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Is MVIS Stock a Solid Long Term Investment?

Stock Market

Have you ever heard of a company called Microvision? If you have, then you might know that many stock market analysts believe that this is a company that is worth watching. If you're not familiar with them, it might be time to get that way. This is especially true if you’re thinking of using the stock as a long-term investment.

Understanding Microvision and What They Do

Simply put, Microvision is a company based in Redmond, Washington that develops technology related to laser scanning. It's frequently used for capturing images, creating additional 3D images and sensing objects that might be in the path of oncoming vehicles. As such, they have the fairly unique position of being an asset to both the entertainment industry and those in the legal field while simultaneously having an entire department that works to make traveling safer by including road sensing technology for automobiles.The company was founded in the early 1990s, 1993 to be exact. The company is traded on NASDAQ as MVIS and while shares are currently down by 4.61%, you can still purchase the stock for $4.35 a share. If you're wondering whether or not that makes them a good long-term investment, then you should probably keep reading.

Playing the Long-Term Investment Game

You probably already figured out that a company like this is practically poised to take the world by storm, even before you look at anything related to its performance in the stock market. Perhaps the most important thing that you need to know here is that this particular stock is largely deemed by stock market analysts to be more than capable of performing better in a year's time than it is now. Take the current price of $4.35 per share as an example. According to a number of analysts, that price is believed to go up within the next year. Many analysts believe that the shares might be able to sell for as much as $7.42 per share. If you really want to take things to the next level, consider the five-year forecast, which predicts that these same shares will then be selling for more than $20 each. That's definitely enough to get your attention, especially if you're someone who is looking specifically for a long-term investment that could potentially make you a substantial amount of money without causing you to lose sleep at night worrying about whether or not you've made the right choice. It certainly doesn't hurt that this is a company that has more or less secured its financial well-being by becoming valuable to a number of different individuals in several different industries. It doesn't matter if you're talking about manufacturing road sensing technology for automobiles or something for the entertainment industry, they have something to bring to the table. The same is true for law enforcement, thanks in large part to their ability to use their technology to capture images.

Thinking Like an Analyst

When stock market analysts look at whether or not they believe a company will continue to be valuable, this is one of the first things that they take into consideration. In this particular case, the company seems to have everything going its way. They've secured the technology and they definitely know how to use it. They also know how to market it appropriately. Perhaps the most important thing is that there isn't a lot of drama that routinely ends up in the news about this particular company. They've been in business for a very long time and they have a tendency to keep their head down and do their job, all the while advancing new technology so that they can do it better than ever. All of these things point toward something that is potentially valuable in the long-term. As a matter of fact, many people are absolutely shocked that you can currently purchase shares of this particular stock for a little more than $4 each. Many stock market analysts are thoroughly convinced that you would almost have to be crazy not to take advantage of this because as far as they're concerned, you're getting the stock for next to nothing and there is every chance that it's going to become many times more valuable within the next five years than it is today. That amounts to a decent payday for you, especially if you decide to invest enough money to buy several shares.

Recent Performance

Obviously, one of the things you want to do as an investor is to look at the history of a particular company as it relates to its performance on the stock market. This one is definitely interesting, even for people that don't really have a tendency to get all that excited about much of anything on the stock market anymore. Why is it so exciting? In the last year alone, the overall value of the company has increased by more than 5,200%. That is an absolutely staggering increase, even when compared to other companies that are at the top of their game. As a matter of fact, the only thing that most people would even consider as a potential disadvantage to investing in this company in the long-term is the fact that it is, for all intents and purposes, a tech company which is traded on NASDAQ. That doesn't necessarily mean that it's a bad idea, only that tech companies traditionally have a tendency to be far less stable than a lot of other types of companies. As such, their stock doesn't tend to be as stable, either. As a matter of fact, some people are absolutely terrified to touch anything that is traded on NASDAQ because of the potential for volatility. That being said, there are some standout companies that seem to have everything going for them, regardless of the field that they are involved with. This particular company definitely falls into that category. Even for those who are typically afraid to tread the waters of NASDAQ, this is an appealing offer. It's one that is affordable in the extreme, and it has the potential to provide a genuine return on one's investment without a lot of extra drama that could potentially derail those profits. All things considered, even those individuals who don't have much experience with the stock market would probably do well for themselves to at least consider investing in this particular stock as a long-term investment. There is genuine potential to make a lot of money and there don't seem to be a lot of red flags which could potentially suggest that things might go sour sometime in the relatively near future.

The Potential for Explosive Growth

There is something else that should be considered here. One of the main things that this company is responsible for is the development of Lidar technology, a type of road sensing technology that can be used effectively for driverless automobiles. While it isn't likely to happen tomorrow or even in the next six months, there is a genuine potential that autonomous automobiles could become the norm as opposed to being the exception in the relatively near future. If you consider buying the stock now and holding on to it for anywhere from three to five years, you might be surprised how much this technology increases during that time, not to mention how much more frequently it's used as many automakers are looking to use this type of technology exclusively for their autonomous vehicles. Even without this type of development, the company is poised to continue to increase in value over the next several years. If you would allow yourself to imagine for just a moment what could potentially happen if this technology explodes and suddenly becomes in extremely high demand, you might already be seeing dollar signs. Provided that were to happen, there is every chance that the stock could increase far more than the current predictions for the next five years. While there is no guarantee that this will absolutely happen, there's no guarantee that won't happen, either. It's also worth noting that at this particular point in time, that is the direction a lot of automakers are thinking about going in. It's almost certain that at some point, almost every car on the road is going to become autonomous. The technology has to be in place to make that safe and Lidar technology is at the forefront of that particular industry.

Not Everyone Agrees

Of course, not everyone agrees that this particular stock is the knight riding in on the white horse to save everyone that it sometimes seems to be. As a matter of fact, there is a relatively small contingent of stock market analysts who believe that excitement for this particular stock will eventually drop off on a basis that is more or less permanent, at least until autonomous vehicles become more than just a pipe dream for the average individual. Is it possible that the same stock that many people have absolutely fallen in love with is also one that's capable of such dramatic failure that some analysts wouldn't dream of going anywhere near it? If you've been involved with the stock market for any length of time whatsoever, you already know that the only constant is change. Aside from that, you can almost bet that every stock market analyst you find will never be in complete agreement with other analysts who are looking at the exact same information. That's largely because the information isn't always as cut-and-dried as most people would like to believe that it is. As a matter of fact, many people have yet to accept that the stock market can sometimes be extremely volatile, unpredictable and difficult to predict. After all, if it was really as easy as looking at a few pieces of paper for information and then realizing that every major stock market analyst who has looked at that same information arrived at the same conclusion across the board, practically everybody would be investing. The reason that only a handful of people actually do so is because it can be risky and sometimes, it's difficult to understand, under even the best of circumstances. That's precisely why stock market analysts don't always agree. In this particular case, that's why some don't see the stock becoming as valuable as others might have predicted.

Your Duty as an Investor

As an investor, the thing that you have to remember is that things are not always what they seem. There are those times when a stock that seems to be a sure bet eventually blows up in your face. By the same token, there are those rare occasions when something doesn't look like it's going to work out and then it turns a corner and surprises you. If you're going to invest in the stock market, especially in long-term investments, it's vitally important that you gather as much information as you can possibly get and then pour over that information, making notes as you go along. See where past trends have been and try to look at where you think the stock is going, all while keeping the recommendations of stock market analysts fresh in your mind. What they have to say is vitally important, but it shouldn't necessarily take the place of your own gut instincts. If you feel strongly about a particular stock going one way or the other, it's important to pay attention to those feelings. More often than not, those feelings are there for a reason.

When it's all said and done, the entire point of investing in the stock market is to make money. Granted, you're not going to make money on every single investment you participate in. It isn't even realistic to have such an expectation. However, you shouldn't purchase stock with the expectation of losing money, either. At the end of the day, you have to decide if this is a stock that's right for you or not. Sure, there is a chance that the analysts who don't believe it's capable of going anywhere will be right. There's also a chance that those individuals who predict its increase over the course of the next several years are also right. Once you've analyzed all of the information, it's up to you to decide which way to go. If you're still looking for advice, many people believe that this particular stock is perfect as a long-term investment, especially if you buy several shares at today's prices.

Allen Lee

Written by Allen Lee

Allen Lee is a Toronto-based freelance writer who studied business in school but has since turned to other pursuits. He spends more time than is perhaps wise with his eyes fixed on a screen either reading history books, keeping up with international news, or playing the latest releases on the Steam platform, which serve as the subject matter for much of his writing output. Currently, Lee is practicing the smidgen of Chinese that he picked up while visiting the Chinese mainland in hopes of someday being able to read certain historical texts in their original language.

Read more posts by Allen Lee

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