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Seeing Machines (LSE:SEE) made a mark today with a 16.7% increase in its share price. Every so often we need to take time to look at some of the smaller companies on the London exchange like Seeing Machines. Afterall, these are the ones where a lot of money can be made once the company reaches a tipping point where the demand for it services shifts into high gear.
Seeing Machines is a technology company headquartered in Canberra, Australia, traded on the AIM. Although the company produces and distributes several innovative products, the one that is at center stage today, and likely for some time to come, is its DSS-IVS (Driver Safety System/In Vehicle System) facial and eye-tracking, image-processing system for use as a safety device in vehicular applications, particularly for heavy duty mining and excavation. The company began as a spinout from Australian National University in 2000. In 2008 the company received an award from Caterpillar (NYSE:CAT) that recognized SEE’s technology as “the number one camera-based solution” for detecting and combating driver fatigue.
The DSS system utilizes an on-board camera and computerized system that monitors the driver’s face and instantly recognizes a range of issues from driver distraction to micro-sleep to help prevent accidents, injuries and fatalities. The company envisions an eventual partnering with CAT for inclusion of the DSS system as an integrated part of CAT OE production. In the meantime, the company announced this morning that the first CAT distributor has signed on as a a distributor for the system as an add-on for existing vehicles. Caterpillar dealers will be the exclusive distributors of the SEE Driver Safety System worldwide. Another 20 dealers are already in the process of becoming SEE distributors. SEE CEO, Ken Kroeger said that “The alliance with Caterpillar continues to be our business model for sector engagement and we expect to continue to establish similar exclusive relationships in each of the key industry sectors where our head, face and eye tracking technology have application.”
As with most companies with developing product, SEE has operated heretofore on potential. Or, as Bobby Cox, former manager of the World Series champion Atlanta Braves once said, “Potential means ‘not worth anything yet.'” Investors may want to keep their eyes on SEE, because potential appears to be turning into reality that is going to be worth a lot in both the near and distant future. SEE’s share price has been representative of “potential” since its admission to the AIM on 01 December 2005, hovering between 1.0 to 3.5 pence for most of the duration, reaching and remaining at a virtual plateau of 7.5 since mid November. SEE shares jumped over 16% this morning to 9.75 before settling back to 9.63, still an increase of over 16%. A look at the company’s one-year chart shows the share price clearly now at a point 450% higher than the 2.00 that it was on 18 December 2012.
I know one thing for sure. I will be keeping my eyes on SEE while it keeps its eyes on drivers to ensure that they are keeping their eyes on the road. I see SEE it as something worth looking into.
