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SOBR Safe, Inc. Growth Accelerates From Stricter NTSB Regulations And Demand For Better Alcohol Detection Technology ($SOBR)

SOBR Safe, Inc. Growth Accelerates From Stricter NTSB Regulations And Demand For Better Alcohol Detection Technology  ($SOBR)

SOBR Safe, Inc. (NASDAQ: SOBR) is riding a wave of deal-making momentum that started in 2022. The better news for itself, clients, the population, and investors is that the pace isn't slowing. On the contrary, SOBR has inked some massive deals so far in 2023, ones that do more than accelerate penetrating lucrative markets with its innovative alcohol detection platform; they also put potentially exponential revenue growth in the crosshairs. Thus, consider any pullback in SOBR stock as an opportunity rather than a precursor to a trend. 

In fact, despite some profit-taking last week, SOBR's bullish trend is intact. Year-to-date, SOBR shares are higher by over 131% to $2.20 so far on Monday. And keep in mind that strength is in the face of some extremely challenging markets for smallcaps. Yes, broader market weaknesses have had their effect; SOBR stock is well off its 52-week high of $7.50. But here's the interesting part of that decline. SOBR Safe is better positioned today than ever for growth. And that's not an unwarranted presumption. The company provides ample evidence of being in hyper-growth, signing revenue-generating deals with several companies helping SOBR's innovative finger touch alcohol detection platform advance its path toward mainstream faster than expected. 

In other words, far stronger than when investors were buying into just a technology company at significantly higher prices, they now also benefit from a steepening revenue curve. That combination more than justifies re-claiming that $7.50 level, 240% higher than the current; it supports eclipsing it. 

Value Inherent To NTSB And Private Sector Interests 

Fueling the bullish case is an invigorated focus and mission by the National Transportation Safety Board (NTSB) on eliminating impaired driving. It's not as though the NTSB was ever not intent on implementing stricter policy; it's more a case of not having the right tools to do it efficiently and on a large scale. Now they do, through SOBRcheck, a device that can, and likely will, forever change alcohol-detection practices across multiple sectors.

In fact, if they embrace its ability, and they should, SOBRcheck could become the most potent addition to the NTSB's alcohol-detection arsenal in decades. And because it's easily implemented and can scale quickly, they can immediately use it to help establish legislation urging, even requiring private and public sector companies and agencies to implement it to monitor zero-tolerance alcohol abuse. That's something they are already doing. 

The NTSB 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 also recommending incentivizing automakers and consumers to adopt its Safe Driver proposals. Manufacturers following that advice are more than likely, it's probable.

But why SOBRcheck? Because it's unlike and a far more robust platform than 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 Massive Advantage Of 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. Moreover, 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, with 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 can also get more substantial. Based on SOBRcheck's 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 Outside American Borders

There's more to influence that direction. SOBR is tapping into international sales potential, 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. 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 driving the bullish proposition.

SOBR inked a deal with BGM Electronic Services, Inc. that can also get appreciably larger. They plan to 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 Value-Creating Deals In 2023

More value was accretive to March. SOBR Safe also 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. 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. 

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 SOBRcheck's practical, easy-to-implement solution to proactively manage alcohol policy while complementing existing safety procedures.

Best In Class Alcohol Detection Platform Validated

More than paying clients appreciate the SOBR Safe products and technology. SOBR Safe products are also earning massive 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 does more than boost resume credibility; it validates the platform from respected and national independent sources. 

And 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 contribute 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, 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. 

Also, as the calls for child safety intensify, SOBR's wristband technology could earn adoption among school bus companies and their drivers without delay. Like with Uber, the revenue-generating potential from that market opportunity could be massive. Notably, requiring school bus drivers to wear SOBRsure may be a near-term opportunity. Deservedly and rightfully so.

An Undervalued Gem Positioned To Break Higher

Quite frankly, there is so much inherent potential in the SOBRcheck and SOBRsure technology that its stock trading at the $2.20 level can be, well, insulting. A case for the IP-supported intrinsic value of its technology alone can support the roughly $33.4 million market cap. But there's no need to quantify on that basis. Deals happening now with industry-leading clients combine with intrinsic value to expose a valuation disconnect that is getting too wide. And with client integration accelerating, investors not considering taking advantage of the gap could be missing an extraordinary ground-floor opportunity. 

Admittedly, the author's sentiment is decidedly bullish. But considering where the stock is trading today compared to when it was a pre-revenue generating company, it's warranted. Moreover, trading 70% lower than its 52-week high and having far more inherent firepower to support piercing and sustaining that $7.50 high, something is exposed. Under the radar SOBR Safe, with its products and technology on the path toward mainstream adoption, presents an opportunity to be appreciated and, more to the point, acted on.

 

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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