nvhltd may I recommend you sell up and get out of SEE shares if you really are that unhappy, you are just wasting your time here getting it all mixed up and frustrating yourself badly. |
I also never said Magna can demand their money back, but at or by the deadline SEE either pay them back or we dilute at 11p. That might seem great considering where the share price sits currently, but it's nothing to be happy about.
The market and the share price tells us all we need to know about progress. |
I know perfectly well that camera-based DMS isn't a requirement for the coming GSR. That's precisely the problem. A camera-based DMS isn't required until 2026 unless it's for a new vehicle type, but it doesn't stop Paul banging on about it and raising expectations that we will benefit greatly. 330,000 commercial vehicles are registered in Europe every year and a beneficial driver is landing in 2 weeks time. We were also told 20 months ago that we have PO'S for hundreds of thousands of units, but still no confirmed sales to speak of.
Tell me where I am wrong with what we've been told to expect? |
Blimey nvhitd talk about glass half empty, please get the facts correct. Magna are committed and the conversion rate gives only a small dilution.
The share price is poor but so is the AIM market in general.
Not great that they have missed Ebitda target but that sounds like a small timing difference. |
 nvhitd - you really need to research SEE better. Magna cannot demand repayment of the loan nor the interest on the loan come Oct 2026. Read the terms of the agreement. It has a conversion price of 11p. Look at it as a deferred fund raise at 11p. For this Magna will end up with about 9.9% of SEE. Debt comes off the balance sheet and shares are issued and at 11p hardly dilutive. As I see it this loan was to help develop the software to work with the rear view mirror and future generation of it. It would be total nonsense for Magna to start all over again with Smart eye etc. Secondly, I don't think you really understand what July GSR deadline means for after market. It doesn't mean they have to fit a camera based system (direct) that comes in 2026. An indirect system, like a vibrating seat and audible sound may do if the diver takes their hands off the steering wheel. As we approach 2026, expect a rapid acceleration of camera based systems, as vans, buses lorries are mandated to provide direct camera systems. |
Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) had a 'buy' rating from Stifel reiterated after the company secured a $16.5 million upfront payment from global mining equipment giant Caterpillar for its Guardian driver monitoring product.
Alongside the contract, the AIM- and OTC-listed company also provided a trading update as the end of its current financial year approaches, where it said revenue and cash are set to finish "at or ahead of market expectations".
Although the final revenue recognition of the Caterpillar deal and the final outcome on automotive royalties it not yet complete, it is expected that cash EBITDA will be lower than market expectations, driven by a slower-than-expected transition from Guardian Generation 2 to Generation 3 aftermarket products.
Despite this, the board said the business has funding to deliver its business plan, with a cash flow break-even run rate still expected in the new 2025 financial year.
Stifel said the transition to the next generation of aftermarket products will have an effect on its forward estimates, which resulted in it trimming its share price target to 13p from 15p, though this noted "still has plenty of upside" above the last 4.7p closing price.
"As the company gets closer to cash flow breakeven, we think the shares will appeal to a much broader group of investors, which should have a beneficial effect on the share price," the Stifel analysts said.
"Seeing Machines remains one of our top picks within the sector," they added, noting that the shares trade at 4.1 times forecast sales for the current year, falling to 3.4 times for next year.
Sourced from ProactiveInvestors 26.06.24 |
Magna are unlikely to build a product heavily geared to joint IP, show it off tonthe world with See logos in it and then swap to cipia or smarteye. They are already huilding the next gen with alcohol.interlock qualified by see tech. You are just spreading FUD and embarrassing yourself just like you do when you post chippy comments on Linkedin and Twitter on See posts. How do you gain by doing that IF you hold see shares. Which i doubt or you are massivley over exposed for which you have yourself to blame. Rainbow chasing and illinformed |
Magna? You do realise we owe Magna $47 million in either cash or shares in October 2026? That'll fly by so we need to be making significant cash to pay them back or be diluted. If they choose to continue with SEE they will hold all the aces. We need them more than they need us. As pointed out we have 12 months left with Magna. There's no certainty they will continue with SEE. They could well be talking to Smarteye or Cipia. So they could easily flip to Smarteye next year and demand most of their money in 2026. Please don't tell me that's not a possibility. We only have to look at BMW to know that nothing lasts forever.
SEE just can't get anything right. As usual a positive piece of news is overshadowed by yet more bad news.
It's also plainly obvious by the lack of Gen 3 contracts that vehicle manufacturers don't want or need the system until they have to. No one can tell me that with 2 weeks to the GSR deadline that if it was being installed we would know about it. |
Pretty sour news about the EBITA, however most likely restructuring costs in releasing staff after the move. Clumsily dealt with by PMG as the reduction deserves explanation. The market obviously does not like this.
CAT deal is great.
Next up is Magna as that is due to expire in June 2025 so possibly another cash bump up before then as this was a bigger deal before. |
Well, currently there’s 1m, 750k, 250k, 150k all offered inside the price. Bid at 4.58 works in 25k and there is nothing at all below that.
So, I’m not sure the market agrees…! But let’s see. |
I get that ..... but Caterpillar wouldn't be paying $16.5m unless they needed this technology ..... also ..... cash and revenue to meet or exceed expectations .... so I don't see any risk of business failure.
Remember ... Magna is heavily invested here.
I honestly think that getting in here and tucking these away,
could be a real winner. |
heavily offered 750k in one place and more, one mm trying to prop up the book but no size on the bid at all and a profit warning hidden in the detail. What’s not to like? |
Just added at 4.6p :-) |
I was just about to post something similar smithless, though agree it's been a long haul.
Sometimes I think the large companies take advantage of these innovative smaller firms, with not as much clout.
However....cash in hand and much better than coming to investors and asking for more money.
imo |
My biggest immediate concern was cash and I don' think I was alone. The US16.5m from Caterpillar removes this. How much will Magna have to pay? As for Gen 3 and GSR, remember DMS is only a mandatory requirement from June 2026, until then a vibrating steering wheel and dash warning will do. As we get nearer June 2026 expect demand to accelerate. At the moment cash is king and SEE has ticked a big box for me. |
I think we have a shrewd idea...... |
Let's see how the market reacts |
Despite Cash EBITDA being lower in FY2024, the Board confirms that the business is funded to deliver on the Seeing Machines business plan and reiterates its expectation to achieve a cash flow break-even run rate in FY2025. |
Paul McGlone, CEO at Seeing Machines, commented: "When we signed our initial strategic agreement with Caterpillar in 2015 to work exclusively to deliver our package of monitoring technology to their customers in certain core industry sectors related to mining, it was a transformational agreement for the industry. As we enter this next phase of our strategic collaboration with Caterpillar, we are delighted to be signing this revised agreement, setting the agenda for the next 5 years. The US$16.5 million payment will bolster our cash reserves and help deliver on our business plan as we move closer to achieving a cash flow break-even run rate in FY2025.
"Our incredible team continues to work tirelessly to ensure that Seeing Machines remains at the cutting edge of aftermarket Driver Monitoring System (DMS) solutions with our Guardian technology. Following the launch of the Guardian Generation 3 product earlier this year, and the renewal and expansion of our exclusive arrangement with Caterpillar, I believe we are well placed to take advantage of the regulation driven demand for our technology across customers in these vertical industries." |
Nvhltd,
It does look like they were trying to bury that |
Wow ..... I wasn't aware of the Caterpillar deal ...... $16.5 million up front payment !
I am beginning to see the tremendous potential here ... one to buy and tuck away .... could produce great gains ! |
Oh dear, oh dear. Nothing new, but an extension and buried in the positive spin is the real news that revenues are below target. This is with 2 weeks to go before the first GSR deadline.
It's plainly obvious that things are not going to plan. Virtually no new OEM contracts despite the hype and no news worthy RNS around Gen3 contracts. Obviously no truck makers are installing Gen3 at the manufacturing stage at the moment because they'd be rolling off the production line now ready for July 7th deadline. |
amt
Yes, just seen that. A bit of a bummer, great news at the beginning but a squeeze of the nuts at the end.....Why aren't things never smooth? |
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