Detect any object on any road, lighting and weather condition: that’s the promise offered by Foresight Autonomous’s (NASDAQ:FRSX) self-driving technology products. And, FRSX stock holders are counting on the company to live up to this ambitious promise.
Founded in 2015, Foresight Autonomous seeks to develop advanced systems for accident prevention through 3-D, multi-camera-based devices called Advanced Driver Assistance Systems (ADAS).
Besides the 3-D technology, ADAS leverage the power of advanced algorithms and artificial intelligence to enable accurate and reliable detection.
This is next-generation technology, and the investing community is taking notice. Reportedly, a major big-money Japanese company is getting involved, with potentially profound implications for FRSX stock holders.
A Closer Look at FRSX Stock
Pardon the bad pun, but FRSX stock mostly flew under the radar in early 2020. A year ago, you probably wouldn’t have seen much buzz surrounding this stock on financial message boards.
Not only that, but the bulls couldn’t seem to muster much enthusiasm as FRSX stock fell below $1 multiple times in 2020.
That could have been problematic as the Nasdaq Exchange has been known to sometimes de-list stocks that stay below $1 for an extended period of time.
However, the bulls started to show signs of life in December. In fact, the FRSX stock price quickly rocketed up to $5.75 on Dec. 23. Then, after a brief dip, FRSX shot up to $7.82 on Jan. 15.
That’s massively bullish price action, but I wanted to issue a couple of warnings about FRSX stock. First, the stock has a five-year monthly beta of 2.66. That means FRSX has been known to move more than twice as fast as the overall stock market.
Plus, FRSX stock has trailing 12-month earnings per share of -39 cents. The buyers will definitely want to see that number turn positive. But hey, at least for the time being, the bulls probably won’t have to worry about FRSX falling below $1.
A Mysterious Partnership
In a real game-changer for Foresight Autonomous, the company recently signed a deal to test the Eye-Net Protect accident prevention system in a pilot program.
Here’s where the details get somewhat mysterious. According to Foresight Autonomous’s press release, the deal is with “a multi-billion-dollar global Japanese vehicle manufacturer.”
Some investors like mysteries, while others don’t. Judging by the price action of FRSX stock, the court of public opinion seems to weigh in favor of the deal, even if the other party to the deal remains unknown.
Known Knowns, and Known Unknowns
I have to admit, I like the mysterious aspect of the deal. My only concern would be that an old saying might apply when the identity of the “multi-billion-dollar global Japanese vehicle manufacturer” is revealed.
That old saying is: “Buy the rumor, sell the news.” Foresight Autonomous will have to let the cat out of the bag sooner or later.
Until that time, speculation and anticipation will build, and that could push the FRSX stock price higher. But instead of focusing on what we don’t know, let’s focus on what we do know.
And, what we know is that Eye-Net Mobile will have a value-added partner in penetrating a burgeoning Asian market. As COO and Deputy CEO Dror Elbaz explains:
“This first pilot with a top global vehicle manufacturer opens a new market for Eye-Net Mobile and demonstrates a need in the automotive industry for a readily-available software-based solution that provides real-time pre-collision alerts and enhances the safety of drivers and other vulnerable road users.”
The Bottom Line
Innovative technology and a high-profile partnership could help Foresight Automotive reduce road accidents. At the same time, these factors can help the company achieve early-mover status in the international sensor-system market.
So, if you don’t mind a bit of mystery in your investing strategy, feel free to take a reasonably-sized position in FRSX stock.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.