Seeing Machines storms CES

All the news coming out of CES is very positive for Seeing Machines and I’m more confident than ever that it’s on target to take 75% of the global DMS market over the next few years. (Naturally, Seeing Machines itself and its broker Cenkos prefer to state a target of 30-40% publicly).

The tie-up with Qualcomm was probably the highlight of the show for me and it’s great to hear that they’re both working with a “global premium automaker”. It has been suggested it is a new OEM, if it is I assume a more detailed RNS will eventually be published.

Yet the partnership with Qualcomm, apparently at the latter’s instigation, may also be much more significant than many realise. It opens the possibility of marrying industry leading eye-tracking with chips that can go inside mobile devices and VR/AR headsets. It is potentially a huge opportunity and some speculate that a lucrative licence deal is possible for Seeing Machines. (If so, let’s hope it arrives sooner than the “imminent” Aviation licencing deal that we are still waiting for!).

Further out, robots/cars should soon be capable of displaying empathy using eye-tracking that can also interpret cognitive load/read facial gestures.

With EU safety legislation now law, and other countries set to follow Europe’s lead, the near-term future is increasingly bright for SEE. Indeed, this is a company that should be worth billions right now.

Volvo

Strangely, though, there has been silence re. Volvo. My industry contacts tell me it has finally decided who will be supplying its DMS and I’m pretty confident it will be Seeing Machines as it’s the only system that can accurately tell if a driver is incapacitated – a feature teased by Volvo in early 2019.

I expect it will first feature in the 2021/22 Volvo XC90 but Volvo are staying tight lipped as are Seeing Machines and the likely Tier 1, Bosch.

While the share price has been motoring, the next trading update (expected in a week or so) should provide further proof that fleet is set to comfortably beat full-year estimates.

This is a stock on the move and I’m increasingly confident that a huge re-rating is just a matter of weeks away.

The writer holds stock in Seeing Machines.

3 thoughts on “Seeing Machines storms CES

  1. BMW was willing to let Seeing Machines get some “credit.” Qualcomm too. Veoneer three. Hopefully, this is a preview for more flexibility and transparency into Seeing Machines’ success!? I hope the update helps the stock put the 6-pence level in the rearview mirror soon and forever. If I were them, I would try to “pace” the releases a couple weeks or so apart.

    My wishlist:
    Interim update (mid-January)
    OEM announcement ( as soon as able)
    bDMS update
    Update on Aviation
    Update on Fleet
    Update on Off-road & or Rail
    OEM announcement(s)
    News that the company is considering listing on a more mature exchange (dual-listing) – especially if Brexit anxiety continues
    Car model release(s)
    Fleet Progress – with emphasis on success of insurance tie-in
    Human Factors update

    Just my opinion, because in the absense of news, this stock, on the AIM exchange, just bleeds lower…

    This chain of news could get us close to June which would be another fundamental full-year results update? Which hopefully has an update to guidance and EBITDA that I believe could show another spectacular year pf growth for the year ending June 2021…

    Generally, I sincerely agree with you on valuation, and view Seeing Machines as a unicorn in disguise… I just hope they don’t get taken out by Qualcomm ($12B+ in cash available) or Xilinx ($2.5B in cash) or a Tier 1 supplier at a much lower valuation first!? Also, Broadcom has $5B+ in cash… Nvidia has almost $10B.

  2. Did anyone notice BOSCH Driver Monitoring System (DMS) won a CES 2020 innovation award?
    I’m assuming Seeing Machines is involved?

    • Yes, SEE has a long partnership with Bosch and considering it will be based on one camera, only SEE could do this and offer very high availability

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