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Be careful of groupthink.
Groupthink is when you listen to nonsense rather than reading the Accounts.
Your shares are down 20% over the last few trading days. Do you hold? Do you review again after it drops another 20%?
I've asked the question before, but I will ask it again. Here are the Nasdaq rules.
Nasdaq has stringent criteria for investment protection. These listing rules apply to all companies that want to list on the exchange. The Nasdaq has three tiers. These are:
Nasdaq Global Select Market: The strictest of the Nasdaq tiers attracts companies of international standing. Among the criteria, shares must trade for at least $4 per share. In addition, companies must have a minimum of 1,250,000 publicly traded shares
Nasdaq Global Market: Companies must have at least 1,100,000 shares that trade at $4 or more.
Nasdaq Capital Market: At least 1,000,000 public shares are required at a $4 minimum.
https://www.benzinga.com/money/understanding-nasdaq-listing-requirements
So, $4 at listing is the minimum (for most companies. There are some other rules at $3 and $2 for some companies apparently, but for most, it's $4) . See are currently around 5p. That's a massive consolidation. I'm sure that will make everyone happy.
A higher share price would mean a lower consolidation, but See are on AIM, and the market has decided to not pay a premium for the shares. So, how does the share price get higher to reduce a Nasdaq consolidation? Catch 22.
By my calculations, even at 50p - a ten bagger from here (£2.2 billion or so MC), a Nasdaq consolidation will be about 7/8 to 1.
And if See are at a MC of over $2 billion, then a main market listing in the UK is better. It's FTSE 250 Territory, the goal being FTSE100.
I think the Nasdaq listing is a red herring. I doubt it happens, the numbers don't add up, unless you are happy with a massive consolidation. If there is an alternative way, I'd be happy to know what it is.
Off the back of an 80% rise in 12 months. Yes they hate it.
If it was SEE you'll be screaming market makers are pulling it and taking advantage.
You hard corers do make me laugh.
Market really doesn't like the misleading on SEYE's DMS sales. Share price so far down more than 11% on the day.
Martin will have to man up and explain what has gone so wrong. Doesn't help that he looks so shifty.
Also Affectiva / imotion sales fell. I warned you on that one. 70% of their business - but the boss walked out on Martin.
I hear you. I know they've been consistent on the topic. I will be furious if they raise any more capital via a dilutive AIM offering rather than a IPO/relist on NASDAQ.
FWIW, The new companies being added to the Russell2000 this year have a market capitalization of around $150 million USD... SEE is plenty big enough.
The reason it's important to consider is that it needs to trade on a liquid exchange in order to get a fair value... prior to the inevitable takeover offer(s). Nobody will offer more than a 30%-100% premium to the "market price."
Whereas SEE could probably earn a price/sales ratio of around 6x-8x forward revenues in the US as soon as it becomes profitable. Then get a premium on THAT for the expected growth and IP and high margin...
KBW
SEYE can't last if they don't start increasing DMS sales soon. The lack of sales growth means there is a big problem.
The King is a pauper. SEYE DMS sales were just US$8.5m last year - and static now.
SEE sold 6x SEYE in the same period.
My advice, take care. If SEYE stumble again then I think there share price will collapse.
They already had a big raise before at SEK26.5!
Martin is not up to it. The CFOs don't like working with him. A bit of a mess, imo
SEE ..have a clear path to profitability so let them execute on what business they have captured. Yes we can do with some more contract wins & sure Valeo awards will trickle through to an RNS or two in the coming weeks/months.
Anyone that follows SmartEye will know that they are not to be trusted with their financials or long term ambitions. They continually denied that they needed more money & made a massive u turn weeks after this denial.
*principal
?? PM clearly stated that our focus is to remain on AIM for the foreseeable future so we may as well not bother getting frustrated. It sounds like there have been clear discussions about the drawbacks to moving exchanges, and right now the most pressing goal and principle focus is to drive royalties and cash through the successful delivery of any programmes we are working on (and also deliver same through aviation and aftermarket) - rather than spend time and money moving exchanges. Seems sensible to me. We need a bigger market cap anyway for a US listing.
The AIM100 has now underperformed the Russell2000 by 30% since the end of 2022.
When will we shed this anchor around our necks?
The jealousy here is immense.
SEYE are smashing it and funding the huge orders coming through.
See on the other hand are BETAMAX reincarnate
Https://www.redeye.se/events/991881/live-update-smart-eye-in-light-of-the-recent-capital-raising
Portal to ask some questions for those holding Smarteye as well as See. Or just to be awkward.....
Have taken the lead from CFP and asked for Martin to be removed in light of his continual misleading of market? Am I doing it right? ;-)
Wonderful news that they have had success beyond expectations. Very happy for them. Mazel tov!
Any chance they might actually start selling the stuff? On their turnover numbers they are in danger of slipping behind Cipia.
Smart Eye just announced that we have completed a directed share issue. We were pleased to see great interest from investors, resulting in oversubscription and a low discount.
We realize some people may wonder why we have decided to raise capital at this point.
There are 3 main reasons behind this:
1. This was a smart way to raise capital. After weighing different financing alternatives, we concluded that a directed share issue at this time was our best option. This capital raise comes from position of strength, and we believe the timing was ideal.
2. This capital raise allows us more strategic flexibility. By increasing the financial robustness of the company, we are de-risking Smart Eye as an investment case. After taking this action, we can feel very comfortable with our funding going forward.
3. We have had success beyond any expectations. The last six months have been incredible successful for Smart Eye, with multiple groundbreaking automotive deals won – both as a Tier 2 and Tier 1 supplier. Just this week we announced a major contract with one of the world’s largest truck manufacturers for our AIS #DriverMonitoring System (#DMS). On top of this, we have started winning business for our Automotive #InteriorSensing AI. In order to both catch up with our recent success and to keep winning future business, we want to strengthen our financial situation.
In the video below, Smart Eye’s CEO and Founder Martin Krantz and CFO Mats Benjaminsson offer more detail on the share issue, the reasons behind it, and Smart Eye’s financial strategy.
At 15.00 CET / 10 am ET today, Martin and Mats will participate in a Q&A hosted by Redeye AB to answer questions from investors. The link to the live stream will be posted shortly.
https://www.linkedin.com/posts/smart-eye_smart-eyes-ceo-cfo-comments-on-the-directed-activity-7176842333840162817--CyL?utm_source=share&utm_medium=member_ios
Today it is a bit
87.45 SEK −7.80 (8.19%)today
22 Mar, 09:20 CET • Disclaimer
Where is the explanation of the almost flat sales in Q1?
If this were SEE everybody on here wd be demanding that PMcG shd be shot.
Something is very fishy indeed at the self proclaimed king of DMS. When your sales ae a tiny one sixth of SEE's fovio & Fleet, then isn't it a shocker that SEYE's sales are barely growing this Q1.
Also they didn't raise enough cash - not prepared to admit just how much w cap they need for AIS.
They talk the talk but can't walk the walk.
TIME FOR A NEW CFO
SEYE only a few weeks ago said that they didn’t need to raise more money and break even was on track. This latest Redeye report remains optimistic regardless…
https://www.redeye.se/research/991883/smart-eye-sudden-directed-issue?utm_source=note&utm_medium=email¬ificationId=72d11363-ca47-42f4-a99a-03d6dfd892bd
🎉 this makes me feel better about all the money ive lost.
You were correct ! Glum news. I'm surprised their SP didn't take a beating on the news tbh...
Wish I didn't read this!
Be great if SEE put a massive RNS out tomorrow to stick it right up them !
Here’s hoping 🤞
Colin Bardem - Spot On once again
#technology suppliers (Seeing Machines, Smart Eye, and Cipia) are all independent, publicly listed small companies having to survive in a world of >5% interest rates and a rapidly rising cost of money. Vital is a path to profitability, matched with significant investment in a continued #innovation #roadmap to ensure technology leadership for the next ten years. Threading that needle will be extremely challenging, and not all three suppliers will make it. Profit centers beyond automotive will likely be the main differentiators to survival, underscoring the importance of strategies in the #fleet and #aviation sectors.
You'll have to pick your own survivors in this market. Capitalism is brutal, but cash is always king. Companies do not die because they make a loss. They die because they run out of money.
Colin Barnden spot on as usual !
Read this & now accept I am right. SEYE are a mess:
Automotive net sales are expected to increase slightly during the first quarter of 2024 as compared to the fourth quarter of 2023, with the reservation that the Company does not have full insight into production volumes or license revenues before its customers report them, which occurs 4-6 weeks after the end of each quarter.
Furthermore, the Company assesses that the cash flow during the first quarter of 2024 will be more negative than that of the fourth quarter of 2023, primarily as a result of extraordinary items as well as accrual effects in the Company’s working capital, of which the latter is expected to have the opposite effect on the cash flow in the second quarter of 2024.
GIVEN HOW TINY AUTO TURNOVER IS AT SEYE - IT IS BEYOND SHOCKING THAT THEY BARELY INCREASED IN Q1 2024.
WHAT IS GOING ON? TIME FOR ANOTHER NEW CFO???
Explains the drop in the week. Would say they won't have an issue getting it away maybe less than 10% disc. My maths says c10m GBP or 150m SEK.