here it is - riveting stuff.INVESTMENT PROPOSITIONDataDot...

here it is - riveting stuff.

INVESTMENT PROPOSITION
DataDot Technology is currently in a transitional phase
having been restructured and repositioned. It will be
another year or two before results reflect initiatives to
diversify markets for its core technology and to gain
market acceptance of its new technologies, which will be
key growth drivers. In the meantime, results are being
driven by its exposure to the global auto industry.
DataDot Technology is a high growth stock with
expectations that it will more than double in size over
the next few years as the established business expands
into new geographies and market segments and as its
new technology platform gains market acceptance.
There is no doubt that a disappointing 2011 and
uncertainty about the pace of recovery weighs heavily
on the share price. However, the share price seems to
discount the likely strength of recovery into 2012 and
the level of sustainable long term growth. Our analysis
points to a valuation significantly higher than the current
share price based on sustained growth of around 15%
per annum from the established business.
The company?s tracer technology, DataTraceDNA, which
will address valuable new market opportunities,
provides considerable blue sky potential. Existing
customers are applying the technology in various
markets including casino chips, security seals, high
security printing and textiles. Prospective customers are
currently undergoing pilot trials and significant sales are
expected. Investors appear not to appreciate the impact
this technology is likely to have in driving growth and
adding value to the company.
The catalysts for a recovery in the share price will be
confirmation of a return to growth in sales, recovery in
profitability, positive announcements regarding
DataTraceDNA and confirmation of success of the
commercialisation strategies.