Following the precipitous decline in its share price over the past few months, investors in Seeing Machines are seeking answers.

The decline, initially caused by delays in the roll out of its Guardian Gen 3 product and poorer than expected quarterly KPIs seems to have gathered pace recently. The share price is now at lows last experienced during Covid, with no clear explanation from the company.

A wave of redundancies in the past week, together with a restructuring of its senior management appears to indicate that measure have been taken to address problems. However, a lack of clear knowledge of what those problems are has left much room for negative speculation. 

In this void it appears market makers have been only too eager to drop the price and trigger stop losses, fanning fears among private investors. Fortunately, the company has plenty of cash and there is no reason to fear it is going bust. Yet, management credibility has been questioned by some and investor trust needs to be regained.

What is needed at the forthcoming Town Hall event on April 2nd is clear communication as to what caused the issues with the roll out of Guardian Gen 3 and the subsequent poor sales and what is being done to fix them. Until that is done, the share price is likely to languish in the absence of firm contract news in either its Auto or Aftermarket divisions.

I’m a firm believer in the potential of this company but I do think investors deserve a full explanation.

The writer hold stock in Seeing Machines.