The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I think the eyes off driving has become a total fallacy for any time in the next 20 years to be honest at this point. People have been pivoting away from it in droves as it's proven to be much more difficult than they were expecting. The systems continue to make elementary errors due to complex situations or changing conditions and the manufacturers could end up being at fault.
The regulatory picture is pivoting to collaborative driving, as are most manufacturers. We are cycling into the middle of the storm now as opposed to being on the edge whilst everyone was focused on L5 systems that have proven to be a false dawn.
Maps "This RNS just gave us the sizzle, the actual sausage is missing"
Paul seems to be a master at playing hide the sausage. On the other hand, Martin has never hidden a sausage in his life but likes to gloat about how big his sausage is.
The SP might be the same as an arbitrary point in time in 2013, but the market cap isn't, and neither is the company position and funding requirements.
As difficult as it is to have been in for quite a while and not yet become multi-squillionaires, the company is in an astounding position, funded to profit and growing. The days of hand wringing and teeth gnashing seem to be over to me, it's now more like waiting for Christmas day, frustrating but exciting.
NCAP do safety testing, but type approval testing (i.e what needs to happen to get a car on the road) can be done by people such as Millbrook as well as others.
For example, my car has never been through NCAP. It's still legal.
NCAP provide a voluntary service to provide a safety rating on vehicles. There is a good reason that manufacturers go to NCAP for a rating, it's because it affects sales directly. Cars have had sales collapse after bad ratings in the past.
Ncap itself is not a legal requirement, however, it is a HUGE selling point and something that does affect the sales success of a car. If you are shopping for your teenage child or your family, are you going to buy the 3 star car or the 5 star car?
Can't speak for how slow the OEMs are being. It could be that decisions on T1 are made and the T1s have essentially got their decisions made but there is red tape to get it announced or something similar. Regardless, DMS specifically IS soon a legal requirement so they can't avoid it and the quality of the DMS is the only real question.
Hi Croc, there is a lot of chatter on SEE but a lot of the volume is in a Telegram channel as opposed to here so the post numbers are a little disingenuous.
You are right though that SEE is still managing to slip under a lot of radars, I'm hoping the quarterly figures are going to start to grab attention as people start to see just how many cars we are getting into and how quickly it's accelerating.
It's another feature that's added to the Magna mirror, so we can certainly be alongside them although I don't think SEE adds too much to a garage door opener.
Incidentally, I have a garage door opener in my car... Shame I don't have a garage door, hopefully SEE can help me there soon.
Paul said previously there would be a lot of consolidation coming up in the industry. Since then even more have entered this space. Does he still see consolidation coming and if so in what time scale?
Automotive revenue is up 139%, NRE up 61%, Guardian installs up 25%, why is revenue only up by 15%?
On our 3 leg stool, is one of those legs producing the majority of deals and opportunities and if so, which one?
We spent a lot on R&D for additional features which we had a fund raise for. I believe this was expected to result in higher price per unit. Where are we with opportunities related to those investments, how far out are the expected RFQ results from those particular opportunities and do we expect a strong uptake of those additional features across OEMs?
Not a good look is it. Cracks finally starting to show. I do feel sorry for the holders over there. Martin and RedEye have been spouting rubbish for years and now it's starting to come out and RedEye are reducing valuation with every results release.
I'm sorry, but 12-15p is the only joke going on here. We can hit that number on relatively little news.
Have you actually looked at what this tech can do, who we are working with and the margins on offer?
Not to mention a lot of big investors would get very little return at that level so who would be selling? Sometimes I wonder why some posters are even surveying so much time on the board, if you are expecting that level of return you might as well sell up, go elsewhere and spend your saved time on a second job.
It's going to have to more than double to get to a total of 400M by 2026. Unless my maths are wrong as well (I won't say it's not possible!)
(Automotive revenue from licensing)
2021 = 2.3M (Actual from results)
2022 = 5.75 (Estimated 250% uplift)
2023 = 11.5
2024 = 23
2025 = 46
2026 = 92 (At a profit of 82.8M)
Total = 180.55M
If on the other hand you go for accelerated growth over the next couple of years followed by a little bit slower to account for a little maturity. I'll also add next to it a conservative 15x PE for valuation of automotive based on 90% margin on automotive royalties along.
21 = 2.3 (31.05M market cap)
22 = 5.75 (77.63M market cap)
23 = 17.25 (3x growth) (232.88M market cap)
24 = 51.75 (3x growth) (698.63M market cap)
25 = 103.5 (2x) (1.397B market cap)
26 = 207 (2x) (2.795B market cap)
Total = 387.55
Sorry for the crap formatting!