Good morning! The modest bounce in small caps continues, with FTSE Intl-aim All Share Index (FTSE:AXX) having bottomed out last week on 16 Oct 2014 at 676, and now having risen to 698 at the time of writing, a rebound of 3.3%. Although that is still down over 22% from the peak on 6 Mar 2014.

Whatever the overall market does, the only thing that really matters to me is the performance of the companies that I've invested in. So it's the year end trading updates in Dec/Jan, and the results (mostly being released in Feb/Mar 2015) that will really determine whether our portfolios out-perform or not. Not whether a particular magazine or journalist has tipped something, or if momentum traders are creating their own buzz around a stock, which is all just background noise in the long run.

Not much to report on today, there's very little news under my remit.

Seeing Machines (LON:SEE)

Share price: 6.25p
No. Shares: 827.6m
Market Cap: £51.7m

AGM update - there's an update for the year ended 30 Jun 2014 published today. It says turnover for the year was A$17.7m (that's Australian dollars, equivalent to £9.6m). Looking at a recent Edison note, forecast was for A$16.8m, so it seems that the company has come in usefully ahead of forecast in turnover anyway.

No information is given on profit/(loss) for the year, although the Edison note suggests a loss of A$2.6m (£1.4m) is expected. Although note that losses are expected to balloon to A$9.5m (£5.2m) in the current year due to the company having adopted an accelerated expansion plan, with the workforce having been doubled in size following a big fundraising in early 2014.

The current exchange rate is £1 = A$1.84.

My opinion - this is a difficult company to value at the moment, as nobody really knows how successful the company will be in extending its market reach from the mining sector into the wider transport sector. However, the way I look at it, is that their product (a warning system for drivers, which monitors their eyes and sounds an alarm if they are not giving the road sufficient attention, e.g. if they are nodding off behind the wheel) definitely works - because it is being sold successfully to the mining sector via Caterpillar agents.

Therefore it is…

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