The Little Engine that Could--$RVSN Steadily Tracks Upwards
Railvision (NASDAQ: RVSN) is a machine vision company developing sensor and camera technology for use on trains and railway infrastructure. Like Mobileye (MBLY), RVSN was established in Israel, which is recognized as a global hub for autonomous vehicle and computer vision R&D. I added this ticker to my watchlist after seeing a November PR about a board change, and realized that KBX, a German-based railway manufacturing giant, is a strategic investor with ~35% stake in RVSN and significant sway on the board. So I took a closer look under the hood and am intrigued.
First a bit about RVSN; the company went public in March '22 and witnessed a steady slide in share price through October/November, where it bottomed out around $0.45. However since November 16th, price action has been consistently tracking an ascending support and has already bounced off numerous times, as the chart depicts. Since its November low, RVSN is up >100% albeit on low volume, suggesting a quiet accumulation of shares somewhere. Notwithstanding a dip over the past few days, RVSN is trading above said support, above its 20/50/100 SMAs, and MACD remains in the green.
The only two catalysts I was able to identify as potentially playing a role in this lowkey +100% run was a board swap-out on November 26th and Q3 financials released on December 6th. Neither intraday trading nor an uptick in volume really indicate that these NRs directly caused the recent gains.
So what's behind the triple-digit monthly percentage gains? Well, they finished a first POC of their autonomous rail tech in Australia with Rio Tinto (RIO), a global mining giant, that may be contributing to an uptick in demand. Things look quiet on the retail side, and institutional involvement seems pretty minimal at this stage. RVSN is still largely pre-revenue, so the promise of dividends or earnings aren't really in play either.
Regardless the source, RVSN has seen an impressive bounce back over the past month as NASDAQ and other equity markets continue to bleed. Judging by the MBLY IPO, there's robust demand behind machine vision tech and applications, not to mention the mega-potential for redevelopment of crumbling global railroad infrastructure. We're unlikely to see any big moves before the New Year so for now I'll be waiting and watching to see if RVSN continues this climb, and into 2023 will really start considering establishing at least a starter position.
First a bit about RVSN; the company went public in March '22 and witnessed a steady slide in share price through October/November, where it bottomed out around $0.45. However since November 16th, price action has been consistently tracking an ascending support and has already bounced off numerous times, as the chart depicts. Since its November low, RVSN is up >100% albeit on low volume, suggesting a quiet accumulation of shares somewhere. Notwithstanding a dip over the past few days, RVSN is trading above said support, above its 20/50/100 SMAs, and MACD remains in the green.
The only two catalysts I was able to identify as potentially playing a role in this lowkey +100% run was a board swap-out on November 26th and Q3 financials released on December 6th. Neither intraday trading nor an uptick in volume really indicate that these NRs directly caused the recent gains.
So what's behind the triple-digit monthly percentage gains? Well, they finished a first POC of their autonomous rail tech in Australia with Rio Tinto (RIO), a global mining giant, that may be contributing to an uptick in demand. Things look quiet on the retail side, and institutional involvement seems pretty minimal at this stage. RVSN is still largely pre-revenue, so the promise of dividends or earnings aren't really in play either.
Regardless the source, RVSN has seen an impressive bounce back over the past month as NASDAQ and other equity markets continue to bleed. Judging by the MBLY IPO, there's robust demand behind machine vision tech and applications, not to mention the mega-potential for redevelopment of crumbling global railroad infrastructure. We're unlikely to see any big moves before the New Year so for now I'll be waiting and watching to see if RVSN continues this climb, and into 2023 will really start considering establishing at least a starter position.
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