A refreshingly frank conversation from a CEO. We got it wrong.

Investing in tech isn't always easy.

There's a lot of hype, a lot of promises and a lot of potential.

But the CEOs of today's tech companies could do a lot worse than to follow the lead of Nir Gabay, CEO of Elsight (ASX:ELS).

Elsight is a 'solution provider' with ground-breaking technology that offers the world’s fastest, super wide band, military-grade hack proof, always on, video transmission systems.

From troops or police on the ground, who need a guaranteed live video stream, to drones, medical emergency first responders, security services, through to autonomous vehicles, Elsights' technology allows HD quality video transmission using cellular networks.

The technology is already widely used by the Israeli Defence Force.

Elsight technology also has one of the lowest delays in transmission time.

This extremely low-level-latency, which is the lag time from start of sending signal to receiving a video signal is less than .5 of a second and this is particularly important in autonomous vehicles.

So with all this potential, why was the share price $1.50 at the start of 2018 and at the time of writing, is around $0.47.

In a refreshingly frank interview, Gabay admitted to InsideMarket that they have been going about things the wrong way.

The problem, according to Gabay, is two fold.

First, much of the business Elsight targets is government related and therefore approvals move slowly.

Secondly, they made a conscious decision to work on large scale strategic projects rather than smaller revenue generating targets.

Hikvision, headquartered in Hangzhou, China claims to be the leading video and IoT product provider in the world, with video as its core technology.

It is also an example, says Gabay, of how he believes big money will eventually come from strategic partnerships with companies like the Chinese giant. (Market cap of US$29b according to Forbes.)

Elsight, he says, develops video solutions while Hickvision is a video product company.

But in a refreshing fashion, he admits the importance of this distinction is something they failed to properly convey to the market.

Gabay says, over the coming months, he has launched a new strategy that will see Elsight target (verticals), that will have a direct effect on revenue.

The full 16 minute interview with Nir Gabay is below. In this interview, he goes on to say:

Large revenue streams will come from the autonomous vehicle market over the next few years.

There are some good reasons to keep watching this company:

The CEO was invited to meet Australian Defence Minister in the next few months.

One of world's largest autonomous vehicle companies is currently testing Elsight’S technology.

And it is in negotiation with a world leading military robotic vehicle company.

Non Disclosure Agreements prevent the names of either of these two companies being released at the moment

But definitely watch the Elsight space.

And if you've enjoyed this blog, please share it with friends and colleagues.

The InsideMarket Private Fund currently owns shares in Elsight.

However, we received no payment from the company for this coverage. Nor do we recommend or advise to buy or sell ELS shares. ELS shares should be considered very speculative, high-risk, and very volatile. There are significant risks inherent in developing new technologies that are not discussed here. You should always seek professional advice before considering any share purchase or sale. Please read our full disclaimer here.

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