SOBRsafe, Inc. (NASDAQ: SOBR) is a stock to watch. In fact, you may have no choice; the SOBRcheck alcohol-detection technology is on a pathway toward mainstream adoption. And that’s excellent news for the company, drivers, employers, insurance companies, and, of course, investors timely in taking advantage of an apparent and wide asset to share price disconnect. Many of the latter already have. Since 2023, SOBR shares are higher by over 120%, scoring an intraday high of $2.10 on Tuesday. Ironically, that’s well off its 52-week high mark of $9.91 despite SOBR being better positioned today than ever to penetrate markets and ignite new revenue growth.
But better than ideally positioned, and in addition to deals signed with major industry clients to accelerate SOBRcheck’s market penetration, SOBR could get a significant boost of interest from an NTSB offensive wanting to help craft legislation making alcohol detection more commonplace than ever. In short, those connecting the dots see a SOBRsafe company doing the right things at the right times to generate potentially exponential growth this year. That’s not an overzealous representation.
SOBRsafe laid the groundwork in 2022, combined with deals signed so far in 2023, creating a path of least resistance proposition to send SOBR stock prices appreciably higher this year, even this quarter. Not just investors are paying attention to the value proposition. Analysts are too.
At least two expect and model for SOBR stock to score much higher prices this year. Diamond Equity expects the stock will reach $5.07 this year, and Goldman Smallcap Research models for $4.00. Either result presents a bullish proposition, noting that the mid-range of the two suggests nearly 100% upside potential.
A Perfect Storm Of Opportunity Through Public And Private Sectors
Meeting that upside could be in the crosshairs today. An invigorated focus and mission by the National Transportation Safety Board (NTSB) on eliminating impaired driving is earning significant headline space. While the NTSB is always intent on implementing stricter policies to enforce safe travel, they may have needed the right tools other than suggesting harsh penalties. That’s a deterrent, but real progress can be made from SOBR now offering a tool to facilitate broad policy implementation- SOBRcheck.
It’s one the NTSB could quickly embrace. And SOBRcheck has the inherent potential to become the most powerful addition to the NTSB’s alcohol-detection arsenal in decades. Moreover, they can scale it quickly. SOBRcheck is easily implemented, easy to use, accurate, and goes beyond traditional spot-check devices by recording and maintaining cloud-based records from seamless integration in company networks. Checking those boxes makes it ideal for the NTSB agenda, which has publicly expressed its vision to help establish legislation urging, even requiring private and public sector companies and agencies to implement policy to monitor zero-tolerance alcohol abuse. The opportunity for SOBR can be even more significant.
The NTSB also recommends that the NHTSA require passive alcohol-detection systems, advanced driver-monitoring systems, or a combination of the two on all new vehicles by 2025. They are taking a further step by recommending incentivizing automakers and consumers to adopt its Safe Driver proposals. Manufacturers following that advice are more than likely, it’s probable.
It’s fair to question why and how SOBRcheck meets those wish-list requirements. The answer is simple. The SOBRcheck platform is unlike and far more robust than traditional alcohol-detection methods. It requires no blood sample or forcefully blowing into a tube for up to 30 seconds. Instead, it uses finger-touch technology that analyzes the natural humidity and vapor of the skin and generates 93% accuracy within 10 seconds. That bests more traditional and current detection technology that provides low to mid 80% accuracy. Still, that’s just one advantage of SOBRcheck.
Advantages Of Seamless Connectivity
SOBRcheck’s most compelling advantage is its connectivity enabling it to continuously monitor, maintain data, and generate real-time management reports. Often implemented at facility entry points, workers place a fingertip or palm on a small device. If the test detects alcohol, a message immediately flags the employee for intervention. This reporting functionality is a major component of the SOBRcheck platform and a significant unrivaled advantage over competing detection devices.
Additionally, unlike any other known platform, SOBRcheck can interface with client infrastructures, creating reports and aggregating data via real-time reporting and analytics to monitor and manage zero-tolerance compliance.
Those abilities are doing what they should: attracting interest. Most recently, SOBR announced signing a software as a service (SaaS) agreement with the Fox Group, based in British Columbia, Canada, and with operations in the United States. The Fox Group is a leader in North American commercial driver education, counting Provincial Driver Training Institute (PDTI), North Shore Driving School (North Shore), and Fox Professional Driver Training Centers (FoxPro) among its portfolio holdings. SOBR said The Fox Group will initially install the SOBRcheck alcohol detection technology in select Canadian locations. It plans to expand that implementation to cover its entire training organization of over 3,500 employees and all student drivers. This initial agreement could lead to significant others. The Fox Group noted it’s further evaluating SOBRsafe’s technology for uniform installation across all portfolio holdings and for recommendation to its customers.
SOBR also signed a deal with TerraTech, one of the world’s largest oilfield services and logistics providers. They installed SOBRcheck in at least two fleet and workplace applications service centers. That agreement is getting more substantial. SOBRcheck’s alcohol screening performance is expected to be installed at 17 additional TerraTech locations across 11 states by the end of April. The deal can get exponentially larger from there. Through its parent entity, TerraTech is one of more than 100 companies owned by an international conglomerate with annual revenue exceeding $20 billion. Thus, the validation from implementing the SOBR technology into its own organization can open significant doors to other expansion opportunities.
Reaching into Canada Markets
International expansion is driving additional market penetrating opportunities. SOBR signed a deal with global distributor Alco Prevention Canada. Founded in 1989, Alco is a leading provider of preventative alcohol detection solutions, selling to more than 5,000 customers across 45 countries. The deal immediately contributes to new revenue streams inherent to Alco purchasing SOBRcheck™ inventory, executing a defined plan, and dedicating resources to launch SOBRsafe’s ground-breaking touch-based technology in Canada. Alco said it performed nearly 100 tests on the device, proving it was easy to operate and highly accurate. Impressed by its potential, they expect substantial demand for SOBRcheck technology worldwide and note feeling fortunate to be the first company in Canada to get on board with SOBRsafe. There’s more fueling the bullish proposition.
SOBR inked a deal with BGM Electronic Services, Inc. that can also get appreciably larger. They will use SOBRcheck™ as its new front-line alcohol screening solution, likely expediting SOBR’s further entry into the $4 billion U.S. manufacturing market. Moreover, it could fast-track introductions and relationships with major auto manufacturers, including BGM clients Ford (NYSE: F), GM (NYSE: GM), and Stellantis (NYSE: STLA). BGM can open that door. During the height of the COVID pandemic, General Motors contracted BGM for the GM/Ventec/U.S. Government Ventilator Project, successfully delivering 390,000 electronic assemblies for 30,000 ventilators in just 150 days. As a result, GM designated them its 2020 Supplier of the Year – Over Drive Achievement Award.
Remember, these major auto manufacturers are also well-connected in the logistics and defense sectors, which supports speculation that the hands shaken with the autos could lead to more of the same from manufacturing powerhouses like United Parcel Service (NYSE: UPS) and FedEx (NYSE: FDX) Whether befitting directly or through a third party, SOBR, and inherently shareholders, are likely winners.
More Deals Accretive To Growth
More value was added last month. SOBRsafe announced signing a software as a service (SaaS) agreement with a prominent Native American tribe, a self-governing nation serving thousands of members in the United States. Terms call for initially implementing the SOBRcheck™ technology to ensure its transit fleet is 100% alcohol-free.
While a client making good use of SOBR’s unintrusive method of supporting safe operations is excellent news for all involved parties, the deal should be particularly compelling to investors because it can open the door to significantly more revenue-generating opportunities with the sovereign tribal nations. In fact, this initial deal could open pathways to additional implementations across other critical, safety-sensitive functions and potentially expedite SOBR earning further business from among the 574 tribal nations in the United States.
Another deal signed in February can’t go under-appreciated. Then, SOBR announced signing an agreement with Continental Services to implement its technology to monitor its 1,800 employees across four states. The update noted the attraction to SOBRcheck resulting from its practical, easy-to-implement solution to proactively manage alcohol policy while complementing existing safety procedures.
Industry And Private Sector Accolades
Don’t think the benefits of SOBRcheck are going unnoticed. They are getting many high-level accolades, including its recognition as Occupational Health & Safety 2022 New Product of the Year and Child Safety Networks Safe Family Seal of approval for Safety Monitoring Devices. That recognition does more than boost SOBR’s resume credibility; it validates the platform from respected and national independent sources.
That validation goes beyond SOBRcheck. SOBR’s other detection devices, including the SOBRsure™ wristband, which utilizes the same touch technology but as a wearable device, are also earning wide praise. The wearable provides a considerable competitive advantage because it allows for initial and ongoing employee management. The SOBRsure wristband applications make it an ideal alcohol-detection tool for DUI management, school bus companies, ride-share companies, and last-mile fleet businesses. Imagine Uber (NYSE: UBER) requiring the wristband for its drivers. In addition to making sense for them to do so, it would potentially put billions of dollars in revenue-generating play for SOBR. Incidentally, SOBR can also defy gravity, so to speak. A deal with Butterfield Onsite Drug Testing expands SOBR’s reach into the airline industry, providing alcohol-detection procedures for pilots and ground crew.
Other deals add to the SOBR value proposition, including value inherent to agreements made with North-Star Care and RecoveryTrek, both intending to use SOBR technology later this year to manage patient treatment. Additionally, a partnership with the ride-share app RubiRides provides another example of a practical solution to dangerous potential and liability. RubiRides specializes in trustworthy transportation for kids, exposing a need for drivers to be reliably tested. SOBRsure™ wristbands are the perfect tool to meet that challenge since they continually monitor alcohol-free safety, upload data to the cloud in real time, and enforce sober driving. They hope to add it to their policy as early as the end of Q2 2023.
Positioned And Deserved To Rally
No matter how it’s added, the sum of SOBR’s parts presents an investment opportunity too attractive to ignore. Moreover, time is making it better by SOBR continually executing its strategy to penetrate high-dollar market opportunities faster than many have expected. Frankly, just the current intrinsic value of its device technology easily supports higher prices. But that’s not a fair representation.
Inherent value matters too, and SOBR deserves plenty of that factor. Actually, it’s accruing from deals made and growing interest that can expedite SOBR earning substantial marketing and sales traction.
Those covering SOBR have that expectation. And investors just learning about this industry-changing company have plenty of public data to feast on to score their own reasons for why the best for SOBR is yet to come.
The best news of all, SOBR keeps adding reasons that justify higher valuations. In other words, SOBRsafe’s case for rapid and sustainable appreciation keeps getting stronger. For investors, that’s great news. For analysts, it may create work. After all, higher inputs change models, and in SOBR’s case, the output is likely higher price targets. In either case, it feeds into the already compelling bullish proposition, making investment consideration more than warranted; it’s timely.
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