It's official:
Immersion (IMMR) just hit paydirt!
And hopefully you did, too.
Why? Because in our free report (which you should have read by now) -
The Seven Most Investable Technology Trends of 2013 - I noted that Immersion is an excellent way to play the exciting developments in motion-sensing and touch control technologies.
Well, the news couldn't get much better: Earlier this week, Immersion struck a multi-year licensing agreement with tech giant, Samsung.
In fact, terms of the deal were so sweet that management increased its 2013 sales guidance by about
50%. The company now expects full-year revenue to fall between $44 million and $48 million - way up from its previous projection of $28 million to $32 million.
Investors responded exactly as they should to such an announcement. Immersion shares have soared by 50% since Thursday morning's announcement.
There are two reasons why I'm bringing this up today...
Strategy Pays Off for the Longtime Leader in Haptic Technology
First, securing a deal with one of the world's biggest technology firms bodes very well for Immersion's future.
Or, as Immersion CEO, Victor Viegas, puts it, "We believe this agreement marks an important milestone in our strategy to monetize our technology more fully within the mobile market."
He's talking about haptic technology - an area that Immersion has led for a long time.
The word "haptic" comes from the Greek "haphe," and simply means "pertaining to the sense of touch."
Haptic technology refers to the way that users interact with devices by applying forces, vibrations and/or motions to increase realism, accuracy and performance.
Now, even though Immersion secured its first patents in the area way back in 1997, the company didn't transition its business toward aggressively pursuing licensing agreements for its technologies until 2011.
So the Samsung deal is significant because it represents a major step forward in realizing the potential of that transition.
What's more, with 469 patents and 166 patent applications on file, there's much more deal-making to be done.
So even after this week's rally, I still consider the stock a compelling investment.
Now for the second reason why the Immersion-Samsung deal is significant...
Haptics Are Entering Primetime
The fact that Samsung has signed a major deal with the haptics leader signals that market interest in this field is rising.
And since the tech sector is all about following the leaders, broad market adoption of haptics appears increasingly likely.
So how do we find more companies like Immersion?
Well, in the wake of the Immersion deal, one company instantly became much more compelling.
Based in Finland, the company's CEO says its technology makes touchscreens "come alive."
He's not kidding, either.
And, of course, true to our investment mandate, the company has the patents to back up those claims, too.
So stay tuned for the next column, where I'll share all the details on this exciting startup, as well as a handful of others that I'll be adding to our list of Top 10 Startups to Watch in 2013.
Ahead of the tape,
Louis Basenese
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