Seeing Machines worth a look after Samsung deal

A week ago, Seeing Machines confirmed a hugely significant deal in Japan and the future looked promising. We asked if shares in the AIM-listed technology firm could really double. Well, a new alliance with Samsung seriously increases the chances.

The share price is already up to 7.5p from 6p last week. Broker finnCap reckoned the shares could be worth 12p. It still does.

Certainly that bullish forecast looks more realistic with every deal of this kind. SEE and Samsung Electro-Mechanics Corporation (SEMCo) have agreed to work together on face and eye-tracking technology for the consumer electronics industry, most likely in mobile devices first.

The pair have been working together for a couple of years, but the memorandum of understanding formalises the collaboration which will now accelerate development of the technology and its applications.

"I can't think of a better strategic partner for the consumer electronics industry and feel strongly that working with our friends at SEMCo will help us to drive mass-market adoption of face and eye-tracking technology," said SEE boss Ken Kroeger.

And Samsung vice president of product planning Sunkyu Lee calls SEE's eye tracking algorithms "industry best".

According to finnCap, SEE believed the consumer electronics market - estimated at $1.2 trillion (£744.5 billion) in 2017 and growing fast - was "too large, complex and competitive for immediate commercialisation", but huge interest from its suppliers "made it impossible to ignore".

The tie-up does not bring any immediate revenue, so forecasts remain unchanged - finnCap expects adjusted pre-tax profit of A$600,000 (£347,878) and adjusted earnings per share of 0.1 Aussie cents in 2017. But this is early-stage stuff with massive potential, and the broker's target price looks achievable.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.