Innovative Eyewear Inc. (LUCY)
LUCY develops and sells smart glasses and sunglasses. Talk about a cool product. Take a look at some of these features:
- Open-ear audio
- Bluetooth 5.0 (stable 100-ft range)
- Touch controls
- Polarized and prescription lenses
- Fantastic battery life
- Premium microphone
- Water resistant
Here are the styles and lens colors available for their flagship product, the Lucyd Lyte®.
Trending
This stock came to my attention this weekend as the stock was trending on the Shortable Stocks main page. It sure looks like this company chose a terrible time to go public. They IPOed on 8/11 at $7.50/share and it's been straight down since. Well, until last week that is.
The big news on 10/3 that broke the losing streak was the announcement that Innovative Eyewear had licensed the Nautica® brand for their smart eyewear. There were no financial terms given in the press release, and maybe shorts were emboldened by this to continue pressuring the stock.
Taking a look at the unusual short sales activity,
LUCY showed up on 10/3 and 10/7. So the PR comes out after the long sustained decline and with no financial details. Big deal, right? Wrong. After just a couple days of backing and filling (and closing the gap on the chart), the stock took off again on Friday, October 7th. Will this pattern repeat? There's now a gap down to $1.68 that may or may not get filled. I suppose it might depend on the overall market.
Short Volumes
Official short interest through the 9/15 settlement date (most recent data) was only 97,738 shares. This will be changing drastically as the data get published over the coming periods. Data from CBOE indicate that on 10/7 alone the short sale transaction data was 5,653,042 shares. This represents the majority of the 7.31 million shares outstanding. The fee and rebate rates have been pretty steady since
LUCY went public. The most current figures are 13.67% and -10.60% respectively. While these are not crazy rates, they are still punitive. As of Friday morning (10/7),
LUCY went zero borrow.
Highly Speculative
This company barely has any revenues as of yet, and while they're growing rapidly, they should be considered highly speculative. In other words, I wouldn't bet the farm on them. However, the product does seem very cool, and I might have to buy a pair!
