Any small cap company aiming to innovate the digital sector is going to pique investor interest. Especially in the digital sector. Immersion (NASDAQ:IMMR) is currently in the red but is this a good thing for potential new investors? A buy-signal perhaps? Could Immersion be included in a list of undervalued stocks?
Undervalued Stock? Who is Immersion?
Immersion is known for its innovations in haptic technology. This technology uses sound waves to mimic the feel of an object that isn’t physically there. Using haptics adds to the digital experience by allowing the user to ‘feel’ the scenario and, ultimately, make the content appear more real.
So, in essence, Immersion creates “the sense of touch” to digital content.
Let’s stop here for a moment and think about the appeal of this technology for e-retailing.
Imagine you are about to buy a shirt online. What if you could ‘touch’ that shirt to know the quality and feel of the fabric before you bought it? Wouldn’t that help to enhance your buying experience and inevitably your purchasing decision?
Well, this is the level haptic technologists are aiming to go. We must look at Immersion stock with that in mind.
Another example, according to the company website, is that haptics allow gamers to “feel the G-forces applied to a car around an S curve.” Gaming offers a whole other level of haptic potentials.
So now that you understand what Immersion does, let’s see why this could be included on an undervalued stocks list.
Undervalued Stock Stats
Let’s look at IMMR stock’s history:
- Just under a year ago, IMMR shares were priced at $5.87 each
- The stock doubled by February 2018 and by the summer it had almost doubled again
- It hit its all-time high of $17.15 by mid-June
- By the start of August, the stock fell dramatically and has declined since
- IMMR is valued at $9.66 at the time of writing
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Future Potential
The price ‘hill’ this stock has experienced in only a few months leads us to wonder if, at its current value, IMMR is an undervalued stock? Haptics technology is a huge untapped mecca of the digital experience, the final piece of the puzzle if you will.
We can operate machines with our voice, we can step into a 3-D world, we can launch operations with a touch, but can we feel the shirt we are buying online?
This stock’s potential relies on the potential of the haptic technology market. If in time we begin to normalize ‘feeling digital’ like we have with ‘seeing digital’ or ‘hearing digital,’ then this industry will surge.
It could take another year, another three, or maybe just a few months. Who knows? But Immersion could very well be an undervalued stock at present.
What do you think? Would you add Immersion to your list of undervalued stocks?
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