4Sight

29 January 2024 By PDSNET

The world has, in the last twenty years, entered what has been characterised as the 4th Industrial Revolution (4IR). It has been described as “... the biggest structural change of the past 250 years — a transformation of scale, scope and complexity unlike anything humankind has experienced before.” In simpler terms, 4IR refers to the digital convergence of artificial intelligence (AI), the Internet of things (IOT), robotics and cloud computing. 

The importance of 4IR was perhaps best illustrated by the announcement of Tesla’s Optimus Gen 2 humanoid robot in December 2023. This robot is specifically designed to operate in and learn from a world which is designed for people. It has the physical form and capabilities of a human being, but with greater strength and endurance.

Elon Musk suggests that within a relatively short time there will be millions of humanoid robots in the world performing thousands of boring, repetitive or dangerous tasks which are currently done by people. This development is at once both exciting and frightening since it will revolutionise almost every aspect of human behaviour. 4IR aims to increase productivity in all areas of human endeavour.

The only company listed on the Johannesburg Stock Exchange (JSE) which is specifically exploiting the shift to 4IR directly is 4Sight (4SI). 4SI listed on the JSE in October 2017, but only began to attract the attention of investors towards the end of last year. We added it to the Winning Shares List on 5th August 2023 at a price of 31c and it has since risen to 72c. Consider the chart:

4Sight (4SI): October 2022 - 26 January 2024. Chart by ShareFriend Pro.

 

The company operates through four “clusters”:

  1. Operational Technologies - 4IR technologies and services to help industrial customers with their full end-to-end digital transformation journey.
  2. Information Technologies - enabling the digital transformation of ERP, accounting, human resources, and payroll disciplines.
  3. Business Environment - partners with customers to drive value-creating digital transformation in specific areas of the business.
  4. Channel Partner - supporting and empowering an ever-expanding channel of value-added resellers across Africa, the Middle East, and Central Europe.

In its results for the six months to 30th June 2023, the company reported revenue up 37,1% and headline earnings per share (HEPS) up 197,2%.

The company’s balance sheet shows a healthy cash balance of R93m, up 33% on the previous comparable period.

In our view, this is a company growing rapidly on the back of the latest developments in computers and the internet. The only real problem with investing in a share like this is understanding exactly what it is that they do – but they are clearly very successful and expanding quickly.


DISCLAIMER

All information and data contained within the PDSnet Articles is for informational purposes only. PDSnet makes no representations as to the accuracy, completeness, suitability, or validity, of any information, and shall not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. Information in the PDSnet Articles are based on the author’s opinion and experience and should not be considered professional financial investment advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Thoughts and opinions will also change from time to time as more information is accumulated. PDSnet reserves the right to delete any comment or opinion for any reason.



Share this article:

PDSNET ARTICLES

The PEG Ratio

Since the government of national unity (GNU) came into power in June 2024, there has been a definite improvement in the South African economy. Perhaps the improvement is not as dramatic as some people were expecting, but the progress cannot be denied.

Possibly the best indicator of that is the 28% rise in the JSE Banking index which, before the GNU had

Rare Earth Elements

Investors worldwide had been of the opinion that Trump’s ability to impact markets was on the decline. His erratic, on-again, off again tariff policies had either disappeared or had been mostly discounted into share prices. His attack on the second largest economy in the world, China, seemed to have been largely resolved, and a meeting with

US Shutdown

There has been much in the media recently about the US government shutdown and the fear among investors that it might begin to affect the stock market, depending on how long it lasts.

A shutdown occurs when the US government reaches its budget limit and requires a bill to be passed through both Houses to extend the government’s spending limits.

New Listings

Two new companies, ASP Isotopes and Greencoat Renewables, have recently come to the JSE. Both are developing companies that have recently made losses and have been funding those losses by raising capital and selling assets. They both have substantial “blue sky” potential but also carry substantial investment risk. This is probably truer of ASP

Exponential Growth

The  S&P 500 index is important because all the stock markets around the world tend to follow it. If the S&P is in a bull trend then London, Tokyo and the JSE will also be in a bull trend – and vice versa.

The S&P500 index began 68 years ago on 4 th March 1957 with an initial value of 43,73. It took nearly

The US Jobs Market

International investors who trade on Wall Street are generally negative about any good news from the economy because it tends to make the monetary policy committee (MPC) more hawkish and less likely to reduce interest rates. The opposite is also true. But there comes a point where bad news is so bad that investors begin to fear that the US economy is heading

Jackson Hole

Once a year in late August central bankers and academics congregate in Jackson Hole to discuss the state of the economy and consider the way forward. Traditionally, the Chair of the Federal Reserve Bank (“the Fed”) addresses the meeting and gives direction to its thinking on monetary policy in the US. This year, the comments of Jerome Powell resulted in the

Choppies

Choppies is a supermarket chain which operates in Botswana, Namibia and Zambia. It is listed both on the Johannesburg Stock Exchange (JSE) and on the Botswana Stock Exchange (BSE). Notably, the company has resisted the temptation to re-enter the highly competitive and cut-throat retail market in South Africa, having exited that market in 2020 due to sustained losses. Despite

Gold Resistance

All investments throughout the world can be ranked on a scale from high risk to low risk. As a general rule, in the world of investment, risk and return rise together. In other words, as the risks in an investment increase, so does the return necessary to attract investors.

At the one end of the scale there are very low risk investments

Sibanye takes off

We have been writing about Neal Froneman and Sibanye for years now. Beginning in 2013, Froneman assembled the Sibanye group over a period of 7 years, buying up mining operations both in South Africa and America at bargain prices. Initially he bought precious metals producers, but more recently he has been diversifying into base metals like zinc and lithium which