Potential Rewards from part of the article. The beauty of this...

Potential Rewards from part of the article.
The beauty of this investment opportunity is that DDT has multiple shots on goal. There are real growth opportunities in Brazil, the US, China and Australia in the short term. Any or all of these prospects could deliver. That’s exciting, but it makes it difficult to forecast earnings. So how do the numbers stack up? I like to keep my forecasts conservative. Let’s say DDT rolls out CopDots to every Lowe’s store by 2016. Imagine if neither traffic nor store numbers grow from 2013 levels. And let’s say just five units are sold to the 8,500 customers who visit each store every week. This would generate annual revenue of more than $13.5 million. Look, if they can’t sell to five out of 8,500 people who visit each store, then Lowe’s won’t give them the shelf space. The fact that Lowe’s is going ahead with this trial suggests it feels there’s big potential for CopDots. Now let’s think about the Brazilian opportunity. Imagine if between now and 2016, DDT signs a deal to dot half of the one million Fiats sold in Brazil. Let’s say DDT collects just $50 per vehicle. That’s $25 million in revenue to DDT. Let’s say the extension product DataTrace continues its promising recent performance. You’ll have to read our full report from December 2013 for all the details here, but suffice to say DDT could secure orders from China-focused Australian wineries for this product. Building on the $7 million existing revenue base, plus potential growth in the DataTrace extension AgTechnix, we can conservatively look to 2016 revenue of $12.5 million. Remember that these are relatively immature markets, so revenue tends to lag investment, and growth rates are hard to predict. But recent indications from the business have certainly been encouraging.