Preface
I've been a VR1holder since early 2020, weathering the peaks and valleys of market sentiment.If essays aren't for you, this post may not fit your preferences. As lurker ofHot Copper but infrequent poster, this format is a fresh venture for me.
Given the lack ofsubstantial dialogue about VR1, I've decided to share my observations andspeculations. While I'm not an investment professional, it's clear thisspeculative stock could benefit from some speculation.
Assessing the VR Landscape
It's essential tounderstand the state of Virtual Reality (VR/AR/XR) and its trends beforedissecting VR1. VR investment saw a resurgence in 2021 when Meta revealed theirrebranding. This reignited hope of a sprawling virtual world, expecting a VRsurge. However, the market has since experienced turbulence, leading some toconflate 'the metaverse's' supposed demise with VR's downfall. With largelosses posted by Meta and their Reality Labs division, it looked as though theyhad made a huge mistake.
I don't agree thatVR is dead. Mark Zuckerberg emphasizes the need for lightweight, non-intrusiveAR/VR wearables, so I consider any current 'losses' as steps towards their techvision. Similarly, despite Tim Cook's VR reservations, Apple is on the brink ofunveiling a VR headset. Giants like Google and Samsung are also developingwearable headsets.
These industryleaders recognize the transformative potential of VR/AR/XR, which numerousstudies have validated for enhancing training and education speed andeffectiveness among other productivity improvements. As technology evolves andcultural acceptance grows (as it did with airpods), these devices are will soonbe everywhere.
Vection Technologies: The Pros and Cons
Pros:
- Industry Diversification: While some might view this as overextending, it allows VR1 to understand various stakeholder needs. Early engagement with complex sectors, like healthcare, gives VR1 a competitive edge.
- Technological Readiness: VR1 is ahead of the game with a suite of programs compatible or modifiable to be compatible with existing and upcoming headsets.
- Strategic Partnerships: VR1 has secured several MoUs with leading companies since 2020. These collaborations could prove invaluable when the industry bounces back.
- Acquisition Strategy: VR1's strategic acquisitions have bolstered growth and penetrated critical markets.
- Financial Health: While industry giants are operating at huge losses, VR1 is closing the debt gap and may even turn positive by the end of the quarter.
- Strong leadership: A number of the board members are experts in their field so have good insight into guiding the company into their fields of expertise.
- Solid customer base: If adoption of VR/AR/XR continues, they already have a great customer base who will be looking to expand further.
Cons:
- Board Composition: A distrusted board member has caused concern among many investors. Management's failure to address these concerns is troubling.
- Product Promotion: Despite having several solutions, VR1 rarely showcases them. Unless you experience the magic of VR it is tough to display well on video (look at almost any youtube video demonstrating VR), customer testimonials could validate their products' effectiveness.
- Financial Reporting: Regular last-minute and late financial reports cast a shadow over VR1's image. There is also doubt around how transparent they are.
- Dependence on industry progress: Their success is determined mainly by the progress and success of the hardware producers. If Apple drops the ball it could damage the company for years.
tl;dr
While VR1 is farfrom flawless and has faced challenges over the past three years, I believe itscurrent share price is primarily due to industry indifference and management'sfailure to address shareholder concerns.
VR/AR/XR is set togrow significantly in the next few years. If they maintain effective execution,VR1 is well-positioned to capitalize on the groundwork they've laid over thepast three years, creating a suite of products ready for the impending releaseof tech giant headsets.
This is all purelyspeculative but would love some discussion!
Same old same old,not financial advice do your own research.
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