‘Covid-19 ate my bonus’

While I’m naturally disappointed that Coronavirus has induced another revenue warning at Seeing Machines, it isn’t a great surprise. That the CEO will forgo some salary (along with others) as welll as a huge bonus seems sensible under the circumstances. Well done.

I feel for those hard working employees who have been sacrificed. Hopefully, they’ll prosper in the future.

My firm hope is that the appointment of Michael Brown (Fund Manager at Volantis 1798) to the board will act as an impetus to act in the interests of all shareholders. I’m certainly bemused that after umpteen fund raises it has taken Covid-19 to impel the board to “restructure to improve its focus on profit in the three business units’. (A bit like Boris Johnson getting plenty of PPE into hospitals and care homes after Coronavirus dies down.)

What keeps me invested here is the technology and the regulation that is driving its implementation. I firmly believe Seeing Machines will bounce back when some of the delayed contracts are announced. Until that happens I will look like a mug, of course.

Also, the launch of the Mercedes S level and the Ford F-150 (featuring SEE’s tech) this year should bring a PR boost to the company. 

For any tempted to despair, I would urge them to remember these wise words from Philip Fisher: “The stock market is filled with individuals who know the price of everything, but the value of nothing.” 

The writer holds stock in Seeing Machines

5 thoughts on “‘Covid-19 ate my bonus’

  1. Which contracts do you believe have been pushed back because of the virus?

    – Volvo
    – VW or Toyota

    Finally, Do you still believe that SEE is still the supplier of DMS for Volvo or do you think it could well be Smart Eye as Victor has pointed out.

    Thanks

    • My personal view is that the virus has delayed some contracts but legislation coming into effect in Europe means that DMS can’t be delayed any longer. Indeed, I believe Veoneer did point out that one Japanese OEM has brought forward some work.

      I personally believe SEE will win VW and Toyota. I can’t see how Volvo (whose brand is built on a history of top notch safety innovation) could choose anyone but the best (SEE) — unless it was ordered to by its Chinese owners — so I’ll have to disagree with Victor (nice bloke though he is).

  2. Hi Chris, been following your page for a while now 🙂 I hold some Seeing Machines in my portfolio and it’s infuriating how there seems to be so much downward pressure on the stock. I understand the fundamental reasons behind investing, however would just like to ask why do you think the stock is facing such negative headwinds?

    • I think it is due to a variety of factors, including:

      1) It has a long track record of disappointing investors and missing financial targets.
      2) It is still flying beneath the radar of many funds due to its small cap status and point 1.
      3) Global economy is in deep trouble and the transport sector in particular has suffered a slowdown.
      4) People would rather chase Tesla at US$1000+ than get deep value at around 3p.

      I think the investment case for SEE remains stronger than ever.

      With the launch of Ford’s F-150 on 25th June the wind will hopefully change direction. When it officially announces wins with VW and Toyota my faith will be rewarded.

      All the best,

      Chris

      • With the F-150 announcement, it sounds like the technology will not work until over-the-air updates are sent later in 2021. Is this what you expected?

        Also, Veoneer is Sweedish and so is Smarter – has COVID-19 given the inferior option more time to catch up to SM?

        Fleet kms seemed to be climbing at an accelerating rate again. My math thinks they got into the low-end of original guidance range – what do you think?

        Thanks for any responses and I hope all reading this are safe and healthy…

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