Good to see some BB publicity for an Ofex gem. I have owned shares in these for nearly two years and continue to accumulate in small packages from 165p down to 80p. The revenues will soon begin to flow and a number of other deals will surface as the year goes on. There is no equivalent technology about as far as I know and the prospect of companies like Estee Lauder producing superior quality products at ultimately cheaper prices has to alert other companies to the advantages of Disperse's technologies. With the prospect of uses beyond cosmetics evolving into new markets in Food and Pharmaceuticals, Disperse will ultimately have a big market in my opinion. Reckitt Benckiser are already involved in working alongside DT on the Homecare front.
What initially alerted me to Disperse was an article in Shares magazine who support the company quite well considering it is a small Ofex stock. The CEO stated that the potential market is so great that if Disperse was to collar the lot it would be as big as Microsoft. Some claim! Now I know that this is unlikely to occur but it does serve to underline what potential there is in this market. What would a company only 1% the size of Microsoft be?
I believe Disperse will move back into profit by the end of 2002 (it registered a small profit 1999-2000) on the back of some of the revenues emerging in the coffers. In future years these revenues will increase as the newer licensing agreements bear fruit. One would hope that others will further boost the production line.
Remember that that this company is only small, stock is on Ofex which is illiquid (although I have never had problems in dealing) and dependant upon future expansion. However, it is also a company with first mover advantage, no key opposition, uses a licensing model, and already has secured key partners with whom they are licensing the product.
I believe that Disperse will move markets to AIM or LSE when the economic climate settles a little and will take the opportunity to raise new funds to promote further R&D. Share price appears to be forming a base around the 130p-145p mark although that is not to say it will not drop further. Indeed, in some ways I hope it does because that will present a wonderful topping up opportunity.
DYOR and remember I do hold shares in the company so I am bound to be biased!
