FRSX Stock: Foresight Autonomous Rockets On Market Entrance

Foresight Autonomous Holdings ADR (NASDAQ: FRSX) is screaming for the top in the market this morning after the company announced that it received an order that marks its entrance into a multi-billion dollar industry. 

Here’s what’s going on:

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FRSX Stock Pops on New Order

As mentioned above, Foresight Autonomous Holdings is having a great day today after announcing that it has received a major order. 

The order came from Knorr-Bremse Systeme für Schienenfahrzeuge GmbH, an affiliate of Knorr-Bremse AG (Frankfurt: KBX) and surrounds two samples of the company’s light rail vehicle (LRV) system. 

Moreover, FRSX said that the customer has also ordered customization of Rail Vision’s LRV system features according to its requirement. As a result of the order, the company is expected to generate EUR400,000. 

Management Commentary

In a statement, Haim Siboni, CEO at FRSX, had the following to offer:

Knorr-Bremse continues to show its vote of confidence in Rail Vision’s unique technology, as this project follows Knorr-Bremse’s previous investments in the Company. Rail Vision has developed a solution to address the challenges of the growing LRV market, and we believe that this commercial cooperation suggests that there may be potential for long-term growth for Rail Vision’s business.

Why the Order Is So Exciting

The news released by Foresight Autonomous Holdings this morning is overwhelmingly positive. First and foremost, EUR400,000 is a whole lot of money, which will improve the company’s balance sheet and serves to validate the company’s work. 

Beyond that Knorr-Bremse is a great partner to have. In fact, the company recently invested $10 million in Rail Vision, a company that FRSX owns more than 19% of and is worth $17 billion. Considering these facts, if all goes well, there are likely plenty more, higher value, orders coming down the line. 

There’s more. 

The order represents the company’s entrance into the light rail market. In 2020, it is expected that this market will generate $8.6 billion in revenue, with the market growing to be worth more than $10 billion by 2027. That’s a massive opportunity!

This excitement was the first tick upward for FRSX stock. Then, the tiny float stock with relatively high short interest went into a short squeeze, leading to the dramatic gains we’re seeing from the stock today. 

What Is Foresight Autonomous?

Foresight Autonomous Holdings is a tech play building innovative autonomous technologies. 

The company’s claim to fame is its QuadSight mutli-spectral vision solution, which represents a paradigm shift for autonomous vehicles. The system is incredibly accurate in terms of obstacle detection, even in harsh lighting and weather conditions. 

The QuadSight system is designed for integration in semi-autonomous and fully autonomous vehicle applications. 

Analyst Opinions of FRSX Stock

According to TipRanks, there is only one analyst covering FRSX. However, that analyst has an overwhelmingly positive opinion. 

In fact, the stock is rated a buy with a $2.50 price target. 

While it’s never a good idea to blindly follow the opinions of analysts, it’s a good sign when analyst coverage is as positive as it is on FRSX stock. 

Risks to consider before buying FRSX Stock

Any investment you make is going to come with risks. An investment in FRSX stock is no different. Some of the most significant risks to consider include:

  • Small Fish Syndrome. Foresight Autonomous Holdings is a very small fish in a very big pond. Some of the world’s largest companies are working to develop autonomous vehicle technologies, which could be a good and bad thing. Should the company’s technologies outperform the big dogs, it will become a great acquisition target. On the other hand, if that’s not the case, the company may be doomed to eat the crumbs left behind by the giants. 
  • Far From Profitability. Like many in penny stock territory, Foresight Autonomous is far from profitability. That means that until it achieves profitability, it will need to survive on what it has in the bank. If that can’t be achieved, a dilutive offering may be on the horizon. 
  • Volatility Risk. FRSX is a penny stock, and as a penny stock, it experiences high levels of volatility. When there’s high levels of volatility, price movements become more difficult to predict. 

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Final Thoughts

All in all, FRSX stock is a risky investment opportunity, but every investment comes with risk. Nonetheless, if all continues to go well for the company, it may become a cornerstone in the autonomous vehicle industry. 

The company’s technologies make it possible for autonomous vehicles to reliably avoid obstructions along the way, even in harsh weather conditions. Think about the implications. Even human beings have a hard time seeing obstacles while driving in thunderstorms, heavy fog, or other intense weather conditions. The technology developed by Foresight Autonomous Holdings doesn’t have that problem. 

While the risks are there, so is the potential for tremendous reward. As such, FRSX stock is one to watch closely.