Our opinion on the current state of 4SI

4Sight Holdings, based in Mauritius, focuses on investments in companies and technologies pivotal to the Fourth Industrial Revolution, emphasizing cyber-physical systems such as cloud computing and the Internet of Things (IoT), evident in the rise of "smart factories." The company operates across two main segments: mining & manufacturing and software, cloud, and enterprise solutions. With a workforce of 400 and serving 3,000 customers across 30 countries, 4Sight has a significant portion of its income, 42%, originating from outside South Africa.

Since its initial public offering in October 2017, the company's share price has experienced volatility, dropping from 235c to around 13c by September 2019 before rallying to 31c. Despite not offering dividends, 4Sight has demonstrated substantial growth potential, particularly in a niche as complex and forward-looking as the Fourth Industrial Revolution. The company's strategy includes a rigorous stop-loss policy for investors, acknowledging the challenges in evaluating such a specialized entity without in-depth knowledge of its technological focus.

Significant developments include the repurchase of 30.6% of its issued ordinary shares and the sale of Digitata for just over R90 million on 6th October 2020. For the fiscal year ending on 31st December 2023, 4Sight reported a 34.9% increase in revenue and a 127.8% rise in headline earnings per share (HEPS), attributing the growth partly to foreign exchange gains and an increase in operating expenses.

The share was added to the Winning Shares List on 3rd August 2023 at 31c and has since appreciated to 96c, marking a 209% gain in six months. Despite being categorized as a penny stock with an average daily trading volume of about R230,000, making it accessible to private investors, 4Sight has demonstrated a robust uptrend following its latest financial results. However, this uptrend may be plateauing, suggesting a potential shift in its market trajectory.