TOP IDEAS: Just three days after my blog post for Investorfile's Top Ideas "DDS Wireless: Buy for value, ride the growth,” the Company announces a $6.8 million contract. Am I surprised? No!
DDS Wireless is not a start up or concept small cap stock but, rather, a Company with established and very profitable operations with continued growth prospects.
For the past 20 years DDS Wireless International has expanded its business, which specializes in transit routing and scheduling, real-time dispatching, vehicle location and tracking software applications, communications infrastructure as well as in-vehicle wireless devices for Transit, Taxi, Limousines and Work Trucks.
Over 225 DDS systems (80,000 units) are in use by the Company's customers throughout 11 countries.
Digital Dispatch Systems, the Company's largest business unit, provides turnkey wireless fleet management solutions for taxi fleets ranging in size from 10 to several thousand vehicles. DDS products include in-taxi solutions for self-service use by passengers, including leading edge entertainment, advertising and payment solutions.
The Company's StrataGen Systems unit serves the transit market for advanced scheduling and dispatching, has a customer base of 10 of the top 20 transit authorities in North America. The $6.8 million contract award from MTA New York City Transit, a long-standing StrataGen customer, is a follow on order from the successful implementation of its ADEPT intermodal trip planning application which was initially rolled out in 2010.
A key growth driver for DDS is the current size of the Company's customer book which is driving repeat business for its expanded product offerings and upgrade sales opportunities.
DDS Wireless is entering the business cycle that combines repeat business and new market opportunities, a growth story that is very attractive for investors and in the future a buyout of the Company.
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Disclosure: TSX: DD - Long
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This article is for informational purposes only. This article is based on the author's independent analysis and judgment and does not guarantee the information's accuracy or completeness. The information contained in this article is subject to change without notice, and the author assumes no responsibility to update the information contained in this article. The information contained within this article should not be construed as offering of investment advice. Those seeking direct investment advice, should consult a qualified, registered, investment professional. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock.
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