If you’re a gaming fan, you know the new Call of Duty (COD) beta is dropping this week, with the full release set for November 10th. And even if you’re not a COD fan, if you’ve played any video games recently, you probably know there is nothing more important to a gamer than their controller.
Immersion Corporation (IMMR) is in the business of, among other things, making controllers more fun, keeping gamers engaged, and bringing new gamers to the table.
The company makes haptics…that’s the technology that makes the controller buzz in your hand when you hit a target, or your real life steering wheel vibrate when you cross the double yellow line, or even your phone buzz when you get that important text telling you your takeout is ready.
As we become more and more tied to our video devices, Immersion is finding more and more ways to make the devices interactive, and in the case of automobile haptics, safer.
And with the emerging world of VR/AR (virtual reality/augmented reality) really coming into its own, Immersion has a whole new area of technology to deploy their interactive haptic devices. When most people think of VR/AR they think of video games, but there is a whole other side to the technology.
Training, from military to industrial to educational, is an especially vibrant part of VR/AR and spans a multitude of uses for haptic technology.
Immersion trades at only 5x earnings, and has a strong balance sheet; the company bought back 1.3% of shares outstanding and paid its fourth consecutive dividend in the latest quarter.
IMMR has a PE of just over 5, and pretty incredible gross margins, at almost 98%, and even operating margins are running at almost 64%. Our POWR Ratings have Immersion at an overall grade of B, with a rating 87.43% better than all the stocks we track. It’s especially strong in Quality, at 96.78%.
Immersion is currently trading at the low end of a range it has been in over the past year, at just under $7, it has traded as high as $9.25 in late March.
Whether you’re picking up your copy of COD in the next month or not, Immersion should be on your radar as an under $10 stock that is bringing valuable technology to a number of hot technology areas.
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IMMR shares were trading at $6.76 per share on Thursday afternoon, down $0.08 (-1.17%). Year-to-date, IMMR has declined -1.40%, versus a 14.69% rise in the benchmark S&P 500 index during the same period.
About the Author: Jay Soloff
Jay is a former professional market maker who cut his teeth trading on the floor of the CBOE. With more than 20 years of experience trading and investing, his focus is on making professional strategies accessible to everyone, which is exactly what does in his highly profitable POWR Income and POWR Stocks Under $10 investment advisory services.
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