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.