MicroVision (MVIS) Stock: Buy Tomorros Dip Ahead Of M/A News

Microvision MVIS Stock News

MicroVision, Inc. (NASDAQ: MVIS) is making a run for the top in the market this morning, trading on gains of around 5%. While there has been no news issued by the company, continued talks with regard to a potential acauisition of the company across social media seems to be fueling the run.

First and foremost, before we get too deep into this article, I want to let you know that I do believe a buyout is coming. We’ll talk about why in a minute. Before that however, I want to warn you that the stock is likely to see some declines tomorrow, and when this happens, it’s likely a great time to buy. Here’s what’s going on:

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Why MVIS Stock Could See Declines Tomorrow

As mentioned above, MicroVision is likely to see some declines tomorrow, but you won’t find any news about the move in press releases or SEC filings issued by the company. That’s because the news that will determine the move has more to do with Microsoft.

At the moment, Microsoft is working to develop heads-up display and night vision for ground forces under a contract valued in the billions with the United States Army. tomorrow, there will be a review of this contract, which could lead to the Army losing about a quarter of the requested funding for the program, meaning that Microsoft will lose as well should things go in the wrong direction.

Of course, if funding for this project is reduced, all partieis involved, including MVIS have the potential to feel the pain. As such, we’ll likely see a dip tomorrow as investors take profits and await the result of the contract review. While I’m expecting the dip to take place, there can also be gains as investors accumulate shares hoping for a positive result, it really could go either way.

Nonetheless, should there be a dip, it will represent an opportunity to get in on what will likely be tremendous future gains driven by M&A transactions by getting in on the dip.

MVIS Is A Perfect Candidate For A Takeover

We’ve been talking about the potential for a takeover of MVIS for several weeks now, and my opinion on the topic hasn’t changed. First and foremost, Microsoft has clear reasons to look to takeover the company.

In fact, back in May, I wrote an article that explained that MicroVision is too big for Microsoft to let fail. The reality is that the technology that MVIS has developed is key in the development of Microsoft’s HoloLens as well as other products that are likely under development.

This technology is also at the epicenter of the billion dollar contract between Microsoft and the United States Army. Should MVIS fail, or be taken over by another entity in tech, it would be bad news for Microsoft.

This leads us to the next big argument:

There’s Strong Potential For A Bidding War

Microsoft isn’t the only company that would benefit from a takeover of MVIS. In fact, there’s a strong argument circulating on StockTwits that Novus Capital could be yet another suitor. It makes sense, Novus is working through an aggressive play in the 5G space and did recently announce that it is going to move forward with a takeover in the sector.

Beyond Novus, Facebook, Alphabet, and any other player in the virtual or augmented reality space could see tremendous value in a potential takeover of MicroVision.

With that said, I don’t just believe that a takeover is going to happen, there’s likely to be a bidding war for the takeover of the company, leading to what I expect to be an incredibly strong premium.

The Bottom Line

When we first started talking about MicroVision, we were talking about a struggling company. The company was in danger of being delisted and had more questions asked than answered. Today, the fear of delisting is far in the past. Not to mention, with the expectations that the company will be acquired in the relatively near term, MVIS is a stock that’s worth watching closely!

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