A Strong Correction for 3D Eye Solutions, Inc. (OTCMKTS:TDEY)

3D Eye Solutions, Inc. (OTCMKTS:TDEY) had a great run in the past weeks, but the ticker was destined for disaster. We thought that the hype would last at least until the end of this week and the correction will come after the weekend, but things developed faster.

It was evident that the situation will unfold this way, because the 1366% that the stock gained in a little over 10 day were just too much for a company with a profile such as TDEY to handle and the stock lost 48% of its value yesterday. The news that we are seeing in the press releases are just too vague and when you start looking at the details you start seeing bad signs.

The September 24 press release for instance, mainly emphasized on the good reaction that TDEY are getting about their App 3DTV. However, the only statistics that we got were the percentages of users in different regions that have subscribed for the service.

We didn’t get any information of the exact number of downloads of the latter, but a quick search in the Google Play, Android App section reveals that it is not as successful as TDEY try to market it. As we mentioned in our previous article the number of downloads is between 10 and 50, which isn’t that much considering the low price of the service and the fact that it has been in public beta for more than a month.

When you take that number into consideration yesterday’s press release comes like a slap in the face for people who thought of a long-term investment in the company’s stock.

Yesterday the company came with news that were optimistic if you didn’t take a closer look at the numbers. They stated that global 3DTV sales will increase 166% by 2017 and if you translate this increase in the demand that we see for their product for now it means that they will have below 10000 subscribers in 4 years.

They have high hopes of making it big, but will they be able to compete in an industry that has already been occupied by large corporations? We seriously doubt that, but it doesn’t mean that they can’t make a profitable business.

Until that time comes, however, their stock couldn’t be taken seriously and we expect big corrections in its price. This is why we urge you to do a lot of due diligence and weigh out the risks if you have any thoughts of investing in them.