Seeing Machines wins BMW contract worth between US$125m to US$250m

I’m convinced that Seeing Machines has recently been awarded a contract worth more than US$25m a year by BMW to supply its driver monitoring system in its cars, some of which should be available for sale by 2020.

From discussions with auto industry contacts, I believe the contract is for many forthcoming models (several million cars) and the DMS is likely to eventually end up being standard issue within the instrument cluster of all BMW cars. Given that BMW sells roughly 2.3m cars a year and that Seeing Machines would get approximately US$30 a car, that makes a potential annual income of US$57m a year by 2020, rounded down to US$50m.

Given that in the auto industry the lifetime of a model lasts for roughly 5 years, the lifetime value of this contract should be at least US$125m, though it could be as much as US$250m.

When this news is officially announced I’d expect broker upgrades to be the order of the day.  FinnCap currently has an estimate for full year revenues of A$141m for 2020 and Canaccord Genuity has an estimate of A$128.5m — of which only A$24m is from auto!


There has been no official announcement of the contract win aside from an announcement by Aptiv on page 9 of this document that I take as confirmation. 

When questioned, Aptiv were unwilling to discuss any details, saying: “…unfortunately we have nothing incremental approved to share beyond what’s in the document.”

Given the scale of BMW’s operations, the BMW contract may be shared with at least one other Tier 1 but no others that I’ve contacted are keen to confirm or deny involvement.

BMW itself remained rather coy. Asked how it plans to solve the problem of driver disengagement and the associated issue of ensuring the driver is alert and ready to take back control from the car, whether it would use a driver monitoring system and who would supply it, a spokesman said: “So far we have only announced that interior cameras will play a role ensuring the vaild point you mention. Details on functions and suppliers have not yet been announced. We have to ask for a little more patience.”

Seeing Machines was contacted but declined to comment.

Winning BMW so soon after it won a huge contract with Mercedes last year truly cements Seeing Machines’ Fovio driver monitoring system as the leading DMS in the auto industry. The premium choice for premium auto manufacturers.

Note that General Motors Cadillac already features Seeing Machines Fovio DMS.

Not only is Seeing Machines working hand in glove with Autoliv and Bosch, but I believe its DMS is now being used by LG (Mercedes), Aptiv and probably others that I don’t know about.

Driven by regulatory changes many other car OEMs are going to be tendering for DMS systems and Seeing Machines is set to be the industry standard. A standard that i’m consistently told no other company can yet match.

Thus, I’m confident that Fovio is likely to be chosen by many other global OEMs as they gear up new, increasingly semi-autonomous, vehicles for production over the next year.


By my reckoning the automotive side of Seeing Machines must already be worth £1bn and with every new win is only increasing in value.

Moreover, there’s a strong case for arguing the rest of the business (Fleet, Aviation, Rail and Off-road)  is worth another £1bn.

Given the success of Seeing Machines in winning large contracts and the increasing momentum of M&A activity in the auto industry I believe it’s only a matter of time before a bid is forthcoming from an industry player. Let’s hope the price soon reflects the value of the business.

The writer holds stock in Seeing Machines

Seeing Machines delivering on long-term strategy

In an exclusive interview with Seeing Machines interim Chief Executive Ken Kroeger, he has confirmed that the company remains on track to hit its first half financial targets and is making no adjustments to its full year figures.

Following the departure of former chief executive Mike McAuliffe, who had only been in place a few months, private investors have been concerned as to whether there was likely to be any strategic change of direction. Happily, as Ken Kroeger confirmed: “The strategy that we’re executing is exactly the same one that we were executing when he arrived. Moreover, the executive team that is delivering that strategy remains the same.”

It’s a point that was well made by Lorne Daniel, analyst at house broker FinnCap a week ago, when he wrote: “We know that the second tier of management in this business is particularly strong and will continue to follow the strategy and deliver on the milestones as expected.”

The business certainly seems to be making steady progress across fleet, auto and aviation and Kroeger stressed the efforts of the executive team in having built them up. “These are businesses that didn’t even exist a few year ago and Paul Angelatos (Fleet), Nick Di Fiore (automotive) and Pat Nolan (Aviation) have done a great job in creating and building these markets for Seeing Machines.”

Auto industry

Not only is Seeing Machines working with GM to deliver driver monitoring systems for its cars (most notably the Cadillac CT6 whose Supercruise system uses it), but on October 30, 2017 its Fovio Driver Monitoring System was chosen by a premium German OEM (who I believe to be Mercedes).

Kroeger wouldn’t comment on who the German OEM is but did confirm: “It is extensively pushing the boundaries in driver monitoring, taking it to a whole new level. That is underway. That is a real state of the art delivery, very technically challenging but it sets a completely new performance standard for DMS.”

Given recent bulletin board discussions as to the respective merits of Seeing Machines technology vs. SmartEye, Kroeger was happy to explain: “We have the best technology, there is no doubt about that at all. SmartEye has an okay technology, which is cheaper…we’re much better positioned to take the premium car models that are interested in performance, who need this to work because it is a safety critical feature. For models that are being rolled out where it is nice to have comfort features in the car, which only require rudimentary head and eye-tracking, SmartEye is a viable option.

He added: “Right now we definitely have a leadership position from a technical perspective. That is very much respected by the auto OEMs.”

In addition, I’m optimistic that other OEMs will select Seeing Machines DMS technology, doubtless driven by the NCAP requirement for any car model wishing to have a 5 star safety rating from 2020 to have a DMS in place.

In Japan strong market opportunities are being helped by the effort of Kevin Tanaka working out of the West Coast in the US. Also Kroeger confirmed: “There is a very strong alignment with Xilinx in Japan, who are doing a lot of our on the ground marketing for us. It is definitely getting well received by the Japanese.”


While a comprehensive Fleet update is due this week that should provide much awaited news on further wins, Kroeger did reveal that the Guardian 2.0 device will start shipping by the end of March. The upgraded system is significantly cheaper to manufacture, smaller and easier to install, which should also help increase penetration rates.


Given the much higher profile of Seeing Machines since the launch of the Cadillac CT6 and the most recent CES show, where it was showcased by both Bosch and Autoliv speculation is increasing daily over whether it is being tracked for takeover, whether by a Tier 1, a telematics company, or even Google or Apple.

Asked about this Kroeger coyly replied: “There is always interest. We would never say ‘no’ to a conversation but we also recognise that there will a time when the time is right to return the best value to shareholders. We’re very cautious about the conversations we do have and, if we were to contemplate selling the company, we would have to find somebody who valued the entire organisation to obtain the full value for it.”

When pressed further about Google, Apple or Amazon seeing the long term value in Seeing Machines technology, which has applications far beyond transport alone, given it can enable robots to see and perhaps eventually even empathise with humans, Ken Kroeger commented: “I agree it is either someone like that who can see the full value or a really diverse Tier 2 or Tier 1, as opposed to the OEM. The Tier 1s sell to the OEMs but some of the Tier 2s which sell to the Tier 1s are exceptionally diverse. They might be building stuff for automotive, stuff for aviation and stuff for medical devices, stuff for consumer electronics. They might not just be an automotive-centric supplier. They are really hard to find and pinpoint but they are out there because they are always talking to us.

Of the partners that Seeing Machines currently has some are definite possibles. “Or, it could be someone who sells image processors and wants to start packaging it with software already on it on a smart camera or smart sensor,” teased Kroeger.

Despite being a world leader in DMS tech, a key plank in the forthcoming generation of semi-autonomous cars and increasingly being considered in trains, planes, trams and buses, it’s current share price languishes at approximately 5.5p. This valuation anomaly cannot last much longer, especially as with the recent fundraise it has been largely de-risked as an investment provided sales continues.

Ironically, such a deeply discounted valuation could well be the catalyst for an opportunistic bid from a cash-rich global player before the year end.

The writer holds stock in Seeing Machines.

Financial scandals: it’s time to punish the guilty

We need to strengthen the law and ensure it’s rigorously enforced to punish those responsible for financial crimes and mismanagement.

For far too long those running financial institutions have had a ‘get out of jail’ card, while their foot soldiers take the blame.

Here’s an article on Enforcement I wrote prior to the Carillion debacle.

I hope it proves of interest.

Seeing Machines secures premium German car manufacturer

Seeing Machines (AIM: SEE) has today announced that it has won a contract with a premium German auto manufacturer in conjunction with a major Tier 1 auto manufacturer.

This is a further striking endorsement of its Fovio Driver Monitoring technology, which is already in the new Cadillac CT6’s Supercruise feature – the car was launched by General Motors this autumn in the US.

The awarded models are scheduled for mass production in 2020. My own guess is the manufacture is probably Mercedes. If it is, the tech is likely to debut in its top of the range S series, which is scheduled for a relaunch in 2020.

Motoroids wrote an interesting article about the Mercedes S Class 2020/21 a few months back.

However, it could equally well be Volkswagen with whom Seeing Machines have been working — they exhibited together at CES in 2017,  or even BMW as there is some evidence to suggest Seeing Machines have been working with them.

What is more important than the actual name of the manufacturer is how much money it is likely to bring into this very undervalued small cap tech play in one of technologies hottest sectors; semi and fully autonomous driving.

This is what Seeing Machines had to say: “According to previously given guidelines, this may be considered a Medium value program (from A$10M-A$25M revenue) based on the initial included models and lifetime volume projections, with the potential to become a Large value program in time (>A$25M revenue).  It is worth noting that volume projections can change materially, up or down, and as is typical in automotive industry contracts, there are no guarantees beyond engineering milestone payments.”

For me, this contract from another of the world’s leading car companies establishes that the Fovio Driving Monitoring system is best in class. Moreover, given the contract could be worth as much as 50% of Seeing Machines current market cap, it looks very undervalued.

Certainly, Seeing Machines seems very confident, as  Nick DiFiore, General Manager of Automotive at Seeing Machines, commented: “We are proud to be awarded this benchmark DMS program from both an OEM and Tier 1 with state-of-the art requirements.  Their confidence in us is a testament to the leading-edge nature of our FOVIO DMS technology, which is the culmination of years of innovative development and hard-earned Automotive application expertise by our team.  We look forward to delivering this leading-edge DMS program and further delivering our new FOVIO platform products to our growing Automotive customer base worldwide.”

Lorne Daniels, analyst with house broker FinnCap, believes that Seeing Machines is now the “go-to supplier for DMS in automotive”.

In a note published today, Daniels wrote: “Euro NCAP’s recent announcement mandating DMS as a key criterion for vehicle safety has sharpened the timeline and focus for OEMs; it takes years to design a model and if they want a 5-star rating after 2020 they will need to integrate a good DMS. Fovio is proven, reliable and quite literally, already on the road; a natural choice for the global automotive industry.”

The writer holds stock in Seeing Machines.

Seeing Machines on track for first rail sales

Seeing Machines (AIM: SEE), an industry leader in computer vision technologies that enable machines to see, has confirmed that it expects the first firm sales of a new driver monitoring rail product by Progress Rail before the end of the financial year.

This follows an announcement on September 8th that it had signed a new extended Partnership Agreement with Progress Rail Services Corporation (Progress Rail).

In an exclusive interview, Paul Angelatos, Senior Vice President & General Manager Fleet, Rail and Off-Road at Seeing Machines, told Safestocks: “As you know, we have undertaken various trials, using the mining tech, for rail. Through these trials, we have learnt more about the way an engineer operates in a locomotive cabin (for example, they get up and move around), so there are specific things that will change within the product, but the core product technology will not change. This is a fine-tuning, so we do expect to have sales by end of the financial year.”

Revenue streams

Seeing Machines will derive revenues in two ways from these sales:

  • From a royalty on hardware sales;
  • An agreed fee for services (tech support and monitoring).

In addition, as part of the new agreement both parties have an agreed overall minimum revenue target for each year, which Progress Rail needs to deliver on to retain exclusivity.

Angelatos declined to reveal the level of royalties but it is expected to be well in excess of the mid-teens percentage it receives from Caterpillar in mining vehicles. Confidentiality agreements similarly prevented him disclosing the minimum revenue targets each year, although he did state: “This is a 5-year agreement. By year 5, we expect that this deal would be returning in excess of US$6m per year.”

Fatigue is a contributing factor in over 20% of rail incidents, according to research from the Rail Safety and Standards Board in the UK. Given that there are 200,000 freight and passenger trains worldwide, Seeing Machines has first mover advantage in a potentially huge market.

The writer holds stock in Seeing Machines.

Dangerous products: what are your rights?

[This is the original text of an article published in The Guardian under the title: ‘Dangerous business: what to do if a product you use has been recalled’.]

Overheating Samsung Galaxy Note 7 phones are just the latest in a never-ending stream of products released that aren’t safe for use: from exploding car airbags to Whirlpool tumble dryers that catch light.

These items have all necessitated product recalls but it can be a messy, long drawn-out process that is unlikely to catch all the offending products in time to prevent inconvenience, injury or even death.

For example, the exploding airbags supplied by Japan’s Takata to multiple car manufacturers across the globe necessitated one of the largest product recalls in history. It began in 2008 and is still ongoing, affecting 100 million airbag inflaters in more than 40 million cars. Globally, the death toll connected to Takata airbags stands at an estimated 16 people.

While recalls are rarely on this scale they’re an important means of safeguarding consumers from dangerous ‘white goods’, domestic electrical appliances such as tumble dryers, washing machines and fridges. Hence, there has been much anger and surprise at Whirlpool’s decision (it owns the Hotpoint, Indesit and Creda brands), to recommend consumers continue using some dangerous models before they’re repaired.

In contrast London Fire Brigade has recommended customers stop using Hotpoint, Indesit and Creda tumble dryers made between April 2004 and September 2015. Indeed, it is campaigning to make white goods safer.

According to an early day motion tabled in October by Andy Slaughter, Labour MP for Hammersmith, the London Fire Brigade has attended over 2000 incidents since 2011 to tackle fires involving white goods, with an estimated cost to the public purse of over £118 million and “devastating consequences” for those involved.

So what are product recalls?

Product recalls are essentially safety alerts issued by a manufacturer, importer or retailer and can either be issued on a voluntary or compulsory basis by a ‘Market Surveillance Authority’ (MSA), which monitors and enforces legal safety standards on consumer products. In the UK the bulk of this work is undertaken by Trading Standards departments.

When issued on a voluntary basis the manufacturer admits the product is potentially dangerous and that it may present a hazard to consumers. So, as a precautionary measure, they’ll usually recall the product by issuing a recall notice to inform customers of the batch number, product code and model of the item concerned. In most cases, products will either have to be returned to the store or distributor who will organise for the repair or replacement of the item.

If agreement can’t be reached then compulsory measures are taken by Trading Standards, and can include one or more of the following:

  • a ‘ Requirement to Warn’ the public that it may present a hazard when used under certain circumstances;
  • a ‘Requirement to Mark’ the product with a warning that it may present a hazard;
  • a ‘Suspension Notice’, which can be issued, temporarily removing the product from sale while safety tests are carried out;
  • a ‘Recall Notice’. This is issued when a product is already on the market and there is reasonable evidence it is dangerous;
  • a ‘Withdrawal Notice’. This is the permanent withdrawal of a dangerous product from the market.

If the product is sold in more than one EU state, the UK authorities must also notify Brussels so that the product can be placed on RAPEX, the European rapid alert system for dangerous products. It ensures that information about dangerous products withdrawn from the market and/or recalled from consumers anywhere in Europe is quickly circulated between Member States and the European Commission, so that appropriate action can be taken everywhere in the EU.

The problem for consumers is that there isn’t any central database where you can go to find out about all the products that have been recalled. According to Gavin Reese, a Partner at law firm RPC: “There are currently over 30 web sites that list product recalls including the Chartered Trading Standards Institute, RAPEX and Electrical Safety First. It is considered that consumers and businesses alike would be much better served if there was a central system that was easy to follow, which enabled both consumers and businesses to know what procedure to follow with recalling a product and what products have been recalled.”

Worryingly,  resources to enforce standards have also been cut: a spokesperson for Electrical Safety First told The Guardian: “We are extremely concerned at the impact of Trading Standard staffing cuts, which we believe will severely impact on consumer safety. It is particularly ironic that this essential service is being decimated – with staff cuts totalling 53% since 2009 – at a time when there have been a host of high-profile product safety scandals, from exploding hover boards to tumble-dryer fires.”

Food recalls

Food recalls are handled by the Food Standards Agency (FSA) in England & Wales
and by Foods Standards Scotland (FSS). In 2015 they were together notified of and
investigated 1,514 foods, feed and environmental contamination incidents across the UK. The four largest contributors to the total number of recorded incidents in 2015 were: Pathogenic micro-organisms, such as salmonella, (18%); allergens (14%), chemical contamination (12%); and residues of veterinary medicinal products (8%).

Meat and meat products (other than poultry) were the most common food type (254 incidents), followed by shellfish (107), fruit and vegetables (97), cereals and bakery products (87) and milk and milk products (70).

If you do injure yourself using a consumer product or become ill from consuming a foodstuff you should contact the seller/manufacturer of the product and notify them of the problem.

You can also contact other agencies responsible as MSAs for the relevant area – such as, Trading Standards, Electrical Safety First or the relevant local authority (in respect of alleged food poisoning) who can carry out their own investigations.

Legal rights

As for your legal rights, Gavin Reese from RPC explains: “Depending upon when the item was purchased, you can either bring a claim under the Sale of Goods Act 1979 (for items purchased prior to 1 October 2015) or under the Consumer Rights Act 2015 (for items purchased after 1 October 2015) on the basis that the goods are not of satisfactory quality and/or fit for purpose. In addition, it is necessary for the product to carry appropriate warnings about the use of the product or, in relation to food, its ingredients. Failure to provide either warnings or confirmation of the ingredients which give rise to injury can give rise to a civil claim for damages.”

If you don’t take a product back following a recall, or allow it to be repaired, and are subsequently injured by the fault that you were notified about Reese states that you’ll not be entitled to make a claim in relation to that injury. “However, if you sustain an injury as a result of a different fault which is unconnected to the notified fault, even if you refuse to return the product in relation to the notified fault, you may then be entitled to make a claim,” he adds.

Nevertheless, while around 400 products are recalled each year, only 10-20% are returned by customers with many remaining unaware that certain products are in their homes and are potentially unsafe.

Therefore, Electrical Safety First, which specialises in consumer protection and product safety, advises consumers to always register their electrical appliances at this website: ‘Register My Appliance’. (

Useful websites to check for recalls

Here are some useful sites to check for recent product/food recalls:

For all products:

Chartered Trading Standards Institute  (

For electric goods:

Electrical Safety First (

For non-food products:

EU Rapid Alert System for dangerous non-food products (RAPEX)  (

For foods:

Food Standards Agency (FSA) (

Food Standards Scotland (

The EU Rapid Alert System for Food and Feed (RASFF)


For cars and vehicles: 

Driver & Vehicle Standards Agency

Revenge of the Killer Zombie Government


Killer ZombieOur ‘Their’ UK Government is clearly incompetent, too ideologically obsessed with cutting regulations and implementing muddle-headed, ’balance the books’ austerity to care for us peeps.

That much we know after Grenfell Tower fire burnt down the last remaining veil hiding the Tories’ duplicity and selfishness. The exact number of dead in that fire is probably well into triple figures – but don’t expect a realistic death toll until the heat of the summer is long past. Tempers might combust and the establishment don’t want their stage-managed democracy torched by the angry masses.

But I digress: up and down the country most people can increasingly smell the stink of this Tory Government’s rotting corpse. With every passing week the stench gets stronger. Even the DUP’s futile attempt to give it the kiss of life won’t revive it.

What is especially shocking is that this Zombie Government cares more for the dead than the living. Theresa’s May’s wet dream would be the death of Corbyn. I imagine she’d happily splurge on a state funeral if it meant her failing grip on the cliff edge of power became a little tighter. She might not be alone in twisting and turning in orgasmic delight at such a fantasy – but Boris doesn’t kiss and tell in public.

How do I justify that statement? Well, first I’d cite the ‘fact’ that I believe it to be true. Okay, that’s too weak – though I think you may believe it also.

Secondly, they’re doing little to prevent pollution from diesel vehicles that is sending many to an early grave and damaging the lungs of children.

Lastly, what else can explain the fact that, while •thousands are injured and many killed in road accidents every year caused by driver fatigue and inattention, ‘our’ Government is doing little to encourage the adoption of technology that could drastically reduce those numbers.

Yes, that’s right. The technology to warn drivers when they’re falling asleep at the wheel or distracted (for example, by using a mobile) exists.

Yet the Government does nothing to encourage its adoption: it doesn’t test it or mandate it on UK roads.

Noblesse ought to oblige the Government to do the decent thing but this mob in power don’t give a fig for the living.

• According to figures from the Department of Transport, in 2015, driver distraction was cited as a factor in 2,920 crashes, which resulted in 61 fatalities and 384 serious injuries. Similarly, driver fatigue was a contributory factor in 1,784 car accidents in 2015, resulting in 58 fatalities and 331 serious injuries.

Is Seeing Machines a takeover target?

Seeing Machines interims yesterday were slightly disappointing in so far as Fleet sales have yet to take off, although they are progressing.

I’m not going to rehash the numbers here, except to say that with nearly A$40m in cash it isn’t in any immediate danger of needing a fundraise to fund the further development of Fovio.

My hope is that the V2 version of Guardian which apparently costs around US$625 vs US$1000, together with Mix Telematics’ product incorporating the integrated SEE system should boost Fleet sales. I anticipate both will be ready within 3-6 months.

Still, I could be wrong about the timeframes and therein lies the risk. Although the spending on Fovio is capable of being scaled back SEE is trying to grab OEM automotive market share in the hottest sector of the automotive market. The funding to cover this is intended to come from Fleet and Mining sales.

Only if Fleet doesn’t scale up and make a substantial contribution, might SEE require a further fundraise before it reaches profitability — unless it chose to scale back spending on Fovio.

That said, I don’t expect this will happen. I believe that an imminent deal with Progress Rail, along the lines of the it struck with Caterpillar should provide short term funding to avoid even the slight risk that they might need to raise more money further down the line, before it becomes profitable.

That a deal with Progress is close at hand was confirmed in the interim statement yesterday, when SEE stated: “The company is in final negotiation stage for a global agreement with Progress Rail. We expect an agreement to be in place during 2017.”

Lorne Daniels

Analyst Lorne Daniels, in a note issued yesterday from house broker finnCap, reduced his sales estimates for Financial Year (FY) 2017 to A$13.4m with a pre-tax loss of A$33m, with estimated sales of A$52m for FY2018 and a pre-tax loss of A$17.3m. Only in FY 2019 is SEE forecast to deliver a pre-tax profit of A$2.8m on sales of A$117.8m.

I’d urge caution on the numbers as there are a lot of unknowns, but the direction of travel is clear.

More importantly, I think investors need to appreciate the bigger picture here, as Lorne Daniels eloquently stated:

“The struggle with Fleet sales is disappointing but solvable and should not detract from the overall focus on the goal Seeing Machines is working towards. While new competitors like Tobii, SmartEye and EyeTech are seeking entry to the market, Seeing Machines remains well ahead in terms of product development, routes to market, experience and proof of success in the field; already deployed in thousands of mining vehicles where its rivals can point to no real-world use at all. Seeing Machines is deliberately investing heavily to capitalise on its leadership by deploying its cheap and easy to adopt SiP solution. This will entrench its market leadership across a wide range of operator monitoring markets but primarily that huge automotive market.”

Nevertheless, as SEE’s share price languishes at a pitiful 3.5p, despite all the progress made in a variety of end markets, the company is easy prey for a speculative offer.

Indeed, given the recent purchase of Mobileye for $15bn by Intel, you have to wonder how long it will be before one of the big players (perhaps Google, Apple?) will make Seeing Machines an offer they can’t refuse.

Lorne Daniel estimates that applying the 42x sales multiple (on which the Intel bid for Mobileye was based) to Seeing Machines’ 2017 sales forecast provides a valuation of A$563m (£353m) or 24p a share.

I’m sure that would satisfy many private investors frustrated at the current share price. And yet…apply that to the projected sales for only one year later in 2018 and you end up with A$2184m (£1,370m) or 92p a share.

In my view, a little more patience is required while realising that investing isn’t risk free.

The writer holds stock in Seeing Machines.

Seeing a CES bonanza for Fovio

This year’s CES show in Las Vegas has demonstrated strong interest in driver monitoring systems (DMS), from automotive manufacturers and their Tier 1 suppliers. All good news for Seeing Machines’ Fovio division, which is fast becoming the dominant supplier of driver monitoring systems to guard against driver fatigue and distraction.

It was at CES in 2015 that Seeing Machines first showed its driver monitoring car technology with Jaguar. In addition, Seeing Machines has confirmed that Bosch, Takata and Volkswagen are showcasing Fovio tech at this year’s CES.

  • Bosch’s vehicle demonstrates new intelligent driver interaction capabilities enabled by Fovio
  • Volkswagen demonstrates a vehicle cockpit concept with integrated Fovio DMS
  • Takata demonstrates steering-wheel integrated DMS

I think it is only a matter of time before many other OEMs and Tier 1 suppliers are linked with Seeing Machines as the auto industry introduces advanced semi-autonomous vehicles, then fully autonomous vehicles.

As Mike McAuliffe, ceo of Fovio has noted: “We’re seeing a groundswell of demand in the industry for our Driver Monitoring technology.”

Tesla, Jaguar, Land Rover and Porsche are all marques that I personally think are likely to adopt its technology. For instance, Elon Musk would be in ‘ludicrous’ mode if he didn’t appreciate what Seeing Machines DMS could do to enhance safety features in his cars.

Ludicrous valuation

What is undeniably ludicrous is that this stock languishes at a market cap of £45m when it is about to crack not only the auto market with Fovio but the fleet market with its Guardian product. (Caterpillar liked its driver monitoring product for the mining industry so much it bought the whole operation in return for an upfront payment and ongoing license and royalty stream for Seeing Machines).

Seeing Machines now has only to lie back and wait for the money to roll in from the Caterpillar sales team. Similarly, holders of this stock who hold it for a couple more years should make a stellar return.

According to projections from Lorne Daniels, a well respected analyst at house broker FinnCap, Seeing Machines will deliver sales of Aussie Dollars 141m (£84m) in 2019 with pre-tax profits of A$22m (£13m). I expect this figure to be revised sharply upwards along with his target price of 12p by the end of this year.

Any lingering doubts about the take up Seeing Machines offering in the fleet space were certainly dispelled with its tie up with Mix-Telematics, a global telematics provider in late December.

Following its fundraise this month, I’m convinced Seeing Machines is set to rise steadily.

However, don’t take my word for it. Do your own research and then make your own mind up.

The writer holds stock in Seeing Machines