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Thanks for the up-date Beef.
Once upon a time, there was a little green crocodile who was afraid to go into the water. All the other crocodiles would call to him, "Come on in, Alex, the water's lovely!" But the little green crocodile would shake his dusty head and repeatedly say, "That water's too deep! That water's too dangerous! That water's too... too watery!"
The other crocodiles would roll their eyes and shake their heads, because they'd never met a crocodile who was afraid to jump into the water before. So day after day they tried to explain, "But if you want to catch something really, really big, you need to be in here before the herd arrives, waiting, ready to strike."
Alex scampered farther up the bank then turned and shouted, "You poor misguided fools, get out of there quick, before it's too late! Don't you understand water that deep is incredibly dangerous?" He snapped at a fly and, to his surprise, caught it. "Hey look everybody, I caught a fly. I caught a FLY!"
The other crocodiles glanced at each other - and sighed. Then, without a word, one by one they submerged; disappearing from sight as a large herd of wildebeest began meandering towards the water-hole.
On spotting the wildebeest, Alex looked disapprovingly along the length of his snout. He sneered, "Look at those disgusting things, bet they're all going to start piddling in the water and make it even deeper." He straightened his front legs, making himself as tall as he could, then shouted, "You're all disgusting flee-bags!"
A large croc's eyes broke the surface of the water, glowered at Alex, then once more disappeared silently into the depths.
Alex scuttled out of sight and hid behind a large rock. After a while, he plucked up the courage to have another peek at the huge herd of animals who were now drinking from the water-hole. At the very same instant a crocodile erupted from the pool, launching itself at one of the wildebeest. The croc' gripped the animal by the throat and dragged it, kicking, splashing and grunting into the murk of the pool.
Alex turned and fled, screaming. He ran and he ran and he ran - then he ran some more. After several miles he stopped at the crest of a hill, puffing and wheezing. He looked back towards the green trees and lush foliage of the oasis which he'd left in such a hurry. He shook his head, "I wonder if all crocodiles are as stupid as those idiots? That crazy wildebeest could have killed us all!"
Now Alex turned and scanned the opposite horizon. A desert of arid scrub-land stretched as far as the eye could see. He coughed a cloud of dust, then set off into the desert. "I'll soon find a better water-hole... preferably one without water in... and no stupid crocodiles in, either..." he laughed, "Oh, and no piddle... definitely no piddle in.”
In the following story, any similarities to anyone dead or alive on this board are purely coincidental – honest...
Be with you in a minute...
The year 2020 is the date Driver Monitoring Systems will begin phasing in to production cars, and it's a date, to the unwary, that might seem a long way off. However in production terms for the auto industry, 2020 is the equivalent of next week, and if you need proof of the urgency felt by the car manufacturers of the world... have a think about that recent $50 million contract from Ford. That deal took, from start to finish, just three months. That time-scale tells you all you'll ever need to know about investing in Seeing Machines... well, that and the previous contracts from BMW, Mercedes-Benz and General Motors. P.S. Today I are mostly liking Disruptive Technology. P.P.S. And this,the auto market, is only one of the very tight strings on Seeing Machines' bow.
The very brave souls who hold a negative position on Seeing Machines would appear to have missed one very important date: 2020. That date is when DMS will begin phasing in to production cars, and it's a date, to the unwary, that might seem a long way off. However in production terms within the world of the auto industry, 2020 is the equivalent of next week, and if you need proof of the urgency felt by the car manufacturers of the world... have a think about that $50 million deal from Ford. That deal took, from start to finish, just three months. P.S. In our home, being Caught Short means nothing more than having to nip to the toilet.
The best research I have seen was the Cannacord note, that helped clear out the Institutional seller at 3p in November and cleared the way for the fundraising (for those without the history an institution that owned 12% plus changed investment manager and became a seller due to a change in investment criteria). For an understanding of the size of the automotive market the Redeye research on Smarteye is useful and also it highlights how far behind one of our competitors is if you ignore all the noise. The reality was that as soon as Autoliv had a chance they dumped Smarteye for See. The history behind that was See was stuck in an exclusive with Takata, whilst it got them into GM it put them 3 years back with the other Tier 1�s. The progress with Tier 1�s since highlights the quality of the product. What differentiates and what is the barrier to entry? A key point is what amounts to millions of hours of real life data which comes from years of monitoring the CAT trucks and over the last couple of years Fleet. This technology has been successfully deployed for a number of years now, it is proven and its algorithms are supported by on road data. It is also across all transport sectors. Recent v significant changes include: Potential EU legislation mandating DMS, even if EU does not go as far as mandating it, it is highly likely that EuroNcap will require it for 5* rating. Launch of new fleet product more cost effective etc. supported by insurance industry who have as good as said that if fleets have See technology installed that could qualify for up to 20% discount. The CHIP - this is huge for Auto as this is the key to enable a relatively small company to deploy in scale. See is funded. There is potential for great news flow, Autoliv�s investor day presentation has been referred to before and is worth reading to get a feel for what could flow from them. New auto announcements likely (that is just from Autoliv) After the year end (30 June) expect to see positive news on Fleet. What is great about this share is that the key investment in the Chip and upgrade in guardian has been made, the technology risk has gone and the margins are significant. There is a regulatory imperative for OEM�s to deploy the technology and competition is light. As referred to above the barrier to entry for the competition is that none will rival the hours of live real time data. I haven�t mentioned rail, airlines, health and general AI. What valuation I wonder would this have if listed on Nasdaq?
Tim, great summation. Now, thinking tactics, if this board gets really busy can I ask you to repost your write-up at regular intervals throughout the day. It will help potential investors get quickly to grips with where we're at. It will also be handy when the inevitable gremlins turn up and announce the company is doomed. Also, I realise you will not be available all day every day so, with you permission, could I ask other members of this board to copy and paste your comments if you're not around? In general, it may be beneficial if anyone else with a good summation of SEE could do likewise with their research. Best, Sandy
Yachty (and any other newcomers), You'll see the following text at the beginning of each RNS issued by Seeing Machines. It's such a familiar statement that, I would imagine, is barely noticed these days. However, if you stop for a moment to absorb the meaning of those words, you may discover that the potential of this business is far greater than any of us realise. "Seeing Machines Limited, an industry leader in computer vision technologies which enable machines to see, understand and assist people..." Best, Sandy
� when a four year long fuse f-i-n-a-l-l-y reaches the explosives!
The Grumpy Troll. Once upon a time, there was a grumpy and very lonely troll who lived on his own under an old stone bridge. Although the troll used to get along with the villagers downstream quite well, now none of the villagers liked him because he was always peeing in their water supply. The nasty troll would laugh and laugh as he piddled into the stream from the top of his bridge, making the villagers very cross. One day a delegation arrived from the village and, one by one, they told the troll how horrible he was. This made the troll very angry; why did nobody like him? He was the smartest and cleverest lonely troll under that bridge. He was so clever that he could even pee farther than his own shadow! As the days ticked by, the grumpy troll became even more grumpy. How dare those villagers tell him not to pee in their water! So he sat down on his favourite rock and made his brain do a big think. This think - although it made him feel quite dizzy - eventually began to make the troll feel much happier. You see, his big think had conjured up a plan: an incredibly clever plan; and it was a way to punish all the villagers for telling him not to pee in the stream. The troll smiled a wicked smile, then began to put his master-plan into action. He built a dam where the water exited the bridge. It was a really good dam and slowly it began to cut off the water supply to all those annoying people downstream. The troll stood under his bridge and watched as the water level began to rise. He began to giggle. He clapped his hands and jumped up and down with excitement, being careful not to bump his head on the bridge above. As the water crept up around his knees - his giggle turned to laughter. As the water rose up around his big fat belly, he was in hysterics; he would show those silly villagers who was boss. The water level inched higher and higher, and the troll laughed harder and harder. Then, as the water crept, first, over his mouth, then up to his nose, then eventually covered his whole head, the troll discovered how annoying it was to be trapped inside his very own incredibly clever master-plan.
Alex, Thank you, as always, for your kind and timely reply. Strangely enough, I was thinking of you just last week (yes, I know - how weird is that?). It all happened on Wednesday... or was it Friday? Well, anyway, I was standing staring at my favourite wall again, without a single thought in my head when, quite annoyingly, I sensed one sneaking up on me. At first I tried to ignore the little space invader... as any normal person would. However, this niggling little thought just wouldn't go away. No matter how hard I tried not to think it, it tried even harder to make me think it. Eventually it tricked me into thinking it by pretending it had forgotten itself. Then, before I could remember not to think it... I'd thought it! Anyway, turns out, it was asking who I wanted to be when I grow up. I found this question extremely irritating as, during an entirely different thought I'd been trying to avoid like the blazes the previous week, which was the same day I discovered Hemorrhoid (my pet budgie) at the top of his ladder threatening to jump off again, I'd already decided I wanted to be Nelson Mandela... or was that Mother Teresa? But now, would you believe, I discovered the name of that North Korean tyrant Kim Jong-un was also bouncing around inside my head - and it was at that exact same moment an entirely different thought made me think of you! But anyway, since you're here, Alex, I would greatly value your advice on a completely different matter. You see, I've always been a bit miserable, humourless, and grumpy (I'm sure you know what I mean). I am trying really hard to improve, but every time I feel I'm getting somewhere I revert back to my old ways of being rude to people for no apparent reason. The thing that's most annoying, though, is that once or twice I've actually been caught bang-to-rights and been outed as a two-faced little toe-rag (have you any idea what this feels like?). Anyway, any tips you can offer on how I could become a better, more tolerant and humble person would be gratefully received (along with any suggestions on how to deal with a very depressed, pain in the backside, budgerigar). In the meantime, I'm going to have to do more of that thinking stuff and decide exactly who I want to be when I'm a bit older: Nelson Mandela, Mother Teresa or... oh, who was that other little guy again? Come on, help me out here, Alex... grumpy, humourless, really gets annoyed when people don't agree with him... Ah, but not to worry, I'm sure Ill be reminded who he is... very soon. Best wishes, Sandy.
Guys, I gather there's a wee bit of 'white noise' slightly irking some members of this board. Well, try ignoring it. You see, as far as this company goes, Mr Market is catching on, and our share price is telling you that story. Something else that points to how the Seeing Machines tale is unfolding is that very large Writing on the Wall - you know, that German graffiti. Luckily (in this instance), you don�t have to be able to read that language to understand what is written. When top-notch car manufacturers send a very clear signal to the rest of the industry that the kit they are installing is the best, bar none, well, sit back and relax. Logic points to more of the same action soon, and the time-line is tight (the actions of both BMW and Mercedes-Benz has informed us that decision time for their industry here). Something else you should remember (re - Guardian) is what the man from Zurich Insurance said some time ago. He's never seen anything like the speed of up-take of this kit. It's also a key factor which will allow a haulier to access a 20% discount from his insurance bill. A potential 20% discount! Re-arrange this well-known phrase or saying: carrot, a, giant dangling. Anyway, when major companies begin signing contracts, parting with big bucks and announcing to the world how good Seeing Machines' kit is � you can definitely ignore that irksome white noise.
Prophet Warning of Profit Warning Mean Prophet Trouser Big Fire.
In the early 70's, on the island of St Vincent in the Caribbean, I found myself helping a couple of geologists on the island's volcano. At that time, the rim of La Soufriere was about one mile across and at the bottom of it's crater a large lake of green water had formed. In the middle of the lake an island had begun to grow (very slowly), hence the geologist's interest. We took a rubber dinghy onto the 'water' and visited the island. It stank of sulphur and was unpleasantly hot underfoot. The geologists knew this volcano was going to blow, but they also understood they'd need wee bit more 'boinginess' in their seismic readouts before that happened. Well, guess what? Every time I ponder the EU's new ruling and then contemplate the ultimate value of Seeing Machines' I.P. my thoughts go straight back to standing in the middle of that island - in the middle of that lake - in the centre of that volcano. It's not a matter of if: it's just a matter of when! P.S. La Soufriere did erupted again, in 1979 (so just got out of there in time).
I kinda guessed from your comments at the time, but couldn't pluck up the courage to ask you to drive a stake through my heart... "... Yes, I know, dear, didn't she look lovely. Oh, sorry, now I've dribbled on the soft furnishings!" Thing is, when I saw the story on the big S developing their own autonomous car software, I assumed... well, you know all that already. As for smoke and mirrors... hang on, she's coming back with wads of kitchen roll... "Ah, thanks, darlin'. These things always remind me of our special day, and how I really should have been paying more attention - especially to the 'Until Death Do You Part' bit." ... The RNS on 24th Oct specifically states Euro NCAP will require a DMS - even in Highly Autonomous Vehicles. Anyway... we've got lots of other haddock to batter.
... there you are! Can you confirm something which it looks like I've missed (although I know you've now mentioned it twice in response to my scribblings: with regard to Samsung, can I assume you met Ken at the recent investors meeting and he told you our flirtation with Samsung was over? Once I understand for sure, I can stop shooting myself in the foot with references to them. Best, Sandy. P.S. If your news is bad, I'll just tell my other half my tear-streaked cheeks are because I've been watching The Wedding.
Fleet cont... If I could ask you to hold that thought for a moment; that thought where an insurance company is stating it's never seen one piece of equipment - our Guardian system - being adopted by the haulage industry so quickly, and then tie that statement back to the percentage growth figure of Guardian sales from last year (360%), it might just be a clue as to the direction of Guardian sales for our next financial year. Now, wouldn't that be nice? And remember, we're operating in an addressable market for Fleet which is expected to exceed A$1.5 billion within five years, with Seeing Machines recognised as the pioneer in this market...' As I mentioned previously, I think our Fleet business is going to be absolutely, amazingly, incredibly, utterly... okay. https://www.youtube.com/watch?v=865T8a23Gtc
(Abridged version) Robbiefalcon, on the link below speaketh the Man from Zurich Insurance... his bit starts around 12 mins in - I think. Finally, and I can't stress strongly enough the potential importance of this next piece of information, have a look a the video in the link below. The last speaker is Peter Johannson, Senior Risk Engineer with Zurich Insurance. Now, I believe what Peter tells us will have/is having a large effect in driving the up-take of Seeing Machines' Guardian system, and I believe it to be a little nugget of pure Seeing Machines gold. Peter explains how the Zurich Risk Grading system works. He then tells us that if a haulier can gain a risk rating of Excellent from Zurich, that haulier can expect a twenty percent discount from his insurance bill. For a risk rating of Good the discount falls to ten percent, until we reach a Poor rating where there's a ten percent increase applied. The man from Zurich also says something else which, as investors in Seeing Machines, should make our little ears prick up. Here it is: "I have never seen a gizmo/device hit the market and be taken up at a rate of knots that Seeing Machines have" (the Guardian system). He then concludes his presentation with this statement: "Seeing Machines (Guardian system) is a powerful safety management tool that strongly influences the Zurich Risk Grading (of any given haulage company). Zurich insurance premium pricing is strongly influenced by the Zurich grading results. So what old Pete is saying, if I can paraphrase him, is this. With Seeing Machines Guardian system fitted to a truck or fleet of trucks, if that fleet owner can eventually gain a Zurich Risk Grading of Excellent, (which, I stress again, can only be achieved with a Driver Monitoring System such as Guardian fitted), Zurich will offer a twenty percent discount to the owner of the truck/s (can you see where this is heading?). Now I don't know what a twenty percent discount would amount to on an average fleet of trucks (is there someone out there who could help?), but having one fifth lopped off your insurance bill is going to amount to a lot more than a hill of beans. It might even be the reason, to re-quote Peter, he stated: "I've never seen a gizmo hit the market and be taken up at such a rate of knots." Continued above...
(Abridged from last night's entry) Mobileye! So, here we have Intel buying Mobileye for many billions of dollars, the reason of which: "... positions Intel as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles." But now we also have that very interesting statement from Euro NCAP (RNS dated 24th Oct 2017) stating that every autonomous vehicle will also require a Driver Monitoring System. So it looks to me like for every highly autonomous car Intel/Mobileye are targeting, somebody else is going to be fitting a DMS. Which brings me back to the value of Seeing Machines. Could we possibly be worth anything like Mobileye. Well, to my mind we're addressing the same market and running in parallel. Legislation is forcing manufacturers in our direction and we've already seen GM, Mercedes and BMW buying our DMS kit. So what are we worth? Well, here's a list you won't find on the Mobileye website, and it makes very interesting reading: Mining, Rail, Fleet, Aviation, AI... and the same SINGLE sector the $15.3 billion Mobileye occupy, auto. So now what do you think Seeing Machines is worth? The mind billions... I mean boggles! Best regards, Sandy. P.S. And, of course, not forgetting Samsung!
Mobileye! So we're all delighted with how the auto (cars) part of our business is doing - and, by-the-way, well done to everyone who endured all those years in the 3p wilderness. However, if I could drag you away from your celebrations for a minute or two, here's something to ponder... Mobileye. Over the last few days, I've noticed a few comparisons between Seeing Machines and Mobileye popping up on this board and, undoubtedly, the $15.3 billion Intel paid for that company is a very tasty wedge. But... If you have a look at some of the stuff written about Mobileye's takeover, you'll see that Intel bought it for one very specific reason, and I quote: "The acquisition is expected to accelerate innovation for the automotive industry and positions Intel as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles." Now that's great, but bearing that statement in mind, now look at the RNS from Seeing Machines dated 24th October 2017. In this RNS the company give us the the low-down on what the Euro NCAP requirements will be starting year 2020. You should brush-up on this one and have another read, but here's one snippet that catches the eye (bearing in mind the above Mission Statement from Intel): "The roadmap (Euro NCAP's roadmap) goes further in stating that existing ADAS safety systems can be enhanced by adapting intervention criteria specifically to the driver's dynamic state and further stated that even though it has yet to publish its full guidelines for HAV ratings (this acronym means Highly Autonomous Vehicles), DMS will be required there also." So, here we have Intel buying Mobileye for many billions of dollars, the reason of which: "... positions Intel as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles." But now we also have that very interesting statement from Euro NCAP stating that every autonomous vehicle will also require a Driver Monitoring System. So it looks to me like for every highly autonomous car Intel/Mobileye are targeting, somebody else is going to be fitting a DMS. Which brings me back to the value of Seeing Machines. Could we possibly be worth anything like Mobileye. Well, to my mind we're addressing the same market and running in parallel. Legislation is forcing manufacturers in our direction and we've already seen GM, Mercedes and BMW buying our DMS kit. So what are we worth? Well, here's a list you won't find on the Mobileye website, and it makes very interesting reading: Mining, Rail, Fleet, Aviation, AI... and the same SINGLE sector the $15.3 billion Mobileye occupy, auto. So now what do you think Seeing Machines is worth? The mind billions... I mean boggles! Best regards, Sandy. P.S. And, of course, best not forget Samsung!