Neonode Inc., (NEON), the optical touch technology company, announced today that it has signed a high volume multi-year license agreement with BYD, which is one of the world’s largest product manufacturers of consumer electronics, automotive solutions and green technologies. The BYD device, that is to incorporate Neonode’s MultiSensing™ touch solution, is expected to go into mass production in the first quarter 2013
Danny, I for one am very confident in Neon....just bought another 10k shares today. Think about it. Neon has no cost of goods. Once they meet the cost of running their business, everything is profit. In the last 4 quarters, they spent ~$18 Mil.. They can add a dozen engineers and the total yearly expenses will only be about $20 mil.. They are getting an average of $1 per unit and up to $10 for automotive applications. When it comes to handsets, 10 million units is a drop in the bucket as this less than 1% of feature phone market and 0.5% of whole market.
I cannot emphasize enough the beauty of this business model. I predict that the SP will rocket once they surpass break even. Let's consider predictions of yearly revenues of $40 mil.. This would be $20 Mil in profit or over 50 cents per share. The market will then recognize the efficiency of their business model and give them a lofty PE....I'm guessing 80-100, but let's use 50. 50 times 20 mil profit equals market cap of $1 Billion or SP of 25-30 (fully diluted). This is my 2014 SP prediction, and I believe that I am being conservative.
I was in a plane recently where they had capacitance touch screens on the headrests of each seat . A child behind me was playing games for the whole trip. I felt like I was being attacked by a woodpecker as he kept banging on my headrest. IR touch is better suited for this application and I am sure that I am not the first to see (and feel) this problem. I wish his mother had noticed though. So when they speak of airline applications, they may not mean just 1 unit per plane for gps or whatever. Most jets have 130 or more seats, each with a headrest tv.
Shorts look at technicals and usually know little about company fundamentals. Funds need to get rid of losers at year end and have games of their own to play, so I don't see them as strong indicators in January....just my opinion and we shall see.
whats amazin is the word is still not out in the market ,neonode is going to blow away with their finacials relatively soon they have very little cost , n their licensing aggreements are becoming more lucrative.
This is why the stock does not move..yet
Picture yourself answering questions on why you own Neonode..
1) So joe what kind of business is Neon in?..the touch screen market..
really?..what is their technology?...Infra-red. The guy then looks at you like
you just stepped out of a Gremlin wearing bell bottoms.
2) Well who are their current customers and what markets is their strongest..you tell him
E- Readers and They used to have Amazon as a customer. The guy then looks at you like
you like yer one of those guys who yells BOO-YAH and calls Kramer.
3) the guy is smurking while you say..but but they have 80 design wins. He says ..good luck
with that pal.
Neonode will not go anywhere until they show a quarter with great earnings and guidance. I
think this is coming. Not in the cell phone market but in the automotive and office space.
BYD makes products for the automotive and other industries in China. Although we don't see any Chinese cars in the US, China produced 24% of the cars in the world in 2011 at ~15.5 million vehicles. I wonder if this is one of the planned applications?...$10 per velicle...hmmm.
BYD is the world's 2nd largest supplier of cell phone shells as per company profile on their website. Isn't Neonode's solution for cell phones incorporated into the cell phone housing (shell)? Neonode has stated that they can lower the cost of goods for feature phones containing buttons because the cost of Neon's solution is cheaper than the cost of the buttons. Perhaps this is the "high volume" product that they are referring to. It would also explain how it would be used as soon as q1, 2013 as it would not take long to incorporate it into the cell phone shells....just a guess, but perhaps we will hear more in the cc. Anyone know when the cc will be?