Kopin Corp. (NasdaqGS: KOPN)
Imagine: Wearable Technology!
I hate fad stocks. You know, those like Facebook, Google, Amazon and Apple. (What ever happened to any of those?)
Okay – wearable technology is a fad. Let me say this, it is a fad for second tier companies. It is not a fad for those companies that can really do something and get it out.
Let’s start with a comment from the President and Chief Executive Officer, Dr. John C. C. Fan. Anyone with two MIDDLE initials is not someone that simply follows fads.
Dr. John C.C. Fan – President and Chief Executive Officer
“A stream of consumer electronics and mobile communications companies are exploring the wearable computing technology market, further strengthening our belief in the significance of the market opportunity. Based on conversations with current and prospective customers, our expertise in critical disciplines, including display, optics, noise cancellation and ergonomics, is what distinguishes us as a leading partner to help these companies build the coming wave of wearable products,” Dr. Fan said.
From the same press release from Tuesday, August 6th, Dr. Fan reports a likely net loss of between $28 and $33 million for the year. The press release also notes, “This guidance excludes the impact of the Company’s sale of its III-V assets and its investment in Kopin Taiwan Corporation, and includes its acquisition of a majority interest in e-MDT America.”
So why are we so rosy on KOPN? Yes, earnings missed estimates. It’s all about the products, the fundamentals and the buzz that goes with the technology.
This is not a buy and hold. This is a play. The way to play it is to see how it settles out over the next few days, pick a low and watch the Company come out with product announcements.
The buzz goes back to this release from May 15th:
Kopin Opens a Wearable Tech Center in Silicon Valley to Accelerate Development of Wearable Computing Technologies
Center to Focus on Speech Enhancement, Low-Power IC and Concept System Design
These people are real. This company is very real. I cannot wait to see what comes from all of it.
Warning: It is going to be a high beta stock. You could see a huge drop at times. That said, I see a nice upside here.