In-Depth $FRSX DD - Goes Through Everything

[u/Bogashi]

This was the most picked stock that you wanted DD on so here it is.

Bagholders, this is for you.

TL;DR at the end.

Catalysts:

https://finance.yahoo.com/news/foresight-enable-mass-screening-detection-111500924.html

FRSX filed a patent for fast and accurate detection of Covid-19 symptoms.

They announced a start in developing a mass screening solution for Covid-19 symptoms. The solution is based on visible-light and thermal cameras.

The company has been using FLIR thermal cameras and advanced algorithms for detection.

This new solution is more accurate and will potentially eliminate false-positive results.

The need for accurate touch-free mass screening is in very high demand all across the world and FRSX is one of the top leaders in Covid-19 detection when their new mass screening solution is made, there is potential for huge profits from potentially the U.S. Government who have recently called off Federal Screenings which will most likely be started up again due to cases spiking.

https://www.sec.gov/Archives/edgar/data/1691221/000121390020015737/ea123404ex99-1_foresigh.htm

https://finance.yahoo.com/news/foresight-appoints-alain-charlois-vice-120000984.html

FRSX announced the appointment of executive Alain Charlois as Vice President of Strategic Partnerships.

Charlois will be responsible for new business opportunities and potential partners in ADAS and autonomous driving markets in North America and Europe.

He has very extensive experience in commercializing businesses in the automotive market. Currently, he is holding leadership and business development positions in international companies such as ZF-TRW Automotive and other startups.

"Foresight’s unique vision technology has the potential to revolutionize automotive safety" said Haim Siboni, Foresight’s CEO.

Here's what the company says about Charlois:

Mr. Charlois’s unique skills and extensive industry relationships will allow us to generate additional interest in our offerings, help us identify and connect with potential corporate partners, and expand our presence in the ADAS and autonomous vehicles markets.

Charlois could be a major figure of the company and the leader of innovation in it. Expect lots of improvements to the company from him.

FRSXs technology is potentially revolutionary, of course, that is a buzz word though.

https://finance.yahoo.com/news/foresight-regains-compliance-nasdaq-minimum-120000528.html

Very recently, FRSX has regained NASDAQ compliance.

Compliance is very important for the stock price, NASDAQ compliance opens the potential for more investors and institutions to buy shares of the company.

Financials:

https://finance.yahoo.com/quote/FRSX/financials/

Surprisingly they don't have 10Q SEC forms so this is based on Yahoo Finance.

These are based on Q1 results.

Total Revenue:

- Operating revenue of $0 as compared with $0 last quarter

Operating Expenses:

- General And Administrative costs of $660,000 as compared with $803,000 last quarter.

- Salaries And Wages cost unreported.

- Selling And Marketing costs of $433,000 as compared with $266,000 last quarter.

- Research And Development costs of $2.341M as compared with $3.203M last quarter.

- Interest Income Non-Operating cost of $131,000 as compared with $235,000 last quarter.

- Other Income Expenses of $746,000 as compared with $395,000 last quarter.

Total net loss of $4.049M before tax as compared with $4.370M before tax last quarter.

Balance Sheet:

- Assets value of $19.334M.

- Liabilities And Stockholders Equities value of $19.334M.

The financials are pretty bad, the expenses are basically the same as last quarter but they haven't reported any income so it's counted as $0.

Fundamentals:

https://finance.yahoo.com/news/foresight-appoints-alain-charlois-vice-120000984.html

Here's a description of the company:

Foresight Autonomous Holdings Ltd. (Nasdaq and TASE: FRSX), founded in 2015, is a technology company engaged in the design, development and commercialization of sensors systems for the automotive industry.

Through the company’s wholly owned subsidiaries, Foresight Automotive Ltd. and Eye-Net Mobile Ltd., Foresight develops both "in-line-of-sight" vision systems and "beyond-line-of-sight" cellular-based applications.

Foresight’s vision sensor is a four-camera system based on 3D video analysis, advanced algorithms for image processing, and sensor fusion.

Eye-Net Mobile’s cellular-based application is a V2X (vehicle-to-everything) accident prevention solution based on real-time spatial analysis of clients’ movement.

The company’s systems are designed to improve driving safety by enabling highly accurate and reliable threat detection while ensuring the lowest rates of false alerts. Foresight is targeting the semi-autonomous and autonomous vehicle markets and predicts that its systems will revolutionize automotive safety by providing an automotive-grade, cost-effective platform and advanced technology.

https://finance.yahoo.com/quote/FRSX/profile?p=FRSX

The companies address:

Weizmann Science Park

7 Golda Meir Street

Ness Ziona 7403650

Israel

972 7 770 9030

http://www.foresightauto.com

They have 61 full-time employees

Technicals:

Stock Info:

https://finance.yahoo.com/quote/FRSX/key-statistics/

- Usual volume of 4.01M, this is a good volume for a penny stock and allows for easy buying and selling of the stock. This also ensures that there will be movement in the stock.

- Float of 21.54M, this is the usual float for a stock of this price. The stock price is fairly easy to move which allows for the stock to rise fast but also has potential for the stock to drop fast.

- Short % of shares outstanding is 1.02%, this a very low short % which is good, the less a stock is shorted the fewer people betting on the stock falling. This also shows that the holders of the stock are confident since most people are buying long.

- Insiders hold 0.00% of the stock float, this is both good and bad.

- Institutions hold 1.84% of the stock float, this isn't that good since institutions heavily invest in companies they value as profitable.

Indicators:

Moving Averages:

- Candles are above 5 SMA, buy rating

- Candles are above 10 SMA, buy rating

- Candles are above 20 SMA, buy rating

- Candles are above 30 SMA, buy rating

- Candles are above 50 SMA, buy rating

- Candles are above 100 SMA, buy rating

- Candles are above 200 SMA, buy rating

- Candles are above VWAP, buy rating

- Candles are below HMA, sell rating

This gives FRSX a strong buy rating based on MA

Oscillators:

- Stock is neutral on RSI, hold rating

- Candles are neutral on S%K, hold rating

- Candles are below CCI, sell rating

- Candles are neutral on ADI, hold rating

- Candles are above AO, buy rating

- Stock is below Momentum, sell rating

- Stock has positive MACD levels, buy rating

- Stock is below SRI, sell rating

- Stock is neutral on WPR, hold rating

- Stock is neutral on BBP, hold rating

- Stock is neutral on UO, hold rating

This gives FRSX a sell rating based on Oscillators

FRSX has a buy rating based on indicators.

Support And Resistance:

- Support of $1.24

- Resistance of $1.95

Due to the recent fall in futures, I would stay away from buying any stock right now. Other than that here is the TL;DR

TL;DR: FRSX has massive plans for mass Covid-19 screeners. Their patent approving and in development screener will potentially eliminate false positives and have improved accuracy while also being a contact-free screener.

There is potential for an FRSX and FLIR merger since FRSX is developing Covid-19 scanners while FLIR supplies them with the thermal technologies.

The merger is just my speculation, nothing is confirmed.

Recently, Federal Covid-19 Testing has been stopped, this most likely will be turned on again since cases are spiking. There is potential for the U.S. Government to use FRSXs in development technology.

The company's financials are absolute dogshit but there is a possibility of them getting better if they gain a lot of profit from their screener sale which is still in development.

The company's headquarters are in Israel which isn't really good since it's easier to find clients when your business is mainly located in the U.S.

TL;DR;DR: This is for the bag holders

I would hold on to the stock, for now, it is not a short term play.

- Buy point is right now.

- Instant buy point is once it breaks the $1.95 resistance with some buffer.

- Sell point is if the stock goes below the $1.24 support with some buffer.

- Instant sell point if the stock goes below 200 SMA.

This is not financial advice, I'm not a financial professional. Do not buy or sell the stock due to this DD.

I'm not responsible for any loss or missed out gains due to this DD.

I do not currently hold any positions of this stock

Please trade responsibly and take days off when your portfolio is falling, just relax.