Vuzix Corp. (OTCBB:VUZI) Retreats, Depressed After Public Offering
In its latest bout of higher trading, Vuzix Corp. (OTCBB:VUZI) is being tentative, retreating a bit on selling after Monday’s strong opening. On dollar volumes a bit above $590,000, the ticker slid down to $2.16, losing about 4% on the day. So far, VUZI is mostly unknown, a company relying on products rather then hype, and has been working toward revving up its background financials to qualify for a NASDAQ uplisting. 
So far, VUZI achieved the following: 
- 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 loss:$936 thousand
Time will tell if the virtual reality hardware and software would take off enough to compete as a consumer product. And for the last time, VUZI was promoted in October 2011. Now, at $2.16, it is mostly up to investors to decide if the ticker is worth the attention for its long-term potential. Only recently VUZI fell from heights above $4, so the current price levels may hold some appeal as a bottom-out bargain price.
But the recent reason for a move from $4 to the current lower prices is a share and warrants offering at exactly $2 that caused massive selling at the end of last month. And now there are 3.5 million warrants with an exercise price of $2.25, along with the 3.5 million new shares offered. All of this may keep VUZI depressed for a while through sales.
Let’s look at other tickers that were pushed down from the high horse, and how they fare at the new, lower price. InSite Vision, Inc. (OTCMKTS:INSV) slid down after negative drug release news, slashed in half from 34 to 17 cents. Afterwards, it has been a minor recovery to 22 cents.
But for VUZI, there may be pressure from the warrants and the newly offered shares. Still, if VUZI is serious about the NASDAQ prospects, it may avoid paying promoters to get ahead, and even if there is a promotion, it could be a record-boosting operation, undertaken by the pumpers themselves. In case you still like this company, it is best to invest only funds you can afford to lose in whole or in part.
