The Next Big Thing.4 May 2024 09:39
What would it feel like to be invested in The Next Big Thing before the investing world realised it was The Next Big Thing?
My guess is that it might be a bit like how we feel right now. In the early days of some of the world's biggest success stories, no one knew for sure they'd succeed. For instance, if you look back at the growing pains of companies like Amazon, Apple, and Arm Holdings (nod to Terry/S2020), the early days of those companies have a lot in common with what we are witnessing right now with Seeing Machines. Early on, most suffered years where their share price did nothing. Back then doubts and hopes would have been voiced in equal measure; brief moments of euphoria would be scarred by disappointment; and tolls would appear, possibly even trying to convince Apple investors that management share buys were (in their distorted version of reality) a sign of impending disaster. So I'm fairly sure things were not plain sailing, even for companies we now recognise as household names.
Our closest comparison to any of these giants would be Arm Holdings. Now I'm not implying that Seeing Machines is the next Arm Holdings (or am I?), but what I will point to is Arm's business model. Can you spot any similarities with that of Seeing Machines? A few minutes research of these two should produce - a smile! Because both their products and business models are strikingly similar. Arm Holdings are the major supplier within their sector; Seeing Machines – leading the way. Arm Holdings license their IP to the world; Seeing Machines - read on...
Licensing your tech to the world only works if the world wants to license your tech. So now, if you're a potential investor, go make a list of the companies supplying the world's auto industries with DMS/OMS, then count how many of those companies use Seeing Machines technology to 'close-the-loop' within their own systems.
Now if we return to the likes of Amazon, Tesla and Google, as previously mentioned, none of them gained immediate success. They were slow burners. Only when the market eventually woke up, screaming, “Here's the next big thing!” did their prices really move. But investors with vision – they were already in.
So here's my prediction for Seeing Machines: as soon as our bottom line shows a profit, we'll get a little tick up in price. Then it'll all go horribly quiet again. The usual suspects will reappear telling us we're all doomed. The share price will slowly sink until – the next set of figures arrive (followed by aviation news?). Then we'll get another up-tick, but this time – heads begin to turn. Outsiders will ask: “What's this DMS thing everyone's on about?” And, “That Australian company... could it be the next Arm Holdings!” (oops, I meant to write: “...it's doing really well.”).
Once that happens, hold on to your hat. Because, as WE'VE known all along, Seeing Machines is - The Next Big Thing!