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SOBR Safe Inc. Deals In 2023 Are Transformational, Expect More With NTSB’s Call For Stricter Alcohol Detection Legislation ($SOBR)

SOBR Safe Inc. Deals In 2023 Are Transformational, Expect More With NTSB's Call For Stricter Alcohol Detection Legislation  ($SOBR)

SOBR Safe, Inc. (NASDAQ: SOBR) should already be on the radar for growth stock investors seeking ground-floor opportunities. Those that haven't pinged its signal should consider adding it. Once on board, both groups should consider a timely proposition: take advantage of the SOBR valuation disconnect instead of just watching its track.

Yes, that's decidedly bullish sentiment. But keep in mind, while under the radar to many, plenty of SOBR bulls are quietly bidding shares higher. Year-to-date, SOBR stock is higher by over 155% to $2.44. That's off of its 52-week high of $7.50, roughly 689% higher than current levels. But here's the interesting part of those two metrics- SOBR is better positioned now than ever to create meaningful and sustainable shareholder value. In fact, investors that sent SOBR stock to its highest level were only buying into the technology implications inherent to the company's game-changing alcohol-detection technology. 

Today investors are buying into a company packed with more than intrinsics; they are taking advantage of a valuation disconnect exposed by the inherent value of its assets, which are not appropriately reflected in the share price. Thus, while shares are lower today, deals made by SOBR since 2022 more than justify re-claiming 52-week highs. But that target should be an initial one. With several big-ticket deals made and an NTSB taking its most aggressive stance to curb impaired driving in and outside the workplace, SOBR stock could move appreciably higher.

A Bullish Case Supported By Tangibles

Supporting that presumption, even expediting the pathway, is a National Transportation Safety Board (NTSB) more focused than ever on eliminating impaired driving. They were never not intent on implementing stricter policy; they never had the right tools to do it efficiently. Harsh penalties for violators are a deterrent but aren't a tangible step to curbing the problem. That's changed. SOBR has provided a massively powerful tool to the agencies' arsenal, SOBRcheck™, a passive, touch-based alcohol detection technology that can forever change how private and public sector companies and agencies monitor zero-tolerance alcohol abuse. 

That change is happening now. SOBR is well beyond the conceptual stage; they are already marketing its best-in-class alcohol-detection technology to companies and distributors in the United States and Canada. But while deals made in 2022 and the first quarter of 2023 are transformative to SOBR's growth, the calls for change by the NTSB could create a tsunami of interest for SOBR technology. Considering that the NTSB recommends that NHTSA require passive alcohol-detection systems, advanced driver-monitoring systems, or a combination of the two on all new vehicles, that's likely. And with the agency also recommending incentivizing automakers and consumers to more quickly adopt its Safe Driver proposals, change is more than likely, it's probable.

Why is SOBRcheck™ a perfect fit? Because it's nothing like traditional alcohol-detection methods. It requires no blood sample or forcefully blowing into a tube for 15 seconds. Instead, it uses finger-touch technology that analyzes the natural humidity and vapor of the skin and generates 94% accuracy within 20 seconds. That bests more traditional and current detection technology that provides low to mid 80% accuracy. Still, that's just one advantage of SOBRcheck.

A Comprehensive Reporting Interface Scores Adoption

The most significant advantage is its ability 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 key differentiator and advantage over competing screening devices. Another is that, unlike any other known platform, SOBRcheck uniquely interfaces client infrastructures, creating reports and aggregating data via real-time reporting and analytics to monitor and manage zero-tolerance compliance.

And that's attracting significant 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, with plans to expand that implementation to cover its entire training organization of over 3,500 employees and all student drivers. And the initial agreement could lead to significant others. The Fox Group is further evaluating SOBR Safe's technology for uniform installation across all portfolio holdings and for recommendation to its customers.

Another deal was announced whereby TerraTech, one of the world's largest oilfield services and logistics providers, installed SOBRcheck in its at least two fleet and workplace applications service centers. That agreement can also get more substantial. Based on SOBRcheck™ alcohol screening performance, TerraTech could roll the technology out to its 17 locations across 11 states, possibly completing implementations in April of this year. TerraTech presents no small opportunity. Through its parent entity, they are one of more than 100 companies owned by an international conglomerate with annual revenue exceeding $20 billion. Thus, validating and implementing the SOBR technology into its own organization can significantly steepen SOBR's revenue curve. 

Expanding Its Market Presence

There's more to appreciate. SOBR announced accelerating its international expansion, signing 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. Notably, they are bullish on its potential, saying they foresee demand for SOBRcheck™ technology worldwide and feel fortunate to be the first company in Canada to get on board with SOBRsafe.

A deal made with BGM Electronic Services, Inc. is another value driver. They plan to use SOBRcheck™ as its new front-line alcohol screening solution, which from a business standpoint, could expedite SOBR's further entry into the $4 billion U.S. manufacturing market. It could even help fast-track introductions and relationships with major auto manufacturers, including BGM clients Ford (NYSE: F), GM (NYSE: GM), and Stellantis (NYSE: STLA). Even through third-party relationships, the revenue-generating opportunity can be substantial through ties with BGM. 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. That validation could help put businesses from logistics and defense manufacturing powerhouses like United Parcel Service (NYSE: UPS) and FedEx (NYSE: FDX) in SOBR's sights. Again, either directly related or through a third party, SOBR is a winner. 

That's just some of what was announced in March. SOBR also announced signing a software as a service (SaaS) agreement with a prominent Native American tribe, a Self-Governing Nation in the United States serving thousands of members. 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. Assuming SOBRcheck™ produces the desired results, 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. 

There's still more to factor into the SOBR value equation. The agreements mentioned add to another significant one made in February. Then, SOBR announced a deal with Continental Services to implement its technology to monitor its 1,800 employees across four states, with the attraction there being SOBRchecks™ practical, easy-to-implement solution to proactively manage alcohol policy while complementing existing safety procedures.

A Recognized Award Winning Solution

Know this: the interest is SOBRcheck™, and the entirety of SOBR Safe technology is warranted. Deals are coming toward SOBR after its technology earned significant industry accolades, including Occupational Health & Safety 2022 New Product of the Year and Child Safety Networks Safe Family Seal of approval for Safety Monitoring Devices. That recognition provides more than resume credibility; it can also be fuel to accelerate its 2023 growth mission by validating the platform for broad and diverse use.

That includes SOBR's additional detection devices, including the SOBRsure™ wristband, which utilizes the same touch technology but as a wearable device. This feature provides a considerable competitive advantage because it allows for initial and ongoing employee management. Don't vilify that capability, by the way. SOBR's technologies are not designed to assist in the micromanagement of employees but rather to support companies in doing the right thing: keeping intoxicated drivers off the highways and equipment. Its value extends past that. SOBRcheck™ and SOBRsure™ applications make it an ideal alcohol-detection tool for DUI management, school bus companies, ride-share companies, and last-mile fleet businesses. Aviation is in play as well. 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, using SOBR technology 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, creating 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. 

Also, as the calls for child safety intensify, SOBR's same wristband technology could earn adoption among school bus companies and their drivers without delay. The revenue-generating potential from that market opportunity could reach the billion-dollar-plus level and be in near-term reach with expected NTSB guidance.

An Under The Radar Opportunity Exposed

All told, the sum of SOBR's parts exposes a value investment proposition that may be too good to ignore. And that sentiment is supported by real deals in real time that position SOBR to post extraordinary growth in 2023. Accretive arrangements in the books today expose a valuation disconnect between share price, intrinsics, and potential. And few expect the pace of client integrations to slow. On the contrary, SOBR is riding a perfect wave of opportunity by leveraging the power of its disruptive, best-in-class alcohol detection platform with a legislative tailwind that could make it a front-line defense against intoxicated employees and drivers. 

Thus, despite its 155% rise in value in 2023, a better and more deserved target is its 52-week high of $7.50. Indeed, SOBR has the revenue-generating firepower today to re-claim that mark and, more significantly, exceed it. And that's not an overzealous assumption. SOBR is doing everything right to prove it has the tangibles to support considerably higher prices. As important, a growing client list, most of them industry leaders, is helping expose the inherent value. That combination will likely do more than make this under-the-radar company a mainstream name and technology; it should drive revenues appreciably higher.

 

 

Disclaimers: Shore Thing Media, LLC. (STM, Llc.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC has been compensated up to ten-thousand-five-hundred-dollars cash via wire transfer by a third party to produce and syndicate content for SOBRsafe, Inc. for a period of one month ending on 4/30/23. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.

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