2024-04-11 05:35:06 ET
Summary
- Despite being odd, Immersion is a discounted microcap, with no apparent problems and a cash-generative business model.
- The company generates revenue through licenses and royalties on its haptic patents, with a focus on gaming, virtual reality, mobile, and automotive uses.
- Immersion has a strong balance sheet with a significant amount of cash and investments, but there are risks related to future patents and distant management.
Immersion Corporation ( IMMR ) probably comes up in a lot of stock screeners that suggest undervaluation. For my part, it's one of those peculiar microcaps that doesn't have a lot going for it, but also has no apparent problems when you look under the hood. Because of this, I'm okay with calling it a Buy, but I think folks should really understand what they are buying with this, so let's get into it.
Financial History
If we look at the numbers over the years, we have seen an odd trend. For starters, Immersion has declining revenues from 2014 to 2023....
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Immersion Corporation: Undervalued On Paper, Despite Lack Of Growth