News: 💡VUZI is Today’s Bright Idea💡

Thursday, April 27, 2023

💡VUZI is Today’s Bright Idea💡

*Sponsored by Lifewater Media. Please see disclosures below

Good morning!

Earnings season is in full swing right now, and if you are in the "bearish" camp, things aren't going so great for you. 🐻

Companies continue to prove resilient with a majority beating their earnings estimates, so far. I think things are looking great for the market right now, and I am continuing to bet on things moving higher.

Today, I have a brand new idea that I haven't shared anywhere else yet.

The company is Vuzix Corp (Nasdaq: VUZI)

I think right now is an incredible time to take a deep look into this stock, it is one of the better opportunities I have come across in a while.

If you've been trading smaller stocks for a while, you have probably come across this stock in the past.

VUZI is one of the more active, biggest-moving small-cap stocks I see out there on a regular basis. I see this stock pop up on different scanners I am focused on quite often.

Right now, I think there is a great technical reason to take a look at VUZI.

My custom scanner is showing a perfect crossover pattern on multiple timeframes right now. This has been an early signal of a reversal in the past.

One of the biggest catalysts for the stock I see right now is the fact VUZI is rapidly growing sales, even in a weak overall environment.

Just check out what VUZI CEO, Paul Travers, had to say a few days ago…

We believe our first quarter represents a harbinger of the year's strength with preliminary revenue in excess of $4 million, as recently announced, rising more than 65% year-over-year versus 2022's Q1 level, primarily on record sales of smart glasses as a result of enterprise customer growth, adoption and deeper rollouts in the period. (1)

Any company growing like that should definitely be on your radar.

If you're looking at VUZI right now, you're in great company!

VUZI has HUGE institutional interest right now. Just check out the all-star roster of big funds that own the stock (2)…

See who is top of the list? None other than Cathie Wood and her massive ARK funds.

Her funds own a whopping 10% of VUZI. You really can't get much better of an endorsement there.

Not only is her fund a huge owner of the stock, but this chart shows her average cost around $14, which is about 270% higher than current levels.

One thing I have seen a lot over the years is that ARK likes to "defend" their positions. They have a huge warchest of capital and they are well know for averaging down on their trades. It wouldn't surprise me at all to see Cathie step up and snatch up more shares to lower her cost on this.

I think a big date to keep an eye on is May 9th, which is VUZI's next scheduled earnings report. If they put up some big numbers, I expect to see fireworks and it makes sense to me that some of their big institutional holders would begin to add more at these depressed levels.

And why wouldn't they? Analysts who cover VUZI love it.

This chart from TipRanks shows the average price target is $11.50, which is over 200% higher than current levels (6).

I hope you're keeping up with me, because I'm just getting started on reasons why I love VUZI here!

We just saw that big funds are major holders, but what about insiders?

Well, check this out from TipRanks again…

I don't see any insider selling in the last few months. All I see are insider buys right now. How's that for confidence from the top?

Now, get ready for this. I think this could be one of the most important things to consider right now – short interest.

As you probably already know, stocks with a high level of short interest can be like a powder keg waiting to go off. 🧨

The reason is that when someone short sells (shorts) a stock, they have to buy it back eventually. All of that pent up demand can fuel explosive rallies, if short sellers start to get nervous and start attempt to buy back large amounts of stock in a short period of time.

The "Reddit Apes" are notorious for targeting stocks with a high short interest rate and trying to "squeeze the shorts".

What's a "high short interest rate? Usually around 10% is pretty high. Guess where VUZI sits right now?...

Yep, a massive 28% reported short interest for little old VUZI.

Good luck to the shorts at these levels, you're gonna need it!

As the CEO just said, a big driver of sales lately has been from "enterprise clients." Well, if this Twitter post is any indicator, you can't get much a bigger potential client than Amazon!

VUZI's "augmented reality" (AR) glasses are truly next-generation stuff. They are an industry leader in this emerging space and the applications cover so many different sectors – healthcare, manufacturing, warehousing, and hopefully even home use for gaming and who knows what else in the future!

No one knows this like Cathie Wood and ARK. They are trying to predict the next big thing and what could be disruptive technologies. That is why they are such big owners of VUZI right now.

ARK made this graphic to show how big they estimate the potential market for AR looks – it is insanely big! (9)

I really could go on and on about VUZI. I think it is a very special opportunity right now. Don't let this one get away from you without looking deeper into it.

And remember, just because I love a stock doesn't mean you need to. It is always important that you understand the risks and possible rewards of getting involved with a stock. A great place to start would be to read all you can from the company website. I think you will love what you see!

To Your Success,