Seeing Machines (SEE)

Seeing Machines SEE Logo

An industry leader in computer vision technologies which enable machines to see, understand and assist people.

17-Nov-2017 – 5.63p – £83.7m – PER n/a

AGM Statement – I can’t work out if this is just waffle or there’s any actual value in it. My main take away was this “I strongly believe that our hard work and planning have put Seeing Machines into an enviable position”. Perhaps this is true.

This company burns money and is forecast to continue doing so. Too much jam tomorrow, even though it could be a lot of jam, I am awaiting to see that burn slow down (significantly). I also believe if they are truly in an “enviable position” they will not get a chance to become a 10/20 bagger, they’ll just get bought out instead – Just my thought.

12-Mar-2018 – 4.95p – £110.9m – PER n/a

Results For The 6 Months To End December 2017 – Record Revenue for the half-year ended December 2017 of A$14.6m. Lower down the update, what also looks like a record loss, A$16,683,056 compared with A$14,138,699 last time. The fact it’s a record loss is not mentioned. The Board is confident in the prospects for the second half and expects the results for the full year to June 2018 to be in line with expectations (a huge loss).

A loss maker but followed by many and with a little spare time, decided to have a look. I really like what this company does but it just continues to burn cash (and surely looks like it will need even more, Again! – Shares in issue has trebled in 5 years). I remember them stating that they were in an “enviable position” and commenting that if they are they will not get a chance to become a 10/20 bagger, they’ll just get bought out instead. Really like what they do, wish them well but I just can’t make an investment case.

3-Aug-2018 – 11.55p – £258.8m – PER n/a

Trading Update For The 12 Months To End June 2018 – Revenue up 127% to A$30.7m (in-line with guidance) with Gross Margin below management expectations.

This loss maker still seems to be burning through the cash and I still can’t justify an investment here. Could be the next big thing, but on the other hand, maybe not. I think best case, if the technology is so great, it gets taken out.

14-Nov-2018 – 5.84p – £133.5m – PER n/a

AGM Statement – Moving to pure OEM (and Tier 1 supplier (whatever that means)) – Looking “forward to addressing the considerable market opportunities in all our businesses in 2019 and will continue to invest in engineering and sales resources to support all these activities”.

Still no idea if this is the next big thing or not, still too much of a cash burning gamble for me – The statement highlighted above makes me wonder if they’ll be needing even more Cash! I remain Neutral.

16-Jan-2019 – 4.3p – £98m – PER n/a

Trading Update For The 6 Months To End December 2018 – FY 2019 Revenue to be in-line with 2018 – Remains unchanged.

Not much to change my mind here, I remain Neutral.

1-Aug-2019 – 4.5p – £150m – PER n/a

Trading Update For The 12 Months To End June 2019 – FY to be slightly ahead.

No sign of a Profit, no reason for me to invest. Latest Broker note this morning confirms no sign of a Profit in, at least, the next 2 years.

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