The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Paul told us at last Octs Town Hall that we only know we have won an RFQ once the prospective client advises us of our success & we have been advised that G3 will be launched after 30/6 so shouldn't be a surprise if it is.We will only know Auto numbers for Q4 by early Aug so we (including Martin) will hope for a good Q4 but won't know until figs published.Martin obi sees weekly & monthly accounts & I assume his recent small buying indicates that we remain on track to at least meet expectations -nothing more & (hopefully) nothing less.
We will all be relieved when G3 is released & contract details announced -until when our SP continues to stagnate
SEYEs small (& undefined) win for Nordic countries is great for them but unlikely to make any difference to us as the global market is massive & we will hopefully have put ourselves in a good position to win a significant % of that part of the market which we want & our collaboration with Mobileye & others may help us win some of the rest
Many of us long termers will only exit in the event of a takeover, the beauty being that we will never know what we may have been worth-unless,like Mobileye, the acquiring company does an IPO a few years down the line.I am sure that some here would gladly accept 15p to give an honourable exit,which would give many of us a respectable profit over the period of our involvement.I have been for over 10 years,believe in our substantial potential & that we must be close to the inflection point which will result in a re rating - based on a number of major events which could happen soon.
Ever the optimist & still buying !
SEYE & ourselves are certainly suffering from lacklustre SP performance but theirs is more understandable as their recent raise is unlikely to cover them to breakeven, especially if they have low margin/loss making engineering works to be done in respect of their recently won contracts.Tech generally has suffered majorly over the last 2/3 years & pre profit companies have suffered most.Lets hope we remain on track for the launch of G£ ( any time after 1/7),we announce 1 or 2 major aviation contracts & announce some of the now long awaited Auto RFQs which Paul expects us to win.
We dont need cash but we need the wider investment community recognising our unique position within a new tech industry & our substantial potential ,thereby resulting in their buying our shares in market & forcing a re rating.
News of tangible progress is what will drive our SP- ie RFQ wins,new contracts with numbers attached,G3 launch with related contracts,increasing revenues, reducing losses,bank balances at least as expected or better - or news of stakebuilding
I would imagine it is our substantial fall over recent months while being confident that we are trading well & our US & Japanese divisions will hopefully be growing strongly-hopefully a no brainer for him as Plus as been one of his best investments I would expect,with profits & dividends well in excess of £150mill
Thats how some here have built big stakes over many years but long term investors have shown great patience & tenacity & are now looking forward to their commitment being rewarded,the catalysts required for a re rating being-
1)Award of more Auto RFQs,including the 2 or 3 big ones
2)Launch of G3 & ,ideally, the announcement of some decent sized post production line contracts in the volumes referred to at Octobers Town Hall + confirmation of any deals under discussion with Mobileye
3)Confirmation that Auto licence revenues continued to increase healthily over Q4
4)Aviation contracts showing some of the revenue from the projected 20 years $720mill +
5)Confirmation that DY23 is ahead of expectation would be useful & that break even is expected sooner than expected
6)Confirmation that Paul has taken up all of his options at 4.41p without selling any shares.
Not too much to ask-but we must be closer to the real inflection point based on revenues & cashflows than ever before.
Dont forget Lombard adding too -they all sit on the same Board & have access to the same progress reports/projections ( whether official or unofficial).
Very encouraging to see Kate buy again ,confirming her confidence in our prospects
Very solid ,exceeding expectations & £5mill cash-no complaints
Extremely positive & despite brokers/analysts currently valuing Aviation at Zero, there must now be substantial value there,although I appreciate that putting a number on it is the tricky part.
An additional & intangible value emanating from this deal is the massive increase in our credibility ,having produced a techie product which one of the largest companies in the World has partnered with.Surely more IIs will be looking carefully @ SEE now wondering whether there now be a short term opportunity to achieve a superb return for their investors-especially if we are no longer independent by 2025
Fair comment David W .I thought yesterdays RNS was terrific news as it validated Pauls claims that our Aviation division is a viable 3rd leg to our business & we now need to await the first Aviation deals from which we will earn royalties.News that G£ will be launched on time would be a major positive ,from my perspective, but based on past experience ,unlikely to result in a significant uplift & that would probably remain the case if we announced 1 or 2 major auto RFQ wins.However should the last 3 events happen the building blocks will then be in place for our revenue to increase & ,hopefully, our profitability.
Our expected FY24 losses were $6.6million,now reducing to $3.1 million following the Aviation deal & it would not take much upward traction for us to achieve or exceed breakeven in FY24,depending on future contract wins.
If we continue to sign the contracts across our 3 divisions our revenues will increase,we will achieve profitability & our SP will improve -we just have to be patient for a while longer-but we must surely be close.
Fantastic news on every level adding significant value & a massive endorsement of our industry leading technology.
SP can do what it wants today but my view is that this is very clear evidence of vindication of our patience & building decent holdings over many years.
Good points Majorem & the reason you are staying in is that if you have conviction regarding 30p by 2025,there arent many other investments out there,about which you are familiar & have belief,which could X5+in 20 months.If it happens our IRR will be exceptional.