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Thanks Lewbo et al,
Stellantis is huge and so was VW. Totally nuts that this stock is 5-6p. GM Ultra Cruise is also using QC - that is a huge contract that I understand has been decided but maybe not signed - or is QC going to unveil for SEE on 22nd September?
https://www.designnews.com/automotive-engineering/gm-employs-qualcomm-power-ultra-cruise-hands-free-driving
As you've pointed out Lewbo, on 22nd QC should reveal much more about the penetration of 'its' system in cars.
I'd urge investors to try and attend the SEE event on the 13th. We need to be there in force to mingle with analysts, staff fund managers and the 'faces' among PIs. If you've got serious money in this it is a no-brainer to attend. We can have a collective debrief after. If you're a novice you'll still learn a lot and the PIs here are a friendly bunch.
I've been looking at a lot of transcripts from QC results and presentations today. It provides a lot of granular detail on the automotive front, re. Stellantis/VW wins - which clearly encompasses not just one or two models or marques but their entire ranges. For example, Christiano Amon makes this clear re. Stellantis in this quote: "And you can see in our design win, for example when Stellantis come out and said, I selected Qualcomm across 14 different brands, it's not about I got this model." The link is here: https://seekingalpha.com/article/4515864-qualcomm-incorporateds-qcom-ceo-cristiano-amon-presents-bernstein-38th-annual-strategic
This in no way has been explained by SEE - nor could it, to be fair. SEE isn't driving these deals but helping QC, among others.
QC can't be in favour of SEE themselves putting auto news out when they want to put a certain spin on 'their' digital chassis system winning everything. Moreover, until PM is given a contract and officially signed it he certainly has no option but to keep very quiet.
That said, when existing contract programmes are massively expanded I don't understand why SEE can't update the market and put that into forecasts. It would help investors better understand the tremendous potential that is baked into the tech.
I'm certainly hoping for more granular detail on wins that SEE have under their belt with QC. For instance, at a Bank of America event, CFO Akash Palkhiwala provided a lot of detail on the extent of the VW win. Here's a link to it: https://seekingalpha.com/article/4517284-qualcomm-inc-qcom-presents-bank-of-america-2022-global-technology-conference
The bit I really liked is this: "And I'll give you an example of Volkswagen, who recently decided to use us for ADAS across all their brands. So they'll use us for the lowest tier brands all the way up to Audi, Porsche and the reason why we are in a great position is we can give them one platform, one software line that can be used across all those cars. And that's going to be unique and differentiating for us as we look forward."
Re. sector consolidation, Safestocks wrote this in June: "The sector is certainly ripe for M&A deals. Even peripheral DMS players are starting to be bought. In fact, one took place late in 2021, with Lattice Semiconductor acquiring computer vision company Mirametrix. The latter has a rudimentary DMS and, according to unnamed sources, went for a ‘huge multiple’ in a private deal. You can see its offering here: https://ir.latticesemi.com/investor-overview/presentations".
The link is here: https://www.safestocks.co.uk/2022/06/29/will-seeing-machines-likely-nasdaq-listing-elicit-a-bid/
The game is afoot.
It can't be long before the three-legged stool becomes a chair. Here's a bit of research that mentions marine from SEE tech wizard Rodney Stewart: https://www.mdpi.com/1424-8220/21/13/4289/htm
Lots of interesting information here for the more technically inclined (please translate for me!)
Nice review Terry,
It seems the slight shortcomings of Activeglide are down to the implementation of SEE tech, not the tech itself. Still, it's way ahead of Tesla and should improve. As we all know, even a basic DMS would prevent tens of thousands of accidents each year.
I'm looking forward to the SEE presentation on the 13th in London.
Who do we think are the players that could potentially bid for SEE? Seems to be a growing list of huge companies that could potentially be interested. For political reasons I don't think SEE would be allowed to go to a Chinese-owned company - more likely US.
- Chip companies must be hot favs, headed by QC. An aviation license deal really would convince one of them to buy SEE to help further diversify revenue streams into aviation. Plus there are moves afoot to exploit marine and consumer applications.
- Given Collins' parent is Raytheon Tech they could be in the frame.
- Tier 1 auto - less likely but possible. Bosch were interested and Magna have a stake.
- Google, Amazon, Apple - they like the tech and must see the potential for SEE tech in consumer apps also.
- Tesla - SEE would help solve an expensive problem. Plus, Elon Musk could use the tech in his robotic venture.
Unbelievable value here.
Will the real Seeing2020 please stand up?....In the meantime, here's a phat track for you and your pal CFP: https://www.youtube.com/watch?v=TB54dZkzZOY
Seeing all these Seeing2020 clones a certain song by Eminem springs to mind: https://www.youtube.com/watch?v=eJO5HU_7_1w
Nice results: shame about the share price. Looking forward to more contract news between now and September 13.
KBW,
I don't know who is selling nor why. What I do know is that this company is the global leader in DMS and a vital part of QC's plans for the future in automotive. It is working with Intel/Mobileye, AMD (Xilinx) etc is used by Waymo and known to Tesla.
Shell took great pains to choose Seeing Machines technology, as did Caterpillar and a host of huge global companies.
Even if a fund manager is selling that is no reason for me to sell. From my own experience, I've realised that most fund managers know less about this company than some of the long-term private investors in it. There is a lot of contract news to be announced that will lead to substantial growth in revenues and profits. The business is doing very well.
Yes, I wish I'd sold at 12p and bought back today. But I didn't for the same reason I won't now. The news I expect to materialise could really move the price up to a record level. That's regardless of any bid.
It surely is up for sale. If it was 4 years ago with Bosch it certainly must be now. Let's hope negotiations (however, casual) deliver shareholders what they deserve.
QC can't let this go to Intel/Mobileye. AMD, Google, Amazon and Apple might also want SEE tech. In the meantime we just have to grin and bear it, putting our faith in Paul Mc and his team.
Qualcomm will give a positive update re. auto tomorrow, I'm sure: https://www.qualcomm.com/news/releases/2022/07/qualcomm-schedules-third-quarter-fiscal-2022-earnings-release
Therefore market makers drop the price to acquire for their clients.
A lot is happening behind the scenes. Make the most of the low share price while the sale lasts.
Shareholder value is ultimately delivered via the share price and dividends. How else are investors expected to benefit?
Certainly, I think SEE management is mainly focused on the business and it is doing pretty well. But it doesn't preclude pushing the share price up with an effective news strategy. Yet, as we've all experienced SEE is actually something SEE is very poor at. VW win announcement was a classic reminder of that.
Informal discussions with multiple chip companies have to be taking place as it is now obvious to all the major players who the leader in DMS is and how important DMS is. I guess PM is waiting for the official pipeline to grow, with Fleet and Aviation progressing and breakeven coming closer , all in the hope of obtaining good value. Maybe QC or whoever, aren't as yet able/willing to stump up the cash (they will get their money back from SSW soon, I think) he and the IIs want, as well as offer up guarantees to the staff? For example, would all those Aussies want to move to the US? Might there be a lock-in for top staff at SEE?
What SEE has failed to realise is:
1) Share price management is a skill, almost as hard as creating algos. However, it is a skill they don't have in-house and they don't appear to understand that. They also lack the skill to find a party that can do it well for them.
2) The stock market is slowly crashing as we enter a global recession. It is going to fall much further and quicker than almost all expect.
3) IIs will get ****ed off/be forced to sell off stocks as the market sinks.
Speed is therefore of the essence. SEE should be putting out news such as Coca-Cola asap. Similarly, with their next Jap win. The time to raise the price is right now.
Chairboy,
Well, maybe I don't know what I think I know. That's also a thought worth considering. That's why it's imperative to do your own research. Had I listened to my instincts over the past 9 years I'd be much richer...lol
Yes Major,
Reality has set in for them, finally. A small win is a consolation price for Martin and, as suggested, I doubt SEE even bid. Doubtless, Martin also knows about SEE's huge Jap win (yet to be officially announced), the contract for which seems to be lost on someone's desk. I am sure they will manage to find it at a convenient time - for them.
As to whether I feel lucky? I'd have to say no given the share price. Though it shouldn't be down to luck. There are a lot of bullets that should have been fired by SEE and yet PM is choosing not to let loose? Why? The market leader by a country mile seems unwilling to push the price into double figures. Something is going on ;) Never mind channeling Clint Eastwood..(lol it did make me smile), this plot is more like Serpico.
You're right to admonish me for my bias. I think if the 'Guardian' angel connection is made in the eyes of consumers it could become much higher profile. After all, didn't people once seek out PCs with 'Intel inside' and yet they didn't prevent accidents and save lives. I guess it really depends on the OEMs though and how they market the feature.
I don't agree about the likelihood of a bid being low. One DMS supplier got bought for high multiples last year. Bosch was seriously interested 4 years ago. Of course, until a bid lands I am wrong.
Hi Schnorrer,
Apologies for being a bit prickly. I'm a bit prejudiced towards newbies...what can I say...lol.
With both like the company, we certainly have that in common. However, I'm shocked that the share price is still so low. I think the regular dilution and unanswered questions re. profitability has held us back in that regard. I live in hope that changes very soon. We're certainly not 'an R&D project', which was one comment a fund manager made to me a few years ago when I suggested he invest.
In any case, I do expect a bid to materialise before long. We had Bosch interested 4 years ago and we're in a far better position now.
Chutzpah,
I have every faith in the business, which is progressing very well. However, the share price has been and remains another matter. Now, you're fairly new here so if you're a PI your urging patience is understandable. Wait 9 years and see if you still remain as patient...lol.