Our opinion on the current state of 4SIGHT(4SI)4Sight (4SI) is a Mauritian-based company that focuses on investing in technologies related to the "4th Industrial Revolution," which includes developments in cyber-physical systems such as cloud computing, the Internet of Things (IoT), and smart factories. The company operates in two main areas: mining and manufacturing, and software, cloud, and enterprise solutions. It employs around 400 people and serves 3,000 customers across 30 countries, with 42% of its income coming from outside South Africa.
Since listing in October 2017, 4Sight's share price fell sharply from 235c to around 13c by September 2019. However, the stock has rallied since then, reaching 31c. The company does not currently pay dividends, which is common for high-growth, tech-focused companies.
4Sight's business model, focused on the technologies driving the 4th Industrial Revolution, makes it a challenging company to evaluate without a deep understanding of these sectors. Therefore, a strict stop-loss strategy is recommended for investors. On 6th October 2020, 4Sight announced that it had bought back 30.6% of its issued ordinary shares and finalized the sale of Digitata for just over R90 million, strengthening its financial position.
In its results for the six months ending 31st August 2024, 4Sight reported a 20.1% increase in revenue and a 35.5% rise in headline earnings per share (HEPS). The company noted a significant rise in demand for its innovative AI solutions, reflecting a growing trend among its customers to prioritize AI integration and technological innovation in their business strategies.
The share was added to the Winning Shares List on 3rd August 2023 at 31c and has since risen as high as 110c on 14th March 2024. Technically, 4Sight is a penny stock, but it is showing potential for a new upward trend, and it trades around R126,000 per day on average, making it suitable for private investors. There is also evidence that the stock is beginning to attract the attention of institutional investors, which could further boost its prospects.
4SI trade ideas
Our opinion on the current state of 4SIGHT(4SI)4Sight (4SI) is a Mauritian company specializing in investing in "4th Industrial Revolution" companies and technologies. The first industrial revolution is seen as that which was involved in mechanization with water and steam power, the second came about when products were mass-produced, the third was the advent of computers and automation, and the fourth is what are called "cyber-physical systems." Cyber-physical systems involve cloud computing and the internet of things, evident in the development of so-called "smart factories."
The business is divided into two areas: mining & manufacturing, and software, cloud, and enterprise solutions. It has 400 employees and 3,000 customers in 30 countries. It claims to have 42% of its income coming from outside South Africa. Since listing in October 2017, the share price fell from 235c to levels around 13c in September 2019. Since then, it has rallied to 31c. The company does not yet pay dividends.
A company like this is extremely difficult to evaluate unless you have a deep understanding of the 4th industrial revolution. We would recommend a strict stop-loss strategy. On 6th October 2020, the company announced that it had bought back 30.6% of its issued ordinary shares and had finalized its sale of Digitata for just over R90m.
In its results for the 14 months to 29th February 2024, the company reported revenue up 57.7% from the year to 31st December 2022. Headline earnings per share (HEPS) were 153.8% higher. The company said, "Cash balance increased by 57.8% from R70.3 million to R110.8 million. Increase in net asset value per share by 29.6% to 57.8 cents per share. Revenue excluding consulting revenue increased by 54.5% from R479.0 million to R740.1 million, which contributed to the increase in the cost of sales by 53.1% from R361.4 million to R553.3 million." Note: The company has changed its financial year end to 29th February from 31st December.
We added this share to the Winning Shares List on 3rd August 2023 at 31c. Over the following six months, it moved up to 84c per share. Technically, the share is a penny stock that trades about R168,000 per day on average, which makes it practical for private investors.
Our opinion on the current state of 4SIGHT(4SI)4Sight is a Mauritian company that specializes in investing in technologies and companies associated with the "4th Industrial Revolution." This revolution is characterized by cyber-physical systems that integrate cloud computing and the internet of things, exemplified by the development of "smart factories." The company operates in two main areas: mining & manufacturing, and software, cloud, and enterprise solutions. It employs 400 people and serves 3000 customers across 30 countries, with 42% of its income derived from outside South Africa.
Since its listing in October 2017, 4Sight's share price has experienced significant volatility. Initially listed at 235c, the share price plummeted to around 13c by September 2019 but has since rallied to 31c. The company does not yet pay dividends, reflecting its growth-focused strategy. On 6th October 2020, the company announced a significant buyback of 30.6% of its issued ordinary shares and finalized the sale of Digitata for just over R90 million.
In its financial results for the year ending 31st December 2023, 4Sight reported a 34.9% increase in revenue and a 127.8% rise in headline earnings per share (HEPS). The company attributed the increase in other income mainly to forex currency gains of R2.9 million, compared to a loss of R1.2 million in the prior period. Total operating expenses for the period rose by 24.1% to R348.6 million from R280.8 million in the previous year.
For the 14 months ending 29th February 2024, 4Sight estimated that HEPS would range between 5.742c and 6.128c, compared with 2.379c per share for the period ended 31 December 2022. Notably, the company has changed its financial year-end to 29th February from 31st December. We added this share to the Winning Shares List on 3rd August 2023 at 31c, and it has since climbed to 79c.
Technically, the share qualifies as a penny stock, with an average daily trade value of about R158,000, making it accessible to private investors. It entered a strong uptrend following its latest results, although this uptrend may have temporarily plateaued. As such, 4Sight represents a challenging investment to evaluate without a deep understanding of the technologies driving the 4th industrial revolution, suggesting the use of a strict stop-loss strategy to manage investment risk.
Our opinion on the current state of 4SI4Sight Holdings, based in Mauritius, focuses on investments in companies and technologies pivotal to the Fourth Industrial Revolution, emphasizing cyber-physical systems such as cloud computing and the Internet of Things (IoT), evident in the rise of "smart factories." The company operates across two main segments: mining & manufacturing and software, cloud, and enterprise solutions. With a workforce of 400 and serving 3,000 customers across 30 countries, 4Sight has a significant portion of its income, 42%, originating from outside South Africa.
Since its initial public offering in October 2017, the company's share price has experienced volatility, dropping from 235c to around 13c by September 2019 before rallying to 31c. Despite not offering dividends, 4Sight has demonstrated substantial growth potential, particularly in a niche as complex and forward-looking as the Fourth Industrial Revolution. The company's strategy includes a rigorous stop-loss policy for investors, acknowledging the challenges in evaluating such a specialized entity without in-depth knowledge of its technological focus.
Significant developments include the repurchase of 30.6% of its issued ordinary shares and the sale of Digitata for just over R90 million on 6th October 2020. For the fiscal year ending on 31st December 2023, 4Sight reported a 34.9% increase in revenue and a 127.8% rise in headline earnings per share (HEPS), attributing the growth partly to foreign exchange gains and an increase in operating expenses.
The share was added to the Winning Shares List on 3rd August 2023 at 31c and has since appreciated to 96c, marking a 209% gain in six months. Despite being categorized as a penny stock with an average daily trading volume of about R230,000, making it accessible to private investors, 4Sight has demonstrated a robust uptrend following its latest financial results. However, this uptrend may be plateauing, suggesting a potential shift in its market trajectory.
4Sight: The Bigger PictureOne I labelled "The Poor Man's Gamble" not far back. This looks like it is attempting to break out of Stage 1 consolidation, the arc should guide price action at some point. The company wrote off about 30% of shares in issue so this will call for a revision of price upwards. Earlier the company hinted that the lockdown had had a positive effective on their business. If they are really putting effort in AI & Machine Learning innovation then this could a multi-bagger in the near future. Would be interesting to see what happens if the price action goes above R1.00. Maybe we should change it from "Poor Man's Gamble" to "Poor Man's Escape", but not just yet. This is one I am looking for stars to align elsewhere and add to my position.
4Sight Resumes Trading on JSEI have always looked at 4Sight as one of those companies that are really trying to innovate their way up. This is a distinguishing factor from the other more established tech companies who rely on selling services to established businesses. South Africa has not seen a lot of push for novel ideas mainly because big companies have vast market to tap for recurring income selling widely available products as partners or resellers. There is a huge gap for intellectual property creation which companies like 4Sight can move via AI & Machine Learning unlocking huge value.
So how would one work a strategy with 4Sight? I would say if you make some money elsewhere & wouldn't need for a while then buy small chucks of 4Sight shares e.g. R1,000 can buy about 4000 shares, doing it over 12 months can result in close to 50,000 shares. If the share attracts larger investors then you can be guaranteed a race to R2 in a short time. This is a share for those with little money to spend who have nothing to lose but see a large upside potential.
The recent fights at the management level did not augur well for those with an interest in the company, it seems the problems were resolved & we hope it's up from here on.
4Sight Jumps on Cautionary Announcement4Sight jumps 40% on a cautionary announcement. Those who caught it at R0.15 will be handsomely rewarded, previously I had hinted a buy level of R0.15-0.16 however the announcement changes everything. The share has lost close to 94% of price since October 2017 so there is more upside to be realised.
4Sight: Poor Man's Gamble4Sight ($JSE4SI) operates in the technology space and put themselves as those working out innovations of the future. Having listened to the CEO one picks up that they are setting up a niche in the technology sector, thus far South Africa is dominated by big tender contracts in the IT space. Though big players usually speak 4IR there's little to show that they are innovating besides custom-made technology for established business.
4Sight is a small cap so there's not much liquidity to support big spending. If you are starting out & looking at growing your little capital patiently this can be a boon. The range of trading is between R0.14 & R0.19, ideally you want to put an order to buy at R0.15 at market open, wait patiently for execution, can take a day or three to find a seller. Once you bought immediately sell targeting R0.18. This can mean a fulfilling growth for small capital not more than R20,000.00.
Conditions:
Entry Range R0.14 - R0.15
Exit level R0.18 - R0.19
Profit Target : 15-20%
Time in the Market : 2-5 days
Longterm Outlook: Use some of the profits to retain some shares. You might not be far from a good trading update, the last time saw the share testing the R0.50 level.