTS:AFFY), who didn’t move much and managed to close the day at $1.73, but still generated a high trade value that came at $5.3 million.
